📄PoP and KYC
PoP
In the blockchain domain, wallet addresses serve as representatives of user identity. However, since individuals can create an unlimited number of wallet addresses using cryptographic technology, it's possible for one person to construct multiple unrelated user identities within the blockchain world. A common exploitation of multiple false identities is the "Sybil attack." This type of attack is particularly prominent in peer-to-peer networks, hence the term is widely used in the blockchain sector. Typical examples include using a large number of cost-free created wallet addresses to obtain more airdrops or to forge voting rights.
Proof of Personhood (PoP) is a method to resist "Sybil attacks." The concept of PoP originally comes from a paper by Vitalik Buterin in 2014 titled Problems[1], where he explored the possibility of creating a "unique identity system." He proposed that a unique identity system would provide every human user with a unique token to prevent Sybil attacks. The term Proof of Personhood first appeared in a paper[2] in 2017, featuring the following characteristics:
Combining cryptographic signatures to achieve pseudonymity presentation.
Token credentials.
Proof of Personhood (PoP) can be implemented in various ways. For example, WorldCoin uses physical devices to collect iris scans of the eye and binds them to a unique address; Gitcoin Passport proves the high probability of a user being unique by binding multiple Web3 addresses/Web2 accounts; Civic provides online non-robot verification, live verification, and identity document collection among other methods for personhood verification.
In our design, the PoP proof in ME Network is no longer a simple method with just token credentials and cryptographic signatures. PoP proof is an integral part of building the underlying identity protocol for ME Network.
Through PoP, ME Network can ensure that participants in the online world are real, unique individuals, not robots. This is the foundation of our endeavor to create a fair digital universe and is a prerequisite for the realization of the ME Network economic model.
KYC
KYC (Know Your Customer) is a process businesses use to verify the identity of their clients, aimed at preventing identity theft, financial fraud, money laundering, and terrorism financing, among other illicit activities. It is increasingly emphasized globally. Not only traditional financial institutions require KYC, but many business scenarios in the cryptocurrency domain also necessitate strict KYC procedures.
To better support applications like Real-World Assets (RWA), the metaverse, and others, the PoP utilized by ME Network requires KYC to prove legality and compliance in the off-chain, real world. Furthermore, users have the option to migrate their Web2 world identity tags, digital assets, and even credentials from other Web3 ecosystems to ME Network, participating in on-chain and off-chain integrated business activities.
However, the KYC process involves a high level of privacy, presenting a natural contradiction with the blockchain's public anonymity. To protect individual privacy, one cannot fully expose real-world personal information on the blockchain, as it is entirely public.
Therefore, the identity system natively built into ME Network requires not just PoP but also a foundation on the concept of DID (Decentralized Identity), to establish a decentralized system that can issue and verify various types of identity proofs while protecting user privacy.
[1] Vitalik Buterin. Problems. 2014
[2] Maria Borge, Eleftherios Kokoris-Kogias, Philipp Jovanovic,Linus Gasser, Nicolas Gailly, Bryan Ford. Proof-of-Personhood: Redemocratizing Permissionless Cryptocurrencies. 2017
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