ZK-Proofs Gain Popularity in Decentralized Identity Products, But Technical Complexity Hinders Government Adoption

According to Cointelegraph, zero-knowledge (ZK) proofs, a method of verifying information without revealing its specific contents, have gained popularity in creating decentralized identity products.

Decentralized identity (DID) solutions have been gaining traction, particularly with the use of zero-knowledge (ZK) proofs. However, the technical complexity of ZK-proofs poses challenges in government and institutional adoption.

According to Ingo Rübe, CEO and co-founder of KILT Protocol, decentralized identifiers, such as biometric data, can be selectively shared and verified on-chain using Merkle Trees. This method, which is easily understood by computer scientists, offers greater ease, speed, and efficiency compared to ZK-proofs.

Rübe also highlights the risks associated with the open-source software commonly used in ZK solutions. Companies often rely on third-party libraries without clear accountability, which could lead to massive data breaches.

He emphasizes the importance of using public permissionless blockchains to store credential validity, enabling users to own and create their digital identifiers, which are stored locally and verified through decentralized networks.

In 2022, the World Wide Web Consortium (W3C) developed a standard for decentralized identity solutions, underscoring the growing interest in this field.

Despite the technical barriers, several entities are exploring ZK-powered identity solutions. In October 2024, Buenos Aires announced the rollout of decentralized identification for residents using ZKsync Era.

Additionally, on October 17, World, formerly known as Worldcoin (WLD), introduced the next generation of biometric data-collecting orbs and the World ID Credentials program. This initiative will allow individuals with NFT-enabled government passports to register their identity in the World system.

Rübe notes that different approaches to decentralized identity solutions, including ZK-proofs, are suitable for various use cases. However, he likens the use of ZK-proofs for decentralized identity to “taking a bazooka and trying to kill a fly,” indicating that simpler methods might be more effective for certain applications.