Ankr launches privacy-protecting DID verification tool, Ankr Verify.

Web3 infrastructure developer Ankr has announced the launch of a new product called Ankr Verify. The product utilizes zero-knowledge proof (ZKP) technology to replace user personal data for on-chain identity verification, providing a privacy-preserving identity authentication tool.

Ankr Verify Introduction

What Problem does Ankr Verify Solve?

Existing identity verification mechanisms are fraught with privacy concerns. As any data on the internet can be easily copied and stored, sending personal information to any entity online carries more privacy risks compared to offline transactions. However, the verification process is an essential part of identity verification and KYC.

In the early stages of Web3, attempts were made to bypass this issue with complete anonymity. However, complete anonymity leads to other problems, and existing Web3 products face challenges in combating hidden crimes and achieving mainstream compliance.

How Does Ankr Verify Work?

Ankr Verify verifies user identity using zero-knowledge proof technology. By utilizing zero-knowledge proofs, it verifies user identity without disclosing personal information, thus creating a decentralized identity infrastructure that balances privacy and efficiency, known as Decentralized Identifier (DID).

Users link their wallets to Ankr Verify and, upon initial use, upload personal information such as name, age, and nationality to Ankr's partner, Synaps, for verification. Verified users can then use Ankr Verify's zero-knowledge proofs to complete identity verification without disclosing personal information when using protocols that require verification, such as verifying the user's country.

Throughout the entire verification process, personal data is stored only in Synaps' database, with no other company, protocol, or application having access, maximizing user privacy.

Ankr Verify Development Challenges

In an ideal scenario, Ankr Verify would be able to quickly complete various service verifications while preserving user privacy, enhancing user experience. However, there are still several difficulties that need to be overcome:

Centralization Risks

Ankr Verify centralizes user personal data, and the verification process is determined by Synaps, introducing a higher risk of single point failures and hindering the attraction of existing ecosystem users.

Difficulty in Building an Ecosystem

In order for the above mechanism to achieve maximum effectiveness, allowing users to hold the DID issued by Ankr Verify and use various protocols, strong ecosystem integration is required. This entails attracting various protocol adoptions and having a group of real users adopting the standards, which will be a common challenge for all competitors in the DID industry.

However, Ankr still has the opportunity to leverage its developer influence in the Web3 ecosystem to encourage protocol teams to adopt the Ankr Verify package, indirectly influencing the consumer side, although it will still be a long road ahead.