Blockchain-based identity management systems are destined to reshape the way we provide proof to 3rd party platforms requiring checks due to their nature or compliance purposes. Since identity theft is a rampant phenomenon causing millions in damages every year, blockchain technology viably deals with many of the threats, oftentimes facilitating identity verifications without requiring the storage of any personal data.
Please Note: This is a Press Release
Today’s tech is solid, with virtually zero risks, with the exception of those where attackers attempt to gain control over the network. Named after Sybil Dorsett, a woman diagnosed with Dissociative Identity Disorder, successful Sybil attacks pose great threats to blockchain integrity.
With this in mind, the deployment of Sybil resistance efforts is quintessential to assuring security in the emerging blockchain identity market. Numio, a cryptocurrency application serving several purposes like payment processing, identity management, and layer-2 scaling, has introduced an advanced Sybil resistance framework, which we’ll analyse today.
The Dangers of Sybil Attacks
Blockchain systems in general are often prone to Sybil attacks, a form of cybersecurity threat employing the creation of multiple accounts in a bid to gain control over a network. In the blockchain space, attackers often resort to running several ill-willed nodes on the blockchain, effectively out-voting honest nodes and leading to trouble.
An attacker managing multiple Sybil identities is able to refuse transactional processing and block transmission, halting user access to the ledger in question. In the worst case scenario, a highly-advanced Sybil attempt obtaining complete control over the network’s hash rate allows the infamous 51% attack. This leads to dangerous effects like double spending or the reversal of transactions, which would have dire consequences over any network’s trustworthiness. This concept is very prevalent in traditional social websites/platforms like Twitter or Facebook, where you frequently see bots or “troll” accounts attempting to communicate false information, many citing this as “fake news”.
Computer scientists worldwide have dedicated considerable resources to figuring out viable means of mitigating Sybil attacks. Whilst a fool-proof solution is not yet available due to the attack’s particularities, resistance is attained. In the case of proof-of-work, proof-of-stake, and delegated proof-of-stake consensus algorithms within blockchain, Sybil attacks become highly impractical since obtaining ownership of significant network share is insanely expensive, with validators being incentivised to remain honest. In the case of identity management at the application layer, however, risks are more prevalent but still can be viably mitigated through future-proof solutions like Numio.
Inside Numio’s Sybil Resistance Framework
Numio employs Sybil resistance as part of its identity management system. Before we discuss how resistance is achieved, we ought to describe the system’s purpose. As part of the identity management solution, Numio gives clients the option to verify their IDs, consequently proving to 3rd parties that users are honest about their identities, and that they have not committed any form of fraud. In itself, this is a form of Sybil resistance, obtained through an AI-based identity check entailing an ID verification, a liveness detection process, and the confirmation that users have not been involved with money laundering. Thus, network-wide Sybil resistance is obtained as verified users are unable to assume different identities.
After the process is securely completed, users become Numio-verified. In doing so, a hash (also known as an attestation) containing proof of this verification is stored on an in-house server, and in the future, will be stored immutably on-chain, with no actual personal data being stored on Numio’s servers. Users can think of this ‘hash’ as a checkmark around account names, proving legitimacy. This enables users to protect their online identity, while also proving to 3rd parties that they are in fact, a real human who has gone through an ID verification system.
Numio’s identity management solution is marketed towards third parties looking to seamlessly verify customers. This creates several possibilities, including the data imports, social account connections, as well as cryptocurrency address whitelisting. The indexable hash verification data can be queried by any interested third party without necessitating yet another verification process, but also without unveiling any personal information.
Since not everyone has the benefits of identity documentation there will be tiers of trust or “reputation” that you will be able to have around your identity. The AI-based identity check is obviously the highest form of “trust”, but other options will be introduced over time which allows you to have additional levels of trust. The easiest way to think about this is an oracle, similar to Chainlink, but for identity data.
Exploring Numio’s Other Advantages
Numio represents an advanced cryptocurrency application designed to facilitate fast, cheap, and secure digital asset transfers through its Ethereum-based zkRollups layer-2 solution. With enough bandwidth to process over 2,000 transactions per second, Numio’s use cases expand far beyond the scope of retail needs, appealing to institutions as well. On top of facilitating instant and low-cost payments, Numio is also building in-app cryptocurrency trading, staking features, as well as the ability to lend & borrow.
The roadmap also includes point-of-sale (POS) payments for retail store purchases and cashback rewards. At the moment, Numio is only available on Android devices, but the iOS app is in the works and will be launched within the short term.
An Unique Market Position
Through its many features, Numio is a blockchain payments application like no other. Its Sybil resistance framework further establishes the app’s value proposition, providing an efficient means of identity management on-top of Ethereum’s network. Coupled with payment functions and its many upcoming features, Numio is a key player in the road to crypto mass adoption.