In a world where technology changes quickly and digital interaction is growing all the time, the idea of decentralized identity has become a game-changer.
At the forefront of this digital change is a revolutionary idea called “Proof of Humanity.” This new way of doing things not only makes security and privacy better but also opens the door to a new era of decentralized online interactions.
Let’s delve into the depths of Proof of Humanity, uncovering its benefits and potential implications.
So, What is Proof of Humanity (PoH)?
At its core, Proof of Humanity is a way for people to prove that they are real people. This proof can come in many forms, like biometric data, social media profiles, or other information that can be checked.
Proof of Humanity sets up a strong foundation for building decentralized identity systems by combining these proofs with the fact that blockchain can’t be changed.
Traditional centralized identity systems are often vulnerable to data breaches, identity theft, and privacy concerns. This is where the idea of “Proof of Humanity” comes in. It is a unique solution that uses the power of decentralized networks to verify and confirm the identities of people.
Proof of Humanity is an innovative idea that uses blockchain technology to confirm and validate people’s identities in a way that can’t be changed.
Proof of Humanity is different from traditional ways of verifying identities, which rely on centralized authorities. Instead, it gives power to the network participants as a whole. It makes sure that each person is real, unique, and worthy of having a digital presence.
How does Proof of Humanity (PoH) work?
Proof of Humanity operates on the principle of social consensus and relies on a distributed network of participants to verify the authenticity of individuals.
The process involves the following steps:
Submission of Identity Proofs:
In the Proof of Humanity system, a person who wants to establish their digital identity must submit different proofs of their identity. Some of these proofs are biometric, like fingerprints or facial recognition. Others are social media profiles or other information that can be checked to show that the person is a real person.
Validators in the Proof of Humanity network are very important to the process of verification. These validators are in charge of looking at the submitted proofs of identity and agreeing on whether or not they are real. Validators are given incentives to do thorough evaluations, which helps keep the system’s integrity.
In Proof of Humanity, the way to reach a consensus is for validators to look over the submitted proofs and compare them to each other. To stop Sybil’s attacks and other types of fraud, validators look at the proofs together and agree on whether or not the person’s identity is real. This decentralized validation process makes sure everything is correct and keeps there from being a single point of failure.
Approval of Digital Identity:
Once all the validators agree on something, the person’s digital identity is confirmed to be real and reliable. This approval is written to the blockchain, making an unchangeable record of the person’s identity.
Challenge Suspicious Users:
Humans may challenge pending submissions that they don’t think meet the criteria for acceptance. When a submission is questioned, a dispute resolution system that follows ERC792, like Kleros, makes a decision.
Access to Decentralized Services:
People can use a wide range of decentralized services and apps if they have a verified digital identity. They can safely interact with the digital world without giving up their privacy or having to rely on centralized middlemen.
But, What’s wrong with traditional KYC?
Financial institutions use KYC standards to find out who their customers are and look at risk factors that could point to a scammer. By making sure people are who they say they are, KYC also keeps us all safe from identity theft.
Face recognition, biometric verification, government identification, and showing a utility bill as proof of address are all traditional ways of getting to know someone. Even though these methods work, they are coming under more and more pressure from bad people with AI tools.
It is now possible to get around KYC protections by using technology to make fake identities, forge supporting documents, and even act like real people.
The problem is made worse by the growing demand for financial services, which puts more pressure on compliance teams and makes it more likely that fraudsters will get through. Also, KYC solutions are often centralized and depend on third parties, which makes them easy to hack.
What are some Benefits of Proof of Humanity?
Proof of Humanity brings forth a multitude of benefits that contribute to a more secure, inclusive, and user-centric digital identity landscape:
Enhanced Security and Privacy:
PoH is more secure than traditional identity verification methods because it is more difficult for bots and automated programs to create fake identities. This is because the tasks that are used to verify identity are designed to be difficult for bots to complete, but easy for humans.
Inclusivity and Accessibility:
Proof of Humanity is more privacy-preserving than traditional identity verification methods because it does not require users to share personal information, such as their name, address, or date of birth. Instead, users only need to complete a series of tasks that are designed to verify their humanity.
PoH is more accessible to people who do not have access to traditional identity documents. This is because PoH does not require users to have a government-issued ID or passport.
