The EU To Discuss The Implementation Of Zero-Knowledge Proofs For Identification

The European Union had its fair share of battles with privacy, as it became the first place in the world to accept strict regulations when it comes to data protection. However, the EU has been infamous for the lack of anonymity standards of private cryptos like its central bank digital currency (CBDC) project.

EU lawmakers, however, are seemingly working towards the idea of electronic IDs, which would ensure privacy in the space of citizens’ digital identities. It turns out that the Industry, Research, and Energy Committee released the standard for zero-knowledge proofs regarding the European digital identity framework. The new standard was accepted in the committee with 55 votes in its favor and will now have to face the trialogue phase of negotiations.

According to a press release from the committee, EU citizens would have the control to choose what information to share and with whom.

“The new eID would allow citizens to identify and authenticate themselves online (via a European digital identity wallet) without having to resort to commercial providers, as is the case today - a practice that raised trust, security and privacy concerns.”

The senior director for EU government affairs at Circle Jonas Fredriksen added that such a proposal could kick-start new business models in the emerging digital economy, as companies may choose to create products and services that are reliant on the eID solutions.

What are zero-knowledge proofs?

The concept of zero-knowledge proofs is now a hot topic among researchers and developers as a possible method to ensure regulatory compliance and privacy in digital currencies. As such, zero-knowledge proofs could be connected to Europe’s eIDAS electronic identity system.

In short, zero-knowledge proofs imply that one party doesn’t have to prove to the other party that the data they send or receive is indeed true. However, not everybody is sold on that remedy. Balázs Némethi, CEO of Veri Labs and co-founder of kycDAO, noted that it is recommended to only use off-chain solutions when proofs alone are insufficient and personal information exchange between the parties of a transaction is necessary.