Ankr Unlocks DeFi Compliance with Zero-Knowledge ID Product

Ankr unveils new product to enable DeFi products comply with regulations.

Man in a magical underwater land, throwing an ANKR coin frisbee.
Created by Kornelija Poderskytė from DailyCoin
  • Ankr has unveiled a new product dubbed Ankr Verify.
  • Ankr Verify promises to clear the path to compliance for decentralized protocols.
  • Right out of the gate, at least three projects already leverage the product.

As regulators worldwide race to rein in the fast-moving crypto markets, the immediate focus has been on stablecoins and centralized exchanges due to the Terra crash and the FTX collapse. However, it is clear that policymakers also intend to set their sights on DeFi eventually.

But with a lack of intermediaries and a focus on privacy, for many, it has remained unclear how regulators would ensure compliance in DeFi.

Sponsored

Enter Ankr Verify, the latest product from Web3 infrastructure firm Ankr. Ankr Verify promises to allow decentralized protocols to maintain privacy while ensuring compliance with regulations.

Ankr Unveils Ankr Verify 

In a press release on Tuesday, December 12, Ankr announced the launch of Ankr Verify. The firm claimed this product would allow decentralized protocols to set entry criteria through zero-knowledge-based user identity verification.

As explained by Ankr, the user identification product will allow users to be compliant without sacrificing user privacy. The product works with the help of Ankr’s KYC partner Synaps. 

To gain access to protocols using Ankr, all users must do is provide proof of their identity to Synaps. However, Synaps will be the only one to access this data. All the protocol would get is a yes or no answer to validate whether the user has met the entry requirements. Ankr noted that users only need to go through this verification process once to use all Ankr Verify supported protocols.

Sponsored

Ankr Senior Product Manager Kev Silk noted:

Ankr Verify is not only a useful tool for businesses and blockchain foundations to place permissions on their networks and applications. Rather, it’s a new standard for easy Web3 user identification similar to what single sign-on did for the web. With a single, secure passport to Web3, users can access decentralized experiences without the headache of continuously uploading documents with their vulnerable personal data.” 

Per the press release, projects like Eclipse, Tomi, and Mina Protocol already use Ankr verify.

On the Flipside 

  • Ankr’s use of a single KYC firm may spark centralization concerns.
  • Ankr is not the only firm offering on-chain compliance solutions. micapass also offers a similar solution.

Why This Matters

Solutions like Ankr Verify will likely play a key role in allowing DeFi protocols to maintain privacy while ensuring compliance as regulators hone in.

Read this for more on Ankr:
Ankr and Optimism Unite for Ethereum App Scaling

Polygon Labs is making a big addition to the CDK. Find out more:
Polygon Boosts Layer 2 Kit With Celestia Data Availability

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.