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The European Union Planning To Use Zero-Knowledge Proofs For Digital IDs

  • The European Union is exploring the potential of utilizing zero-knowledge proofs for digital identification

  • This groundbreaking decision could revolutionize the way data is stored and shared, providing a secure and reliable platform for businesses and individuals alike

  • With zero-knowledge proofs, users can rest assured that their data is safe and secure, while still allowing for the necessary access and verification of information

  • This is a major step forward in the digital age and one that could have far-reaching implications for the future of data security

16-Feb-2023 By: Rohit Tripathi
The European Union P

The EU Committee supported the idea of using zero-knowledge proofs, 

And it might be incorporated into the new legislation.

The European Union has long been known for its complex relationship with privacy. On the one hand, it was the first place to introduce stringent data protection regulations, setting a precedent for other areas to follow. This bold move demonstrated a commitment to safeguarding the privacy of its citizens and ensuring the security of their data. On the other, it's Central Bank Digital Currency (CBDC) project lacks the anonymity standards of private cryptocurrencies.

Last week, however, EU lawmakers took a major step towards embracing privacy in the realm of citizens' digital identities. On February 9th, the Industry, Research, and Energy Committee voted in favour of including the standard of zero-knowledge proofs in its amendments to the European digital identity framework (eID). The draft was approved by a margin of 55 votes to 8 and will now proceed to the Trilogue phase of negotiations.

The press release states that the EU citizens will be granted full control of their data and the option to decide what information to share and with whom :

“This would allow them to identify and authenticate themselves online (via a European digital identity wallet) without having to resort to commercial providers, thus addressing trust, security, and privacy concerns.”

As Jonas Fredriksen, the Senior Director for EU Government Affairs at Circle, noted on Twitter :

“This proposal could facilitate the emergence of new business models and opportunities in the digital economy, as companies develop innovative products and services that rely on zero-knowledge proofs and eID solutions.”

Recently, zero-knowledge proofs have been the focus of researchers as a potential way to ensure regulatory compliance and privacy in digital currencies. A joint paper by the Mina Foundation, Hauck Aufhäuser Lampe bank, and the Interdisciplinary Centre for Security, Reliability, and Trust of the University of Luxembourg demonstrated how zero-knowledge proofs could be integrated with Europe's eIDAS electronic identity system. 

However, not everyone is convinced by this solution. Balázs Némethi, the CEO of Veri Labs and co-founder of kycDAO, argued in an article that when proofs are not enough and personal information sharing between the participants of a transaction is necessary, relying solely on off-chain solutions is the best option.

Also, Read - Crypto Vs. Banks: Binance Suspends Bank Transfers in U.S. Dollars

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