Polygon Launches ID Solution to Promote Safe KYC and AML

Summary:
• Polygon ID uses zero-knowledge proof, which enables sharing of information while maintaining safe custody of sensitive user information.

Polygon, an Ethereum Layer-2 scaling protocol, has introduced Polygon ID, a decentralised identity system that requires no prior knowledge of the user’s true identity. Individuals can use Polygon ID to confirm their identities or credentials without disclosing any private data. Also, the functionality facilitates Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, which reinforce the regulatory environment and allows web2 and web3 industries to comply.

Zero-Knowledge proof and what Polygon ID brings

Polygon is a scaling solution for the Ethereum blockchain that operates as a sidechain, resulting in near-instant transactions with minimal fees. The MATIC token is the fuel for the Polygon ecosystem. After almost a year of development in a closed-source environment, the Polygon ID functionality is now available to the public.

The Polygon ID relies on zero-knowledge proofs, which enable authentication while keeping the underlying data secret. It supports Polygon’s wallet and may prove useful for KYC procedures, permissioned DeFi platforms, and fiat payments for on-and-off ramp, among other compliance use cases. The combination of functionality and security is likely to give Polygon an edge over competitor Layer 2 solutions in the market.

Polygon ID is a decentralised, private on-chain verification solution that is also composable, thanks to its usage of zk proofs. Developers may leverage the new Polygon ID toolset to enable functions like an improved signup UI, help with regulatory compliance, authenticate user identities, and gate access to specific sections or features. This is especially important in an era where regulatory requirements are tightening, while users also want assurances over their privacy.

Well-established projects like Aave and Curve have onboarded Polygon’s chain because of its attractiveness and efficiency as an alternative to Ethereum. With zero-knowledge technology, users don’t need to manually enter their personal information into dozens of different websites and apps. This is a major advantage for networks using the technology and is also one of the functionalities considered most promising for blockchain technology.