zCloak Network's full-chain KYC product, Legit ID, was officially launched

! [zCloak Network’s full-chain KYC product Legit ID is officially launched] (https://cdn-img.panewslab.com/panews/2023/11/09/images/69OZ88Fb3z.png)

On November 6, 2023, zCloak Network’s latest full-chain KYC product, Legit ID (legit3.id), was officially launched. zCloak is a privacy-first decentralized digital identity and trusted credential infrastructure that aims to establish a new identity data system and trust delivery paradigm in the Web3 era. The emergence of Legit ID will reshape the industry landscape in the field of digital assets and digital identity.

Dr. Zhang, founder of zCloak Network, said, "While maintaining the decentralized and open core of Web3, the necessary regulation and compliance are also crucial. We are like explorers of the Wild West, ready to bring law and order to that ‘land’ through technological means. Looking back at the development of the Web3 industry, blockchain technology has always been known for its openness and anonymity, and the emergence of many DeFi protocols and RWA assets on the chain has brought profound changes to the financial field. With this comes a daunting set of challenges, and none of the toughest and more serious issues facing the industry today is regulation and compliance.

Exploring Regulatory and Compliance Issues in the Digital Realm

In the digital world, the existence of global regulatory and compliance laws can effectively deter and combat illicit financial activities and protect consumers and investors. The decentralized and permissionless nature of blockchain will inevitably cause ordinary users to worry about asset security, data privacy, information jurisdiction, etc.

In view of the growing demand for regulation in the Web3 ecosystem, governments and regulators have been looking for solutions to find a reliable regulatory solution that is both in line with the decentralized nature of Web3. With the rise of RWA tokenization, solutions such as Know Your Customer (KYC) and Anti-Money Laundering (AML) are gradually gaining more attention, and the industry generally believes that this is the only way to comply with on-chain applications. While KYC and AML have been highly effective in verifying legitimate transactions and discouraging illegal on-chain activities, there is still significant resistance to the implementation of traditional KYC in Web3, and we believe that the main reason for this is that traditional KYC solutions infringe on the principles of anonymity and privacy that Web3 users are accustomed to.

This meant that we needed a new KYC solution that could meet global regulatory requirements while protecting user privacy, so zCloak Network brought Legit ID. Legit ID is the product of zCloak’s years of deep cultivation in the field of zero-knowledge proofs and DIDs. The phrase “KYC at one time, universal across the chain” can perfectly summarize the core features of Legit ID. It only requires users to perform a KYC verification once, and the full-chain KYC proof can be carried out on a global scale. While sharing identity information, it fully practices the concept of personal data sovereignty advocated by Web3. Based on zCloak’s long-term technology accumulation, Legit ID uses zero-knowledge proof technology and decentralized identity system to achieve KYC services with security and privacy as the core orientation.

Core Benefits of Legit ID

First of all, a distinguishing feature of Legit ID is its full-chain availability. Legit ID uses the DID and VC protocols under the W3C standard to store KYC result data off-chain, and uses a unique self-verifying data on-chain technology to replace oracles, which can easily share data with smart contracts across multiple chains, including Ethereum, Solana, Sui, and any layer2/3 public chain, while ensuring the authenticity of the data. Users not only gain the sovereignty of their identity data in a real sense, but also flexibly use their own KYC verification results to drive smart contracts at the protocol layer without the need to perform traditional message cross-chain operations.

Second, Legit ID can provide real-time AML data updates of user addresses at the protocol layer. As we all know, identity compliance monitoring is not a one-and-done operation. An address that is compliant today may be involved in illegal financial activities tomorrow. Therefore, it is not enough to just put KYC results on the chain, but also need to cooperate with dynamic AML/CTF monitoring to further reduce risks. Legit ID works with Chaintool, an on-chain data security project, to provide second-level AML alerts to all parties involved in transactions, aiming to protect businesses, investors, and individual users from the threat of illegal addresses.

In addition, Legit ID also supports the project team to customize the identity verification content. The user information obtained by the third-party smart contract can be as simple as KYC check pass/fail status, anti-money laundering risk score, or more complex identity information based on zero-knowledge proof. Legit ID can deliver proof of user identity to the smart contract, including location, age range, income level, credit rating, risk appetite and other factors, while fully protecting user privacy. The richness and level of detail of the proof results can be quickly tailored to the specific needs of each validator.

Finally, Legit ID provides businesses with a low-cost, easy-to-integrate solution for authentic user authentication. The Legit ID product uses a subscription system, and its use cost is much lower than the cost of the project party to contact the KYC company for identity verification, and has a huge advantage in integration time and business process. The project team does not need to modify any existing business logic, and only needs to access the contract deployed by Legit ID to obtain complete user identity information.

In summary, Legit ID is an innovative authentication platform that provides full-chain availability across multiple blockchain platforms, as well as a real-time AML monitoring and alerting system to enhance compliance and security for businesses and users. In addition to regulatory and compliance use cases in the financial sector, Legit ID can also play a huge role in on-chain anti-sybility, DAO governance, personality proof, and other scenarios.

About zCloak

zCloak Network is a privacy-first decentralized digital identity and trusted credential infrastructure that aims to establish a new identity data system and trust delivery paradigm in the Web3 era. To learn more about Legit ID (legit3.id) and zCloak Network, visit the platform’s website. For the latest news and developments from zCloak, follow the company’s official social media:

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