Feb 16, 2023
EU Lawmakers Embrace Privacy with Zero-Knowledge Proofs
The European Union is renowned for its complex relationship with privacy – on the one hand, it was the first place in the world to apply strict data protection regulations. On the other hand, its central bank digital currency (CBDC) project lacks the anonymity standards of private cryptocurrencies.
Last week, however, EU lawmakers made a significant step towards embracing privacy in the space of citizens’ digital identities. On Feb. 9, the Industry, Research and Energy Committee included the standard of zero-knowledge proofs in its amendments to the European digital identity framework (eID). The latest update was voted in by 55 votes to 8 in the committee, and the draft will now proceed to the trilogue phase of negotiations.
The press release states that EU citizens would be granted full control of their data, with the option to decide what information to share and with whom. This would enable 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.
Zero-knowledge proofs have recently been the focus of researchers’ attention as a possible means to ensure regulatory compliance and privacy in digital currencies. The joint paper by the San Francisco-based Mina Foundation, operator 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 zero proofs could be connected to Europe’s eIDAS electronic identity system.
Not everyone is convinced by this solution, however. Balázs Némethi, the CEO of Veri Labs and a co-founder of kycDAO, wrote for Cointelegraph that when proofs alone are insufficient and personal information sharing between the participants of a transaction is essential, relying only on off-chain solutions is advised.
The implications of the EU’s embrace of zero-knowledge proofs could be far-reaching. For example, it could pave the way for the promotion of Non-Fungible Tokens (NFTs) and other crypto assets. NFTs are unique digital assets that are used to represent real-world assets, such as art, music, and collectibles. With the help of zero-knowledge proofs, users could securely and privately store their NFTs, while also being able to prove ownership.
Furthermore, the use of zero-knowledge proofs could also open up new opportunities for NFT marketing. With the help of zero-knowledge proofs, NFT marketers could securely and privately promote their products on social media platforms, such as Twitter, without having to worry about their data being compromised. This could lead to the emergence of specialized NFT marketing agencies that specialize in zero-knowledge proof-based NFT promotion.
Finally, the use of zero-knowledge proofs could also enable businesses to securely and privately sell NFTs to customers, without having to worry about their data being compromised. This could open up new opportunities for businesses to securely and privately sell their NFTs to customers, without having to worry about their data being compromised.
In conclusion, the EU’s embrace of zero-knowledge proofs could open up a range of new opportunities in the web3 space, such as NFT promotion and selling, as well as providing users with a secure and private way to store and prove ownership of their digital assets.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.