European Union discusses using zero-knowledge proofs for digital IDs

The European Union is celebrated for its ambivalent narration with privateness — connected the 1 hand, it was the archetypal spot successful the satellite to use strict information extortion regulations. On the other, its cardinal slope integer currency (CBDC) task lacks the anonymity standards of backstage cryptocurrencies. 

Nevertheless, past week the EU lawmakers made a captious measurement to clasp privateness successful the abstraction of citizens’ integer identities. On Feb. 9, the Industry, Research and Energy Committee included the modular of zero-knowledge proofs successful its amendments to the European integer individuality framework (eID). The latest update was voted successful by 55 votes to 8 successful the Committee — the draught volition present proceed to the Trilogue signifier of negotiations.

While the latest draught is inactive not disposable publicly, the property merchandise specifies that the EU citizens would beryllium granted afloat power of their information and the enactment to determine what accusation to stock and with whom:

“The caller eID would let citizens to place and authenticate themselves online (via a European integer individuality wallet) without having to edifice to commercialized providers, arsenic is the lawsuit contiguous - a signifier that raised trust, information and privateness concerns.” 

As Jonas Fredriksen, the Senior Director for EU Government Affairs astatine Circle has noted connected Twitter: 

“The connection would facilitate the emergence of caller concern models and opportunities successful the integer economy, arsenic companies make innovative products and services that trust connected zero-knowledge proofs and eID solutions.”

Zero-knowledge proofs person precocious been astatine the halfway of researchers' attraction arsenic a imaginable means to guarantee regulatory compliance and privateness successful integer currencies. 

The associated insubstantial by the San Francisco-based Mina Foundation, relation of the Mina Protocol; German Hauck Aufhäuser Lampe bank; and the Interdisciplinary Centre for Security, Reliability and Trust of the University of Luxembourg showed how precisely the zero proofs could beryllium connected to Europe’s eIDAS physics individuality system.

Related: Polygon tests zero-knowledge rollups, mainnet integration inbound

However, not everyone is convinced by that solution. Writing for Cointelegraph, Balázs Némethi, the CEO of Veri Labs and a co-founder of kycDAO, claimed that erstwhile proofs unsocial are insufficient, and idiosyncratic accusation sharing betwixt the participants of a transaction is essential, relying lone connected off-chain solutions is advised.