March 9, 2023 – Hong Kong, Hong Kong
Self-sovereign identity service SelfKey has released a new white paper detailing KYC solutions with features powered by artificial intelligence and zero-knowledge verifications.
The AI based solution and the ZK based features built using KYC-Chain technology – will be rolled out to vendors, enabling them to securely authenticate users without exposing them to identity theft.
ZK verifications provide a way to verify that a piece of information is correct without disclosing the information itself. They are popularly used in blockchain systems to allow entities to transact without disclosing sensitive financial information such as account balances.
SelfKey’s zero-knowledge KYC system uses the same technology for identification purposes.
One of the benefits of SelfKey’s ZK solution is that it allows merchants to perform mandatory KYC checks without the hassle of storing user data.
This frees platforms from the burden of keeping sensitive information such as selfies of customers and scans of identity documents complete with the security risk that this entails. Users get the assurance that their data is not stored in centralized databases for every platform they work with.
The development of a no-knowledge KYC solution occurred in tandem with further enhancements to SelfKey’s digital identity service. This included the integration of artificial intelligence to improve accuracy and deter fraud.
Integrated into SelfKey’s POI (Proof of Individuality) solution, the technology can combat fake personas created using AI models, which can pass as humans in many digital identity checks.
SelfKey’s enhanced KYC solution was developed in response to industry-wide complaints from vendors struggling with user authentication in the age of AI.
Artificial intelligence has reached a stage where it’s relatively easy to pass KYC checks using computer-generated selfies derived from persons who don’t exist. This opens the door for fraudsters to commit financial crimes while hiding behind a cloak of anonymity.
To counter the rise of AI use for nefarious purposes, SelfKey’s solution will combat AI with the same technology.
Integrated into SelfKey’s POI system, the technology will leverage AI to ensure network users are the same individuals who originally came on board. This will discourage the use of wallet resale a practice that has traditionally been difficult for platforms to stop.
SelfKey’s AI is trained to detect facial composition differences between the user’s initial KYC and the image they use to reauthenticate.
Research by SelfKey has shown that the technology also has broader applications in the field of digital identity. A future upgrade to SelfKey’s POI system will enable AI to be used for behavioral detection, increasing its effectiveness in the fight against identity fraud.
Other products to be released by SelfKey include a customizable NFT collection with built-in rarity rating.
The more users join a SelfKey project, the rarer the customizations become. Users can also merge these customizations to create higher-tier NFTs that will attract even more demand due to their scarcity.
SelfKey has also revealed that it is creating a new mechanism for its DAO. This will cover future positions integrated into the DAO, with grants provided by the DAO.
About SelfKey
SelfKey is a fast-growing blockchain startup developing digital identity solutions. The technology enables individuals and companies to take back ownership of their identity data.
SelfKey’s blockchain-based identity system allows identity owners to truly own, control and manage their digital identities, creating a more secure world where personal data and privacy are protected.
Read more here.
Contact
Marketing team, SelfKey
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