Current challenges in user identification and bot attacks on token distributions present significant hurdles for the Web3 ecosystem. The application of zero-knowledge technologies emerges as a potential solution to these problems.
Current Token and Governance Issues
Every month, token distributions face coordinated bot attacks. Automated programs claim a significant portion of tokens, leaving real users frustrated. This situation is seen across various projects, from Kaito to Magic Eden. The manipulation of governance systems is also rising, where single entities control multiple accounts to sway voting outcomes.
The Privacy Paradox in Web3
Web3 offers decentralized systems that preserve user privacy, encountering difficulties in verifying clients. Current solutions like KYC are intrusive and create centralized data repositories, while spam prevention mechanisms fail against bot attacks. Users want to maintain the privacy of their financial and personal data, highlighting the need for a new approach.
Solutions Leveraging Zero-Knowledge
Zero-knowledge technologies provide a solution to this issue, allowing users to prove facts about themselves without revealing personal information. Examples include verifying identity without sharing sensitive data, ensuring protection against attacks. These technologies enable Sybil-resistant systems while preserving privacy principles.
Thus, zero-knowledge technologies represent a promising solution to the identity crisis in Web3, facilitating reliable user verification without compromising their personal information. This aids in the development of decentralized systems where personal data remains protected.
