Zero-knowledge (ZK) proofs could enhance privacy and security in the European Union (EU) new digital identity regulation, transforming digital identity management.
The European Union is revolutionizing digital identity management with the implementation of a new digital identity regulation. This regulation mandates that all member states provide at least one EU digital identity wallet to every citizen and resident. With this initiative, the EU aims to transform how its citizens live and work, facilitating the use of digital ID wallets for electronically signing and storing various documents, from university diplomas to train tickets.
Enhancing Privacy and Security with ZK-Proofs
Dr. Jonas Gross, CEO of Hakata, believes that zero-knowledge proofs (ZKPs) could play a crucial role in enhancing privacy and security within the EU’s digital identity framework. As the EU updates its European Digital Identity (EUDI) regulation, originally released in February 2023 and slated for full implementation by 2026, ZK technology could provide the necessary privacy-first approach that the regulation demands.
The European Commission has already invested 46 million euros in four large-scale pilots to test the EU Digital Identity Wallet. They have also announced a second call for large-scale pilots to further support the deployment of these wallets. This investment indicates a strong commitment to ensuring that the digital identity wallet will revolutionize how European citizens and businesses engage with online services.
A successful digital identity solution must prioritize user-centric design and privacy-first principles. Dr. Gross emphasizes the importance of ensuring that users maintain ownership of their confidential personal data. Identity data, credentials, attestations, and other personal information should be stored on the user’s device, giving users the power to decide which data to share and with whom. This sovereignty must be a core design principle in the EU identity infrastructure.
The Role of Zero-Knowledge Proofs
To maintain a privacy-first approach and ensure the confidentiality of personal information, zero-knowledge proofs (ZKPs) offer a promising solution. ZKPs allow users to reveal cryptographic proofs instead of clear data, thereby preserving their privacy. This approach has the potential to break down data silos around identity information, creating a new paradigm of compliance.
For instance, consider a scenario where someone wants to buy a glass of wine. Instead of showing a physical EU ID to prove their age, which reveals unnecessary information like address and nationality, someone could use a specific ZK Proof to verify that he/she is over 18. The bartender would only know that the person meets the age requirement, without accessing any additional personal information. This method enhances privacy and security by only exposing proofs instead of clear data.
Overcoming Developer Challenges
Implementing ZKPs at scale presents several challenges for developers. One significant challenge is the lack of standardization in the ZK space, as different ZK tech stacks operate differently, making interoperability a hurdle. Building applications that work across various tech stacks is complex and requires dedicated solutions, such as cloud-based security modules, especially since some cryptographic elements of ZK technology are not yet supported by standard consumer hardware.
Additionally, in many countries, ZK technology is still undergoing security evaluations to ensure its suitability for governmental and regulated services. Overcoming these challenges is crucial for the widespread adoption of ZKPs in digital identity solutions.
Transparency is key to building trust and promoting the adoption of digital identity solutions. Dr. Gross advocates for making reference implementations, such as the EUDI Wallet Reference Implementation, available open-source on platforms like GitHub. This transparency allows tech-savvy individuals to review the source code and verify that it meets the highest privacy standards. By enabling personal verification of privacy features, trust in the solution increases, driving its adoption.
The new regulation requires all member states to provide at least one EUDI wallet to their citizens and make its support mandatory across various industries. This development could reshape the EU’s digital infrastructure and integrate digital identity into all relevant workflows within its digital ecosystem. With the EUDI wallet, concerns about losing a physical ID while abroad could become a thing of the past.