Identity Chain

TL;DR

IdentityChain is a blockchain-based KYC framework that balances user privacy with regulatory accountability, utilizing cryptographic advancements to ensure compliance and prevent misuse.

Contribution

It introduces a novel privacy and accountability integrated framework for blockchain KYC services, addressing regulatory conflicts and enhancing user trust.

Findings

Provides privacy-preserving KYC on public blockchains

Ensures user accountability and regulatory compliance

Utilizes cryptographic techniques for security

Abstract

The first generation of cryptocurrencies introduced revolutionary concepts, yet faced challenges in privacy and regulatory compliance. While subsequent cryptocurrencies aimed to address privacy concerns (like Zcash and Monero), they often conflicted with regulatory frameworks, hindering broader adoption. In response, inspired by recent researches about privacy and accountability and incentive techniques in Blockchain, we propose IdentityChain as a novel framework that integrates privacy and accountability principles, leading to a robust system equipped with adaptable rules. IdentityChain is a KYC (Know Your Customer) service on top of a public Blockchain (e.g., Ethereum, Ton, Polygon). The goal is to maintain privacy while ensuring compliance with existing regulations. Privacy is one of the key characteristics of IdentityChain, it's crucial for preventing conflicts of interests further discussed how. Accountability is also one of the main characteristics of IdentityChain and prevents from misbehave of users. Privacy and accountability together wouldn't be possible unless advancements in cryptography.