The need for pro-privacy smart contract infrastructure in DeFi-to-real-world lending has never been greater. The Secret Network offers a potential solution
Having looked at a lot of KYC integrations w/ TrueFi, couple issues we've come into. specifically with the different passport providers in the market.
1) Each pool/portfolio, etc. that is accepting the KYC needs to be familiar with the issuers' procedures for KYC'ing. For example, KYC_Firm_A and KYC_Firm_B might do very different processes on each individual going through
2) KYC often needs to be refreshed (~12 months) so need a way to "remove" KYC'd status from an individual address.
3) Liability still lies with the party that accepts the user, and I don't believe liability lies so much with the issuer.
4) If needed (legal inquiry, etc.), the party accepting the KYC needs to be able to go to the issuer and request the KYC'd addresses supporting docs.
Tough problems to solve, but big rewards for whoever nails it!!
2. When that customer uses a third party service, the third party service does a zkKYC check for their jurisdiction and gets back a parameter that says whether that person is clear or blacklisted for that jurisdiction.
3. If the government retrospectively asks who the customer is behind a wallet, how does the third party service trace back that customer? I suppose the KYC firm knows who the wallet traces back to, so the third party service can go back to the KYC firm.
Having looked at a lot of KYC integrations w/ TrueFi, couple issues we've come into. specifically with the different passport providers in the market.
1) Each pool/portfolio, etc. that is accepting the KYC needs to be familiar with the issuers' procedures for KYC'ing. For example, KYC_Firm_A and KYC_Firm_B might do very different processes on each individual going through
2) KYC often needs to be refreshed (~12 months) so need a way to "remove" KYC'd status from an individual address.
3) Liability still lies with the party that accepts the user, and I don't believe liability lies so much with the issuer.
4) If needed (legal inquiry, etc.), the party accepting the KYC needs to be able to go to the issuer and request the KYC'd addresses supporting docs.
Tough problems to solve, but big rewards for whoever nails it!!
Very roughly, is this how zkKYC works?
1. A KYC firm checks a customer's ID
2. When that customer uses a third party service, the third party service does a zkKYC check for their jurisdiction and gets back a parameter that says whether that person is clear or blacklisted for that jurisdiction.
3. If the government retrospectively asks who the customer is behind a wallet, how does the third party service trace back that customer? I suppose the KYC firm knows who the wallet traces back to, so the third party service can go back to the KYC firm.