What is proof-of-personhood? Exploring identity in the digital age

2023 has seen many AI innovations emerge, from conversational wonders like ChatGPT to extraordinary feats in generative AI. These advancements have undoubtedly reshaped how we interact, work, and play. But are they also opening the door to fresh challenges?

As AI blurs the lines between reality and fantasy, bad actors find fertile ground to wreak havoc. They exploit these technological marvels to create convincing deep fakes, bypassing stringent identification procedures such as Know Your Customer (KYC).

Some AI-powered tools have given scammers fresh opportunity to orchestrate Sybil attacks, enabling them to spawn countless fake accounts that spread lies, misinformation, and fuel chaos. So what's the solution? How can we reclaim the authenticity and trust these bad actors are eroding?

Some companies are looking into proof-of-personhood (PoP), also known as proof-of-humanity (PoH), as a robust answer to this mounting challenge. But what exactly is PoP, and can it help eliminate bad actors?

What is proof-of-personhood?

In the rapidly growing world of decentralized networks and cryptocurrencies, one challenge stands out: how can the system make sure each participant is a genuine and unique human being, rather than a machine or a person pretending to be multiple individuals? This is where PoP comes in.

PoP is a method used to protect decentralized online platforms, like blockchain and peer-to-peer networks, from attacks involving fake identities. These attacks, known as Sybil attacks, take advantage of the open and democratic nature of decentralized systems, creating multiple fake identities to manipulate voting or rewards.

In simple terms, PoP makes sure each unique human participant gets an equal vote and share of rewards. Unlike other methods, such as proof-of-work or proof-of-stake, PoP does not tie voting power or rewards to economic investment. Instead, it guarantees equal voting power for each human, making the system fairer.

The issue of Sybil attacks, where many virtual identities pretend to be human users, has long been a problem. Some standard solutions, like CAPTCHAs, try to distinguish humans from machines but can be bypassed by humans who solve multiple CAPTCHAs or by advanced AI that can crack the puzzles.

Adding to the complexity, not all people can solve CAPTCHAs due to visual impairments or learning disabilities. Moreover, strict identity checks that might solve the problem conflict with the goals of privacy and easy access, which are highly valued in decentralized systems.

PoP represents a critical effort to make decentralized systems more secure, fair, and accessible. By making sure each participant is unique, PoP promotes equality and reduces the risk of manipulation through fake identities. It's a fascinating area of study that reflects the ongoing challenges and innovations in decentralized technology.

Proof-of-personhood verification examples

5 examples of the verification methods that can be used through proof-of-personhood

Here are some examples of how your identity could be verified through PoP.

Biometric verification

Some platforms employ biometric verification, using facial recognition or other biometric data. For example, WorldCoin scans your iris to confirm your identity. This can be a powerful method, but it raises privacy concerns, as individuals must trust platforms with sensitive personal information.

Physical verification methods

If you love attending Web3 events or physical gatherings, this could be a way to verify your identity. For example, the event may issue attendees a token or NFT to represent their verified status.

Time-locked wallets and activity

This would require users to lock up funds for a particular period to monitor their activity over time, which can provide evidence of uniquely human behavior. This isn't foolproof but can add a layer of verification and help combat Sybil attacks.

Use of zero-knowledge proofs

ZK-Proofs can allow users to prove specific attributes about themselves (such as their age or nationality) without revealing the actual information. This could be part of a decentralized system where users prove their uniqueness without exposing personal details.

Decentralized identity protocols

Some projects are working on blockchain-based identity protocols allowing users to control and prove their identity without relying on a central authority. These protocols can be integrated with various decentralized applications (dApps) to provide consistent proof of personhood across a network.

Proof-of-personhood projects

In recent weeks, Worldcoin has become the focus of attention regarding PoP. However, the idea isn't entirely new. Back in 2014, Vitalik Buterin suggested the challenge of developing a "unique identity system" for cryptocurrencies. It would assign each human user a single, exclusive anti-Sybil participation token.This eventually evolved into PoP, and today, we see a number of projects using the technology. They include the following.

Gitcoin Passport

  • Decentralized identifier

  • Collects 'stamps' from Web2 and Web3 authenticators

  • Stamps serve as credentials

  • Enables cross-platform identity verification without sharing private information

Idena

  • Plays a captcha game at a designated time to prevent multiple participation

  • Part of the game involves creating and verifying captchas

  • Created captchas are then used to verify others

Proof of Humanity (used by Gitcoin Passport)

  • Combines webs of trust with reverse Turing tests

  • Implements dispute resolution

  • Creates a sybil-proof list of humans

BrightID

  • Video call 'verification party' with other users for mutual verification

  • Higher verification levels through the Bitu system

  • Requires enough Bitu-verified users to vouch for you

Worldcoin project's World ID

  • Open, permissionless identity protocol

  • Verifies human identity online anonymously

  • Utilizes zero-knowledge proofs

Circles

  • Verification through vouching by an existing Circles user

  • It doesn't aim for a globally verifiable ID

  • Creates a graph of trust relationships

  • Trustworthiness is verified based on individual position in the trust graph

Civic Pass

  • Offers on-chain and cross-chain identity management

  • Available to businesses, users, developers

  • Enables Web3 trust with access control in dApps, DeFi, NFTs, etc

  • Includes automated market makers

  • Allows users to own portable identity for effortless decentralized web exploration

What are the challenges with proof-of-personhood?

PoP provides inventive ways to confirm digital identity and authentication for individuals. And although these technologies offer significant promise, it's important to recognize the areas of concern identified by some critics.

Privacy concerns

Protecting personal information through PoP is fundamental, and ZK-Proofs can help alleviate some privacy concerns. However, individuals may still be hesitant to participate without guarantees that their personal data is being handled correctly.

Cost and complexity

Building and maintaining a decentralized PoP system that is secure, reliable, and universally accepted could be costly and technically challenging.

Biometrics

Using biometrics (like facial recognition) can lead to unique identification but also raises privacy concerns and issues if biometric data is stolen or misused.

Authentication errors

Similar to any authentication platform, there's a risk that PoP may produce a false negative (a real person is denied authentication) or a false positive (a non-human entity is authenticated), which can undermine the effectiveness and fairness of the platform.

The final word

PoP represents an inventive approach to digital identity and authentication, focusing on the uniqueness of individual human users. While it offers a new paradigm with the potential to reshape online interactions, it's essential to recognize that PoP may not be a one-size-fits-all solution.

The concept's novelty and potential benefits must be weighed against its limitations, and caution should be exercised in its implementation. The challenges inherent in PoP highlight the complexity of creating universal solutions in the ever-evolving digital identity landscape.

Disclaimer:

THIS ARTICLE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO PROVIDE ANY INVESTMENT, TAX, OR LEGAL ADVICE, NOR SHOULD IT BE CONSIDERED AN OFFER TO PURCHASE OR SELL OR HOLD DIGITAL ASSETS. DIGITAL ASSET HOLDINGS, INCLUDING STABLECOINS, INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY, AND CAN EVEN BECOME WORTHLESS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING OR HOLDING DIGITAL ASSETS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. PLEASE CONSULT YOUR LEGAL/TAX/INVESTMENT PROFESSIONAL FOR QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCES.

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