Alchemy Pay and zkMe team up to bring groundbreaking privacy-preserving KYC solutions to onboard users in a compliant safe and secure manner through the zkMe identity oracle.
Overview
- zkMe is an end-to-end zk proof and decentralized identity oracle
- Alchemy Pay will start accepting zkMe’s privacy-preserving KYC, AML, and compliance related onboarding services
- Through this collaboration, the two companies prove it’s possible to merge the blockchain ethos of privacy and decentralization with incoming regulation
Recommended : Transforming Banking with RPA: Towards a Fully Connected Enterprise
Despite the maturity of the internet and the awareness of privacy concerns, existing KYC solutions often impose archaic and risky procedures on users – a solution that often exposes the user’s information to employees and companies (such as easily accessible pictures of passports), while users have no control over how their data is shared with third-parties. The repetitive verification required across different platforms only exacerbates data exposure risks.
With zkMe providing an identity oracle, which treats each identity as a set of anonymized data points, all identity-based queries (from personal info such as KYC, to on and offline credentials such as medical licenses and social media prowess) can be packaged in a single oracle, privately.
Traditional KYC methods often create friction during onboarding, sacrifice user privacy, and impose security risks by storing personal data on centralized servers. As a leading payments gateway bridging fiat and crypto economies globally, Alchemy Pay is teaming up with zkMe to integrate cutting-edge zero-knowledge proof (ZKP) technology into its onboarding process. This collaboration will provide enhanced privacy, security and convenience for Alchemy Pay users worldwide.
How zkMe’s zkKYC innovates identity verification
zkMe’s zkKYC solution allows users to prove they meet verification criteria without exposing any personal information. Advanced cryptography converts identity data into anonymized proofs of the credential, which are then validated against predefined requirements. The KYC process then only reveals that the users meet the criteria, such as “is this user over 18,” and “which country is this user a citizen of,” without risking crucial information such as the picture of the passport, or the passport number, all while being compliant in most key jurisdictions.
The process ensures:
- User privacy is safeguarded through end-to-end encryption and selective disclosure of information. No personal data is ever stored on centralized servers.
- Security is bolstered by decentralizing computation and using threshold encryption across multiple parties. No single entity can access user data.
- Regulatory compliance is maintained by enabling identity recovery if required by authorities.
- Convenience is improved by enabling instant verifications that can be reused across services that deploy zkMe’s identity oracle. No more repetitive KYC processes.
Recommended : 5 Unintelligent AI Strategies to Ditch Immediately
By adopting zkKYC, Alchemy Pay reaffirms its commitment to user security and privacy. This integration paves the way for a more streamlined, trusted and regulatory-compliant onboarding experience.
Looking ahead, zkKYC opens up new possibilities for Alchemy Pay to expand its services while upholding privacy values. Potential use cases include permissioned DeFi, undercollateralized l****, loyalty programs, and more. By leveraging advanced cryptography, Alchemy Pay can cater to emerging Web3 markets while giving users control over their personal data. This collaboration with zkMe represents a monumental step towards the future of self-sovereign identity.
Recommended : Regulators are Clear: Communications Compliance a Must
[To share your insights with us, please write to sghosh@martechseries.com]
Comments are closed.