Can Zero-Knowledge Proofs Solve the Privacy Leakage Problem in Web2 KYC?

Zero-Knowledge ProofKYCPrivacy ProtectionWeb2Data Security
Created At: 8/8/2025Updated At: 8/18/2025
Answer (1)

Okay, no problem. Let me break down the issue of Zero-Knowledge Proofs (ZKPs) and KYC privacy leaks for you.

Can Zero-Knowledge Proofs Solve Privacy Leaks in Web2 KYC?

The short answer: Yes, but it's not a ready-made "silver bullet" we can deploy today. It's more like a "key" we've just acquired, capable of unlocking the door to future privacy protection.

First, let's talk about how flawed the current system is. That will help you understand why we need this "key".

Current KYC: A Case of "Privacy Exposure"

You've definitely been through this process:

Every time you register for a new app or platform (like an exchange or banking app), don't you have to upload your ID photo again and do facial recognition?

This process is called KYC (Know Your Customer), meaning platforms must verify your identity as required by regulators to prevent crimes like money laundering.

Sounds reasonable, right? So where's the problem?

The problem is that your ID information, home address, phone number, even your "high-definition selfie," gets copied onto countless companies' servers. You're handing over your vital personal data to these platforms' "data safes."

But are these "safes" really safe? News reports frequently expose platforms suffering "data breaches" where databases are hacked. When this happens, your privacy is effectively exposed online, packaged and sold to various black markets. Then you start getting all those spam calls and junk messages.

Core Pain Point: To prove "I am me," I have to hand over all my information, and I have to do it over and over again.

Zero-Knowledge Proofs (ZKPs): Prove Only What You Need, Reveal Nothing Extra

Now, let's introduce our main character: Zero-Knowledge Proofs (ZKPs).

Don't be intimidated by the name. What it does is actually quite easy to understand. Let me give you an analogy:

Scenario: You go to a bar, and the bouncer needs to check if you're of legal age.

  • Current Way (Web2 KYC): You hand your ID to the bouncer. The bouncer not only sees your birthdate, confirming you're old enough, but also incidentally sees your name, address, ethnicity, even that slightly awkward ID photo. All your information is exposed.

  • ZKP Way: You don't hand over your ID. You present a "magic card" (this is the zero-knowledge proof) and swipe it on the bouncer's device. The device beeps, and the screen displays only one line: "This person is over 18."

The bouncer is convinced you are of legal age through this "magic card," but they do not know your exact birthday, your name, or where you live.

See how it works? Zero-Knowledge Proofs are this kind of magic. They allow you to:

Prove to someone that a statement is true without revealing any extra information whatsoever.

Applied to KYC, it would work like this:

  1. You go to a trusted authority (like a government identity system) for a one-time verification of your identity information.
  2. This authority, based on your information, generates one or more "zero-knowledge proofs" for you (like the "magic cards" above). For example, one proof for "over 18," one for "is a Chinese citizen," etc.
  3. In the future, whenever any app requires KYC from you:
    • If it needs to verify your age, you give it the "over 18" proof.
    • If it needs to verify your nationality, you give it the "is a Chinese citizen" proof.

Throughout this process, the app only knows "you meet its requirement," but it never gets your raw ID data. Your private data stays securely in your own hands, and you no longer have to worry about it being leaked by the platform.

The Vision is Rosy, But What About Reality?

In theory, ZKPs are a near-perfect solution. So why aren't we using them yet? Because they still face several practical challenges:

  1. Who Acts as the "Trusted Issuing Authority"? The entity generating these "magic cards" needs to be universally trusted, right? A government department? A tech giant? This involves issues of trust, standards, and infrastructure – it's not purely a technical problem.

  2. Technical and Cost Challenges Generating a "proof" consumes significant computational resources, which could be a burden for mobile apps. The verification process might also be slow. The good news is that technology is advancing rapidly, and cost and efficiency issues are being progressively solved.

  3. Regulatory and Legal Lag Regulators are used to "seeing is believing." They need access to raw data for audits. Will they accept this new model of "seeing only the proof, not the data"? This requires updates to laws and regulations and building societal consensus.

  4. User Habits and Education It will take time for people to understand and accept this new concept. After all, uploading IDs has become muscle memory.

To Summarize

So, back to the original question: Can Zero-Knowledge Proofs solve privacy leaks in Web2 KYC?

The answer is a definite yes.

It fundamentally changes the logic of data verification, returning ownership and control of data to the user. It's not patching up the existing, leaky house; it's giving us a completely new, secure "blueprint."

Although turning this blueprint fully into reality still requires solving issues of trust, cost, regulation, and more, it points us in a clear direction: a future where we can enjoy convenient internet services without having to trade our personal privacy.

So, next time someone mentions Zero-Knowledge Proofs, you can tell them this technology might just be the "magic tool" we use to protect our online privacy in the future.

Created At: 08-09 03:37:01Updated At: 08-10 03:16:38