How do we develop fraud-proof, hard-to-exploit identification system for Hive users without violating their right to privacy?
We need a way to verify and record the true identities of account owners on Hive network without ever revealing the identities to anyone except the account owners. This ofcourse should be optional, and could serve as a kyc replacement, used in site/app authentications, for recoverable accounts, proof of verified accounts with checkmarks, as alternative for doing business transactions with users without sufficient reputation, to use as single account for generating unlimited anonymous sub accounts/addresses, etc. And this should all be done in decentralized manner.
One way to do this safely, I believe, is to have verified or reputable people apply as verifiers. The verifiers will need to appear in certain physical locations to prove they are humans, then sign their own accounts/addresses that they will use during the verification of users, and to prove they are the owners of the accounts. After this, the verifiers accounts are randomly selected on Hive system and individually assigned to users at safe locations globally to verify and record their private information on a decentralize system.
Details of how the verification can be done by verifiers on physical locations globally.
Firstly, a user that wishes to be verified requests for a verifier close to him/her, a verifier is randomly selected and assigned to the user at a certain date. They meet on the day at a safe location, and a special device or the user's phone is used by the verifier to take the picture of the user through the decentralized application. The photo and other information that uniquely identify the user is recorded/stored on the decentralized system, then properly hashed and encrypted. The user copies the decryption keys that are generated which he/she alone will use to decrypt and access the private information. Meanwhile after the verification, the verifiers address is permanently recorded on the user public profile which shows who
did the user's verification. All data/information is synced to network nodes and permanently held by them.
It's important to know that the user's phone may be used for the verification to ensure that the private information only remains with the owner, which is the user. But if the special device from the verifier is used instead, it must be a privacy-friendly one that cannot store the private information on the verifier's device.
Once the verification is completed, the user's account can now display verified checkmark, used for kyc, authentications, for Hive physical ID, etc