Resilience against Identity Fraud:
The consensus-based validation process in Proof of Humanity significantly reduces the risk of identity fraud. The requirement for unique and verifiable proof makes it extremely challenging for malicious actors to create fraudulent identities.
Empowerment of Individuals:
Proof of Humanity empowers individuals by putting them in control of their digital identities. Users can selectively share information while maintaining ownership over their data, aligning with the principles of self-sovereign identity.
Decentralized identity systems based on Proof of Humanity can seamlessly integrate with various applications and platforms. This interoperability reduces the need for redundant identity verifications and enhances user experience.
What are Decentralized Identity Solutions?
Identity management and verification are done with the help of solutions that are not centralized. Businesses use decentralized identity to make operations related to identity simpler. This gives end users a way to verify their identity without giving up their privacy. It also reduces the security risks that come with storing identity information, such as personally identifiable information (PII), in one place.
Companies use decentralized identity software to verify or manage the identities of their employees, customers, other end users, and even things like Internet of Things (IoT) devices. Customers and other end users, like employees, benefit from decentralized identity solutions in terms of privacy and ease of use.
Unlike centralized identity management software, which keeps the user’s name, email address, passwords, and other identifiers, decentralized identity management lets the end user keep direct control over their identity information and makes it easy for the company validating the identity to share or take away access to that data.
What are the types of decentralized identity solutions?
Here are some prominent types of decentralized identity solutions:
Self-Sovereign Identity (SSI):
Self-sovereign identity is a type of decentralized identity where individuals have complete control over their identity data. They can store their data in a decentralized wallet and share it with only the entities that need it.
Decentralized Identifiers (DIDs):
Decentralized identity systems comprise many parts, and decentralized identifiers are one of the most important ones. DIDs are unique identifiers that can be found anywhere in the world. They are not tied to a central registry. They let people create and manage digital identities across different platforms and services.
Verifiable Credentials (VCs):
Verifiable credentials are digital proof that a person has certain qualities or claims made about them. Third parties can check these credentials without giving away sensitive information. VCs improve privacy and make it less necessary to share a lot of personal information.
Here are some examples of decentralized identity solutions that are currently being used or developed:
- Microsoft Entra Verified ID: This decentralized identity solution from Microsoft allows individuals to control their identity data and share it with only the entities that need it.
- SecureKey: This is a company that provides decentralized identity solutions for businesses. SecureKey’s solutions use blockchain technology to store and manage identity data.
- IBM Verify Credentials: This decentralized identity solution from IBM allows individuals to create and manage their Verifiable Credentials.
- Workday Credentials: This decentralized identity solution from Workday allows businesses to issue and manage Verifiable Credentials for their employees.
- Worldcoin: Worldcoin is a digital identity platform that wants to make it easy for everyone to prove that they are real people and not bots or AI algorithms. It built its digital passport system with cryptographic and blockchain tools that are used in the wider world of cryptocurrency. It also works with the WLD crypto token and has a platform for making payments.
- Credify: This is a company that provides decentralized identity solutions for financial institutions. Credify’s solutions use blockchain technology to verify the identity of customers and prevent fraud.
Digital identities that are safe and can be checked are very important in a digital world that is always changing. Proof of Humanity is an example of a new way of doing things. It shows the way to decentralized identity systems that put security, diversity, and user control first.
By using the power of blockchain and social consensus, this idea makes it possible for people to have full control over their digital presence in the future.
As we move into the age of decentralized identity, Proof of Humanity will become more important and change how we interact, do business, and use the digital world.
FAQs on Proof of Humanity
Q: Is Proof of Humanity compatible with existing identity systems?
Yes, Proof of Humanity is designed to be interoperable with various identity systems, allowing for a smooth transition towards decentralized identity solutions.
Q: How does Proof of Humanity prevent Sybil attacks?
Sybil attacks involve creating multiple fake identities to manipulate a system. Proof of Humanity combats this by requiring unique and verifiable proofs from each individual, making it incredibly challenging to create fraudulent identities at scale.
Q: Can my personal information be accessed by anyone on the blockchain?
No, personal information is encrypted on the blockchain and can only be accessed with the individual’s consent. The decentralized nature of Proof of Humanity enhances data privacy.
Q: What role do validators play in the Proof of Humanity network?
Validators play a critical role in verifying submitted proofs and reaching a consensus regarding the authenticity of individuals. Their participation ensures the integrity of the decentralized identity ecosystem.