Gatenox launches decentralized identity wallet built on Aleph Zero platform
The wallet offers seamless, near-zero cost and one-time Know-Your-Customer (KYC), Anti-Money Laundering (AML), and Customer Due Diligence (CDD) compliance for individual use and integration by exchanges, applications, Web 3.0 services, as well as fintech and banks.
The Gatenox wallet leverages Liminal — Aleph Zero’s plug-and-play privacy protocol — to allow users to prove their data is valid without revealing personally-identifying information. Thanks to Liminal, the data remains user-owned, allowing them to choose if, how, and when to share their data directly — eliminating the need for intermediaries. This degree of control over personal data also opens up the possibility of profiting from data sharing, but with control remaining in the hands of the user.
Liminal’s security measures are underpinned by a unique combination of “zero-knowledge” proofs (ZK-SNARKs) and Secure Multiparty Computation (sMPC). In combination, these data protection tools work to cancel out the other’s pitfalls. ZK-SNARKs allow for basic transfers but do not allow multi-user interactions, whereas sMPC can be prohibitively slow on its own. Coupled together, they create the basis for Liminal— a fast, secure, and highly private framework from which to stage web 3.0 and metaverse-centric projects.
The metaverse, in particular, poses significant identity verification and compliance challenges. Fraud, identity theft, and money laundering will all continue to exist — and likely become exacerbated — within the metaverse. Moreover, users will still need to prove IDs behind their avatars to buy, sell, and otherwise participate within this emerging digital economy.
The issue remains that current Web2 security standards are not up to the task of tackling these problems. Web 3.0 decentralized networks, however, provide a more secure basis for identity verification based on Decentralized Identifiers (DIDs) — a new type of identifier that enables verifiable, decentralized digital identity for any subject or entity determined by the controller of the DID. Additionally, building-in KYC/AML as standard provides a seamless way for users and businesses to comply while maintaining control and ownership of their data.
Pawel Kuskowski, founder and CEO of Gatenox, said: “Current KYC and AML processes are costly and ineffective. With Gatenox, customers onboard once and use their data on multiple occasions — ultimately lowering costs to almost zero per user. While the cost argument is a significant selling point, the Gatenox team focuses just as strongly on conversion and data ownership. Users who do decide to share their data with a third party through Gatenox will be able to profit from this activity.”
Kuskowski is a founder and former CEO of Coinfirm — a leading SaaS AML, blockchain, and crypto analytics business — a former Global Head of AML for Royal Bank of Scotland, and senior compliance and AML experience at UBS and AIG. His business partner is Wojciech, formerly Honeywell’s Systems Engineer and Vice President of Pioneer Investments.
The development comes amid an expected influx of next-wave investment in crypto and metaverse projects from significant players with some $100 trillion reportedly waiting on the sidelines.
Antoni Zolciak, co-founder of Aleph Zero, said: “While Gatenox is still in very early stages, we’re convinced that Pawel’s and Wojciech’s track records will bring the concept to full-blown fruition. Having worked with a plethora of customer-friendly products, their team will be able to streamline the KYC and AML processes for both sides of the aisle. Gatenox founders share over 20 years of combined experience in mobile technology, financial sector, security, and KYC/AML—including crypto compliance. The team is also actively engaged with the latest global regulatory developments.”