Online verification of user identity code learning

Short answer questions

What is the subject of the application?

Explain the role of the verifier in the identity verification system.

How is the Merkle tree (hash tree) used to manage user PII?

How does the requester verify the authenticity of the PII provided by the user?

How does the token economy ensure that the user controls their PII?

What is the use of smart contracts in the identity verification system?

Explain the different roles that service providers can play in the identity verification system.

How does the identity verification system incentivize the verifier to provide accurate proofs?

What is a non-cooperative game and how does it relate to the identity verification system?

How is the equity mechanism important in maintaining the right incentives in the identity verification system?

Short answer questions answer

The subject of the application is a user identity code system for online verification, which uses blockchain technology to securely store and verify identity information without sharing PII between parties.

The verifier is a trusted entity in the identity verification system that is responsible for verifying the user's PII. The verifier can be a bank, government agency, or other reputable organization.

Merkle trees allow for efficient and secure verification of the contents of large data structures. In the identity verification system, PII is organized into a Merkle tree, allowing users to selectively share certain parts of PII without revealing unnecessary information.

The requester uses the PII received from the user and information about the verifier (such as the verifier's public key) to independently verify the authenticity of the data on the proof blockchain.

The token economy system requires users to give consent before any identity verification transaction is completed between the verifier and the requester, thereby ensuring the user's control over their PII.

Smart contracts are used to automatically execute agreements in the identity verification system. For example, smart contracts can be used to escrow payments between users, verifiers, and requesters.

Service providers can play the role of users, verifiers, or requesters in the identity verification system. This allows for flexible interactions in different identity verification scenarios.

The identity verification system incentivizes verifiers by rewarding accuracy and punishing false behavior. Verifiers earn tokens by providing reliable proofs and are punished if they provide incorrect proofs.

Non-cooperative games are games in which there is competition among individual participants and only self-enforced alliances are possible due to the lack of external means to enforce cooperative behavior. The identity verification system can be modeled as a non-cooperative game where validators and requesters are rational players that aim to maximize their own utility.

Stake mechanisms require validators to hold a defined number of tokens in order to participate in the system. This ensures that validators have a stake in the game and incentivizes them to behave honestly, as dishonest behavior may result in the loss of their stake.

Key Glossary

Term Definitions Proof A statement made by a validator about the accuracy and origin of a user's PII. Proof A decentralized and immutable ledger used by a blockchain to record proofs. Decentralized Identifier (DID) An identifier that allows users to create and control their own digital identity. Digital Identity A representation of an individual or organization in the digital world. Digital Wallet A software application used to store and manage digital identities and assets. Hash Tree A data structure that allows for efficient and secure verification of the contents of large data sets. Authentication The act of confirming the identity of an individual or organization. Key Pair A combination of a public and private key used to encrypt and decrypt data. Know Your Customer (KYC) The process of verifying the identity of a customer to prevent fraud and money laundering. Merkle Root The root hash of a hash tree that acts as a fingerprint of the integrity of the underlying data. MetadataData that provides (structured) information about other data. MultisigA digital signature scheme that requires more than one key to authorize a transaction. PIIPersonally Identifiable Information, any information that can be used to identify an individual. Public Key Infrastructure (PKI)A system for managing and issuing digital certificates for authentication and encryption. RequesterAn entity that requests verification of a user's PII. Own IdentityAn identity model that allows individuals to control their own identity data. Smart ContractsSelf-executing contracts that are stored on the blockchain and automatically executed when certain conditions are met. Token EconomyA system that uses tokens to incentivize and reward network participants. VerifierA trusted entity responsible for verifying a user's PII.