Decentralized Identity (DID) and Zero-Knowledge Proof (ZKP) technology stack, The Backbone of Parami’s AD 3.0

We’ve grown accustomed to how huge banks and other businesses access and use our personal information to provide us with a better experience in recent years. We’ve given them access to utilize our sensitive information to help us survive in a certain way over time.

But, with the introduction of Blockchain technology, everything changed. The idea is to foster immutability, transparency, decentralization, and a distributed ledger where users can operate anonymously while performing high-security transactions. In basic terms, blockchain returned users’ control over their privacy and future.

However, has Blockchain been successful in this endeavor? The answer is NO.

Public databases are used by many blockchain networks. As a result, anyone with an internet connection can see the network’s transaction history. Aside from the user name, the transaction data as well as your wallet information will be accessible to anyone. Instead, user identity will appear as a public key, which is a one-of-a-kind code that represents a user on the blockchain network.

In this way, the public key generated via cryptography protects your privacy to some extent. However, different methods of exposure may be used to expose the identity behind it. Hence, the unidentified cover is blown, dispelling the notion of Blockchain’s anonymity and privacy, and revealing that — sensitive information kept on a Blockchain network is only secret, not anonymous.

Similarly, other blockchain networks are managed by consensus algorithms to provide high-end privacy and stability, but decentralization is a secondary concern in these circumstances. In many of these situations, the two sides are distrustful of one another.

This raises the question of whether or not Blockchain networks can be anonymous. And how can Blockchain provide its users with increased anonymity and privacy protection?

With leading risks such as transaction crime, personality theft, password violations, and other cyber-attacks exposing personal data and leaving account owners vulnerable, organizations and individuals must take steps to secure their users/own data and privacy in digital interactions.

Parami Protocol, a Web 3.0 pathfinder of privacy and data sovereignty, bridge the gap by ensuring data privacy is protected, sharing data with owner’s consent, and securing transactions with blockchain-based emerging solutions like Zero-knowledge identity proof (ZKP), Decentralized Identity (DID), and validation domain, all while improving the overall user experience.

Parami Protocol

Parami is a prominent community-based initiative that has developed an unparalleled privacy-protective, influence-monetizing, and attention-efficient advertising paradigm that is ready for the Web 3.0 age. The Parami network is powered by blockchain and the team expresses optimism in decentralized governance and values community consensus as an integral aspect of the project.

Parami, being a parachain based on Substrate, has two technical stacks in its backbone to provide users with privacy. The first is Decentralised Identity Management, which consists of a single parami Layer and is in charge of the registry, update, and revocation functions. DID is a platform that aggregates both social media and blockchain identities. User data is protected by Zero-Knowledge Identity Proof. They will be investigated further to have a better understanding of why similar methods are required in other digital endeavors.

Decentralized Identity (DID)

Also known as Self-sovereign Identification, Decentralized Identity, is a new type of identity that’s user-centric, created, owned, and controlled by individuals of their own volition. Each user is identifiable with a globally distinct Decentralized Identifier. Every DID has cryptographic content connected with it that aids in the authentication of users and the verification of credentials that are issued to or provided by them.

A decentralized identification system’s backbone is a distributed ledger, sometimes known as a blockchain. Businesses’ publicly stated DIDs are stored on a distributed ledger, or blockchain, and are managed by their owners. User DIDs can be private or public, but they are usually private.

Users can reinforce their decentralized identity by obtaining credentials digitally from a variety of issuers, including government agencies, educational institutions, and so on. The credentials are obtained and kept in an identity wallet in a digital format. They can also be given to other entities that can perform digital verifications. The blockchain-powered decentralized identity provides a powerful framework for realizing the idea of digitally verifiable credentials.

Zero-Knowledge identity Proof (ZKP)

Identity-based on Zero-Knowledge Proof is used to describe an authentication process in which one party proves to the other that they have a specific piece of information that establishes ownership of the identity. The prover verifies the required data without providing any more sensitive or personal data. This ensures that you retain control over your sensitive personal information.

The verifier is notified that the prover has the necessary information to validate his identity using zero-knowledge proof (ZKP). The approach was developed by MIT researchers in the 1980s and is now utilized to improve blockchain functioning. There are two types of zero-knowledge identification proof: Interactive and Non-Interactive.

In the interactive version, the prover must perform a series of tasks to validate his or her knowledge of certain facts. To give a self-sovereign identity, the method frequently utilizes mathematical probability principles. A non-interactive zero-knowledge proof uses decentralized identity management and does not require interaction between the prover and the verifier.

The following three prerequisites involved the two forms of zero-knowledge proof:

• Soundness: if the prover provides wrong or no information, the verifier will be unable to be persuaded because the statement cannot be falsified.
• Completeness: When the proper assertion is submitted, the verifier is confident that the prover has all of the required information.
• Zero-knowledge: the verifier is unable to learn any additional information about the prover, ensuring that personal and sensitive data remain anonymous.

Parami uses DID and ZKP to provide the following solutions

• To create customer-centric ad system: Parami offers users a decentralized identity solution based on the W3C standard DID (Decentralized Identity), which aggregates users’ social media identities from other platforms and decentralized identities from other chains under this decentralized identity to create a more comprehensive digital identity base.

Simultaneously, Parami empowers users with a light wallet based on social media platforms and a DID Avatar solution integrated into social avatars, allowing users to interact with advertisements in social media platforms’ browsers and have the revenue credited to their wallets, which is more convenient to use and easier for users to get into.

• To attract traffic on Web3.0: Web3.0 traffic, as far as Parami is concerned, is no longer traffic aggregation based on APPs or websites, but traffic aggregation based on people (KOL, Creator, Community Owner). For these DAOs, Parami will give a social coin-based community member value connection.

DAO members often have a common label, therefore advertising and payment methods based on this attribute will be more targeted. In a way, advertising for a DAO is equivalent to purchasing the social influence of all DAO members.

• To improve digital advertising’s return on investment: On this foundation, Parami will abstract a user preference data model based on on-chain data, which will be used for user incentive marketing of blockchain projects as well as the future entry of traditional internet products.

Parami builds a PCAP (Personal Crypto Advertising Preference) based on user DIDs, which is a homomorphically encrypted user advertising preference profile (user profile) that records the user’s labels and their values in different dimensions, using zero-knowledge proofs, blind signatures, and other privacy computing techniques.

When an advertiser gives a user a discount, the advertiser reserves the right to rate the user on the related label. This ensures that the scoring process is updated in a homomorphic encryption manner thanks to the homomorphic encryption feature. When a user engages with an ad and receives a reward, the user demonstrates that they do not know their tag/label data. This allows advertisers to profit from consumers’ ad preferences while maintaining their privacy. The payment is a reward for the users’ attention, while the preference is for better matching ads and users.

Conclusion

The value that Parami Protocol brings to the advertising market and blockchain technology, in general, cannot be overstated. Its purpose is to transfer value to consumers by making the interface simple to use and allowing users to engage with adverts in social media apps’ browsers and get rewarded.

Get to know more about the project:

Official Website: https://parami.io/

Twitter: https://twitter.com/ParamiProtocol

Discord Community: https://discord.gg/bxFuekgvYJ

Medium Blog: https://paramiprotocol.medium.com/

Telegram Community: https://t.me/ParamiProtocolEN