SSI - Galactic-Code-Developers/NovaNet GitHub Wiki

Self-Sovereign Identity (SSI) & KYC NFTs

Introduction

Self-Sovereign Identity (SSI) is a decentralized digital identity model that allows users to control their personal data without relying on centralized authorities.
NovaNet integrates SSI and KYC NFTs (Know Your Customer Non-Fungible Tokens) to provide:

  • User-controlled digital identity without third-party intermediaries
  • Tamper-proof, on-chain identity verification using KYC NFTs
  • Privacy-preserving authentication via Zero-Knowledge Proofs (ZKPs)
  • Cross-chain compatibility for seamless identity verification

Unlike traditional identity verification methods, KYC NFTs tokenize identity credentials on the blockchain, ensuring security, compliance, and user control over personal data.

1. How SSI & KYC NFTs Work

Step 1: Identity Registration & Verification

Users register their identity through a decentralized identity issuer (e.g., financial institutions, government agencies, or enterprises).

  1. User submits identity documents for verification (passport, driver’s license, etc.).
  2. A verified decentralized identity (DID) is created using a cryptographic key-pair.
  3. KYC NFT is minted and assigned to the user’s wallet, representing identity verification.

Mathematical Model for Decentralized Identity Hashing:

$$ID_{hash} = H_q (ID_{document}, K_{priv})$$

Where:

  • $$ID_{hash}$$ is the quantum-secured identity hash
  • $$ID_{document}$$ represents the user’s original identity document
  • $$K_{priv}$$ is the private cryptographic key of the user
  • $$H_q$$ is a Quantum Hash Function ensuring tamper-proof security
  • No central database storing personal identity data
  • User retains full control over their identity verification

Step 2: KYC NFT Minting & Storage

Once verified, the user’s identity credentials are tokenized into a KYC NFT and stored on NovaNet’s blockchain.

  • The KYC NFT contains encrypted identity metadata.
  • It is soulbound, meaning it cannot be transferred to another user.
  • Only the user and authorized entities can validate the KYC NFT.

Mathematical Model for KYC NFT Verification:

$$KYC_{NFT} = Sign_{issuer} (ID_{hash}, K_{pub})$$

Where:

  • $$KYC_{NFT}$$ is the unique, verifiable tokenized identity credential
  • $$Sign_{issuer}$$ is the digital signature of the issuing authority
  • $$K_{pub}$$ is the public cryptographic key of the user
  • Prevents identity fraud and duplicate identity claims
  • No need to repeatedly verify identity across multiple platforms

Step 3: Privacy-Preserving Authentication with Zero-Knowledge Proofs (ZKPs)

Through quantum zero-knowledge proofs (Q-ZKPs), users can prove their identity without revealing sensitive data.

Instead of exposing personal details, a ZKP challenge-response model verifies the user’s KYC NFT authenticity.

Mathematical Model for Q-ZKP-Based Authentication:

$$P_{QZK} = H_q (KYC_{NFT}, R_{challenge})$$

Where:

  • $$P_{QZK}$$ is the Quantum-Secured Zero-Knowledge Proof
  • $$KYC_{NFT}$$ is the user’s identity credential
  • $$R_{challenge}$$ is the random challenge issued by the verifier
  • Ensures user identity is verified without disclosing personal information
  • Eliminates the risk of identity theft and data breaches

2. Key Features of SSI & KYC NFTs

Feature Traditional Identity Systems Self-Sovereign Identity (SSI) & KYC NFTs
Control Over Identity Centralized (Government/Enterprise) User-Owned Identity (SSI Model)
Data Privacy Personal Data Stored on Servers No Third-Party Data Storage
Security Vulnerable to Data Breaches Quantum-Secured Identity Hashing
Verification Requires Multiple KYC Submissions Single KYC NFT for Universal Use
Compliance Manual & Time-Consuming Automated & Blockchain-Based
  • SSI & KYC NFTs empower users with full control over their identity

3. Security & Compliance Benefits

🔹 Fraud-Proof Identity Verification

  • Each KYC NFT is cryptographically unique and tamper-proof
  • Impossible to create duplicate or forged identities

🔹 Quantum-Resistant Security

  • All identity hashes are secured with Post-Quantum Cryptography (PQC)
  • Prevents brute-force decryption attacks from quantum computers

🔹 GDPR & Regulatory Compliance

  • Users can selectively disclose identity attributes
  • KYC NFTs ensure compliance with Anti-Money Laundering (AML) and GDPR laws

4. Implementation in NovaNet

NovaNet’s SSI & KYC NFT model is integrated into:

🔹 Layer-1: NovaChain (Quantum-Secured DPoS Blockchain Core)
🔹 Layer-2: NovaZK (Quantum-Assisted ZK-Rollups for Privacy-Preserving KYC Verification)
🔹 Decentralized Identity Providers (DIDs) & Verifiable Credentials

  • Fully decentralized identity framework for individuals and enterprises

5. Conclusion: Why SSI & KYC NFTs Are the Future of Digital Identity

🚀 NovaNet’s SSI & KYC NFTs revolutionize identity management by:

  • Giving users full control over their digital identity
  • Eliminating third-party data storage risks
  • Providing a fraud-proof, cryptographically secured identity system
  • Ensuring privacy with Zero-Knowledge Proofs (ZKPs)

🌍 SSI & KYC NFTs set the standard for privacy-preserving identity solutions!

6. Related Links

🔗 NovaNet Whitepaper
🔗 Quantum-Assisted ZK-Proofs (Q-ZKPs)
🔗 Quantum Delegated Proof-of-Stake (Q-DPoS)
🔗 Quantum Entangled Ledger (QEL)

7. How to Contribute

NovaNet’s SSI & KYC NFT framework is open-source, and we welcome contributions! You can help by:
✔ Forking the repository and submitting pull requests.
✔ Improving documentation and updating decentralized identity models.
✔ Providing research on privacy-preserving identity verification.

🚀 Start contributing: GitHub Repository

📢 Join the NovaNet Community!
💬 Discord: Join Discussion
📢 Twitter: @NovaNet_Official
👨‍💻 Telegram: Community Chat

🌍 SSI & KYC NFTs are revolutionizing decentralized identity!