fabohax

nostr

RoboSats As The 2nd Sovereign Engineering North Star

0xbitcoiner

mostly_harmless

WW3, maybe.

elvismercury

bitcoin

This is what a Bitcoin Circular Economy looks like

JoeNakamoto

conspiracy

deleted by author

tech

Here my post about how we can overcome the cumbersome KYC process

![1_saw4wLwsY3ipgipJ4k1pxg.webp](https://m.stacker.news/16826)

KYC, or Know Your Customer, is a process designed to verify the identity of individuals engaging in financial transactions, ostensibly to prevent fraud and money laundering. However, the very nature of KYC makes it inherently exploitable. The vast amounts of sensitive personal information collected during the KYC process can become targets for hackers and identity thieves. Moreover, KYC data has been found for sale on dark web markets, indicating a significant risk of exploitation. Additionally, the rigid and standardized nature of KYC procedures can create loopholes that criminals exploit to bypass verification processes. As a result, despite its intentions, KYC poses a substantial risk to individuals' privacy and security, leaving them vulnerable to exploitation by malicious actors.

A Risk-Based Zero Knowledge Identity (RZKI) is needed to address the vulnerabilities and shortcomings of the traditional KYC process. By adopting a risk-based approach, RZKI focuses on evaluating the level of risk associated with each user, rather than blindly collecting vast amounts of personal information. This allows for a more tailored and targeted verification process, reducing the amount of sensitive data that needs to be stored and minimizing the risk of exploitation. Additionally, by incorporating Zero Knowledge (ZK) technology, RZKI ensures that users can verify their identity without revealing unnecessary personal information, further enhancing privacy and security. Overall, RZKI offers a more efficient, secure, and privacy-respecting alternative to traditional KYC methods, making it a crucial solution for addressing the vulnerabilities of the current identification process.

**Identity in Decentralized Finance for Anonymous Peer-to-Peer Crypto-Fiat Trading**

In the fast-paced world of decentralized finance (DeFi) and peer-to-peer (P2P) crypto-to-fiat trading, customer identification (KYC) has traditionally been a significant hurdle. However, in an effort to enhance user experience and ensure security without compromising privacy, a revolutionary new proposal emerges: Risk-Based Zero Knowledge Identity (RZKI).

**What is RZKI?**
RZKI, or Risk-Based Zero Knowledge Identity, is an innovative approach seeking to replace and improve the traditional KYC method in DeFi and P2P crypto-fiat trading. By incorporating Zero Knowledge (ZK) technology and a risk-based approach, RZKI aims to ensure a seamless and lightweight user experience in terms of personal information burden, while still providing verified and validated identification.

**How does RZKI work?**
By utilizing artificial intelligence (AI) algorithms and Zero Knowledge technology, RZKI allows users to verify their identity without disclosing sensitive personal information to third parties. Instead of requiring an exhaustive list of documents and identity proofs, RZKI assesses the risk associated with each user and adapts the verification process accordingly.

**Benefits of RZKI in DeFi and P2P Trading**
1. Preserved Privacy: RZKI protects user privacy by avoiding unnecessary disclosure of personal information.

2. Enhanced User Experience: With a risk-based approach and removal of entry barriers, RZKI offers a smoother and lighter user experience.

3. Reinforced Security: By using Zero Knowledge and AI technology, RZKI ensures verified and validated identification without compromising security.

4. Inclusive Access: RZKI eliminates entry barriers for those facing challenges in obtaining traditional identification documents, such as the unbanked or those living in areas with poor records.

**How ‘Risk’ is defined, measured and conditioned**
Risk can be defined as the likelihood or probability of an event occurring and the potential impact or consequences of that event. In the context of a Risk-Based Zero Knowledge Identity (RZKI) system, risk is typically assessed based on various factors such as the user's behavior, transaction history, geographic location, and other relevant data points.

Risk is measured by analyzing these factors to determine the level of risk associated with each user. This analysis often involves assigning risk scores or ratings to users based on the likelihood and potential impact of fraudulent or illicit activity.

