European Parliament Approves Digital Identity Framework which uses Zero-Knowledge Proofs

Yesterday, March 16th, the European Parliament gave a green light to the EU digital identity framework. This European Digital Identity will be accessible to all EU citizens and can be used across Europe to access documents such as driver’s licenses and birth certificates, as well as apply for loans and open bank accounts.

The proposed European Digital Identity will use zero-knowledge proof (ZK-Proof) tech to keep digital wallets safe.

ZK-Proof technology means users can verify information without sharing any sensitive data, giving a high level of privacy protection. This tech is crucial for safeguarding digital identities, particularly for those who are concerned about privacy violations. The idea for ZK-Proofs was developed in a 1985 paper, written by Shafi Goldwasser, Charles Rackoff and the founder of the Algorand blockchain, Silvio Micali.

Despite the advantages of the new framework, some blockchain industry advocates expressed concerns about the removal of language around electronic ledgers.

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The framework passed with 418 votes in favor and 103 against. It will now move on to what is known as the “trilogues” – and will be debated between the other EU institutions, including the Council and Commission.