Alchemy Pay is concerned that legacy 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 anonymised 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 centralised servers. As a 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.
zkMe's zkKYC solution allows users to prove they meet verification criteria without exposing any personal information. Advanced cryptography converts identity data into anonymised 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 centralised servers;
Security is bolstered by decentralising 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.
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, undercollateralised loans, loyalty programmes, 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.
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