Conditioning refers to the process of using risk assessments to determine the appropriate level of scrutiny or verification required for each user. Users deemed to pose a higher risk may be subjected to more stringent verification measures, while those considered lower risk may undergo a less intrusive process.

Overall, risk in the context of RZKI is defined, measured, and conditioned based on a comprehensive analysis of various factors to ensure that appropriate measures are taken to mitigate potential risks while maintaining a user-friendly and efficient verification process.

**How ZK improves the ID verification process without storing personal information and securing identity validation**
Zero Knowledge (ZK) technology improves the ID verification process by allowing individuals to prove certain facts about themselves without revealing any unnecessary personal information. Here's how it works and how it enhances security:

1. Proof without Disclosure: With ZK technology, individuals can provide proof that they possess certain attributes or meet specific criteria without disclosing the underlying personal information itself. For example, a user can prove they are over 18 without revealing their exact age or date of birth.

2. Privacy Preservation: ZK ensures that only the necessary information is disclosed for verification, protecting individuals' privacy by minimizing the exposure of personal data. This significantly reduces the risk of identity theft or misuse of sensitive information.

3. Enhanced Security: By eliminating the need to store large amounts of personal data, ZK reduces the risk of data breaches and unauthorized access. Since sensitive information is never transmitted or stored, there are fewer opportunities for hackers to exploit vulnerabilities in the system.

4. User Control: ZK puts individuals in control of their own data, allowing them to selectively disclose only the information necessary for verification purposes. This empowers users to maintain ownership of their personal information and decide how it is used.

**Conclusions**

The Risk-Based Zero Knowledge Identity (RZKI) approach represents a step forward in the evolution of identification practices in DeFi and P2P trading. By replacing traditional KYC with a more efficient and privacy-respecting method, RZKI promises an enhanced and secure user experience for all participants in the crypto-financial ecosystem. With RZKI, the future of identity is more inclusive, lightweight, and secure.


#KYC #ZeroKnowledgeProof #Identity #UserExperience #Bitcoin


Risk-based Zero-Knowledge Identity (RZKI) for a Better Costumer Experience

builders

date: 2023-07-11


Reality is the state of things as they actually exist, rather than as they may appear or be imagined. It is the totality of everything that exists, both physical and non-physical. Reality is often contrasted with illusion or fantasy.

There are many different ways to think about reality. Some people believe that reality is objective, meaning that it exists independently of our minds. Others believe that reality is subjective, meaning that it is created by our minds. Still others believe that reality is a combination of the two.

There is no one right way to think about reality. It is a complex and mysterious concept that has been debated by philosophers and scientists for centuries. However, one thing is for sure: reality is real, and it is something that we all experience in our own unique way.

Here are some of the different ways that reality has been defined:

* **The totality of everything that exists.** This definition of reality is based on the idea that there is a single, objective reality that exists independently of our minds.

* **The way things appear to us.** This definition of reality is based on the idea that our perception of reality is subjective and can be influenced by our own thoughts, feelings, and experiences.

* **A combination of the objective and subjective.** This definition of reality is based on the idea that there is an objective reality, but that our perception of it is also subjective.


Ultimately, the definition of reality is up to each individual to decide. There is no one right way to think about it. However, it is important to be aware of the different ways that reality has been defined and to think critically about our own beliefs about.


About Reality

privacy

Reminder and example about impact of metadata leak in Nostr DMs

econ

Will AI Cause Massive Deflation?

k00b

our duty is to make fiat obsolete, deprecated and garbage.

SN release: post and comment pinning

thats nice, i'm watchin wide open eyes for this dev process. pls lmk if u interested into make spanish version, i'm sure communities will enjoy


culture

What is the most reasonable country on cost of living to quality of life to live

piecover

check Cuzco, is way more gorgeous than the tour pics.

Meme Monday - Best Bitcoin Meme Gets 25,000 Sats

nice game man. jus u putd me a sad face, not that mood now, lol

@fabohax's bio

![F9AESVjXkAAAOuX.jpeg](https://m.stacker.news/14166)

thx @0xbitcoiner ! i'm shilling stacker.news here wit friends in Perú, how we can make spanish version asap


CG Architect worx for sats

[hax.pe](https://hax.pe)
