Risks of Digital Identity Despite ZK-Wrapping, Says Ethereum Co-Founder

According to PANews, Ethereum co-founder Vitalik Buterin has raised concerns about the risks associated with digital identity, even when wrapped in zero-knowledge (ZK) proofs. In his article, Buterin acknowledges that ZK-wrapping addresses many significant issues but highlights that risks remain, particularly those unrelated to biometrics. Most of these risks, such as privacy breaches, susceptibility to coercion, and errors, stem from attempts to maintain the 'one person, one identity' principle. Buterin contrasts this with the use of 'proof of wealth' as an anti-sybil attack measure, which he argues is insufficient for many use cases. He suggests that an ideal theoretical solution lies between these two extremes. However, achieving this balance in practice is challenging. Instead, Buterin advocates for a 'plural identity' approach as the best practical solution. This approach can be explicit, such as those based on social graphs, or implicit, involving various types of zero-knowledge proofs, none of which can dominate the market entirely.