Zero-Knowledge Proof Framework for Identity Verification and Interoperable Payments on the Decentralized Web

Digital identity verification is central to trust management on the evolving decentralized web. Traditional web-based identity models, which are heavily centralized and dependent on trusted intermediaries, pose significant challenges related to user privacy, data security, and regulatory compliance, especially in sensitive contexts such as Know Your Customer (KYC) processes. This paper introduces a novel privacy-preserving KYC verification framework leveraging Zero-Knowledge Proofs (ZKPs), Self-Sovereign Identity (SSI), Decentralized Identifiers (DIDs), and smart contracts, explicitly designed as a decentralized trust infrastructure for web-based interoperable payments. Our approach enables users to verify their identities across multiple platforms without revealing sensitive personal information, thereby significantly reducing long-term reliance on centralized authorities and enhancing user control and privacy. Furthermore, our system achieves cross-chain interoperability, ensuring that identity verification credentials can be securely and efficiently recognized across diverse Web3 ecosystems. We present a detailed prototype implementation of our DID framework, highlighting its ability to meet regulatory requirements while ensuring seamless interoperability across platforms. Comprehensive performance evaluations, including metrics on proof generation time, gas consumption, and transaction costs, demonstrate that the framework achieves low-latency verification and efficient execution, making it suitable for high-throughput, web-scale deployment.