ZKi3s

In order to have a functioning basis on which to conduct online transactional-based relationships in a private and non-kyc manner a form of proof of reputation is required.

ZKi3s are no-KYC zero-knowledge proof Blockchain entries that represent an individuals online relationship history reputation which forms that basis on which all of Three Protocols systems function.

ZKi3s are minted by an individual without the requirement of any national identification document or biometric details. ZKi3s are then used to send ZK-Stark proofs whenever a user desires to collect a review or reputation score for any digital relationship or transaction he engages in. For example, if a user whishes to sell a service such as a website design on an online marketplace, he will attach his ZKi3 proof to the engagement, and once successfully completed the review for the engagement will be applied to his on chain ZKi3 profile.

The proof is received by the review issuing protocol (in this case the online marketplace) and the issuing protocol also receives proof from the reviewers ZKi3. This proof is not made visible to the Blockchain publicly thus there is no way to attach the transaction wallets for the engagement to the ZKi3s that participated. The issuing protocol then attaches the review string or digital message to both the buyer and sellers ZKi3.

The algorithmic formulae for ZKi3s will be made open source by Three Protocol thus allowing any digital platform to integrate ZKi3s via a permissionless process. ZKi3s then offer any user desiring to participate in a digital engagement with another user, a comprehensive span of historical feedback with higher detail than what a mere public name or KYC can offer. Nevertheless due to their anonymity they are resistant to overbearing government or corporation usage to violate individual human rights.

Platforms can choose what other review issuing platforms historical record they they would like to include in their evaluation for ZKi3 profile analysis and presentation. Furthermore, using individually generated key base eliptic curve models for the ZKi3 Blockchain entry greatly thwarts the likeliness of users selling high reputation ZKi3s as there is no way to move ownership of such. Therefore if a ZKi3 is sold, the original owner can still access it creating great risks for the buyer.

The four eCommerce technological structures

Fiat System

Security

Layer 1 Fraud protection: Governments tracing by KYC

Layer 2 Fraud protection: Banks blocking transactions

Layer 3 Fraud protection: None

Privacy

Private transactional history accessible to the government: Yes

Private transactional history accessible to public: No

Personal data accessible to the governments: Yes

Personal data accessible to banks: Yes

Efficiency

Feeless cross-border transactions: No

Instant cross border transactions: No

High speed conflict resolution: No

Crypto KYC system

Security

Layer 1 Fraud protection: Governments tracing by KYC

Layer 2 Fraud protection: None

Layer 3 Fraud protection: None

Privacy

Private transactional history accessible to the government: Yes

Private transactional history accessible to public: Yes

Personal data accessible to the governments: Yes

Personal data accessible to banks: No

Efficiency

Feeless cross-border transactions: Yes

Instant cross border transactions: Yes

High speed conflict resolution: No

Crypto non-KYC system

Security

Layer 1 Fraud protection: None

Layer 2 Fraud protection: None

Layer 3 Fraud protection: None

Privacy

Private transactional history accessible to the government: Yes

Private transactional history accessible to public: Yes

Personal data accessible to the governments: No

Personal data accessible to banks: No

Efficiency

Feeless cross-border transactions: Yes

Instant cross border transactions: Yes

High speed conflict resolution: No

Crypto ZKi3 system

Security

Layer 1 Fraud protection: ZKi3 onchain reputations

Layer 2 Fraud protection: Triproof transacting smart contracts

Layer 3 Fraud protection: DAIOs for disputes

Privacy

Private transactional history accessible to the government: No

Private transactional history accessible to public: No

Personal data accessible to the governments: No

Personal data accessible to banks: No

Effieciency

Feeless cross-border transactions: Yes

Instant cross border transactions: Yes

High speed conflict resolution: Yes

The Case for Conduct-Based KYC in eCommerce Over Biometric-Based Systems

The rapid technological advancements seen across various industries have highlighted a significant lag within the realm of eCommerce, largely due to a flawed assumption underlying its structural framework. This flaw lies in the reliance on biometric-based Know Your Customer (KYC) systems for securing online transactions and contracts.

Currently, the prevailing model in eCommerce hinges on the idea that KYC, grounded in biometric verification, ensures that in cases of fraud, the perpetrator can be traced and held accountable. This approach, however, depends heavily on the effectiveness and trustworthiness of law enforcement agencies or government bodies, both of which are experiencing historically low levels of public confidence. Moreover, the process of pursuing justice in such cases is often protracted, leading to extended delays in resolution.

In response to these shortcomings, traditional financial systems have sought to introduce a secondary layer of protection by transferring the responsibility of fraud prevention to banks and financial regulatory authorities. These institutions have implemented measures allowing them to freeze accounts and initiate chargebacks. However, trust in these entities has also eroded, due to numerous instances of financial and ethical misconduct, further undermining the efficacy of this approach.

The advent of cryptocurrency has been proposed by some as a potential alternative to traditional financial systems. While cryptocurrencies offer decentralization and reduced reliance on traditional financial institutions, they lack the necessary mechanisms for ensuring trust between transacting parties. Without a foundation for verifying trustworthiness, and with no built-in systems for refunds or chargebacks, cryptocurrency transactions are vulnerable to fraud. This vulnerability has hindered the mass adoption of cryptocurrencies in eCommerce. Additionally, cryptocurrency transactions often lack privacy, as they can be traced back to individuals by potentially untrustworthy government entities. Therefore, establishing a private and trust-based foundation is crucial for the technological evolution of eCommerce.

A shift in the basis for trust within eCommerce, from biometrics to conduct and behavior, could effectively mitigate these risks. Conduct-based KYC systems, such as those enabled by ZKi3s, paired with Decentralized Autonomous Intelligent Organizations (DAIOs) and on-chain smart contracts, offer a compelling alternative. These systems allow individuals to accrue a reputation score derived from their prior online behavior, independent of personal and private information like biometrics.

This reputational approach creates a strong disincentive for fraudulent behavior, as individuals risk losing their hard-earned reputations. Additionally, it eliminates the need for reliance on centralized authorities to make final judgments or to control individuals' finances. Instead, refunds can be processed within seconds rather than days, and the decision-making power regarding financial engagements rests with the companies and buyers themselves, rather than with banks or governments.

In conclusion, ZKi3s represent a private, instant, fraud-resistant, and more secure framework for eCommerce. By shifting the focus from biometric-based identification to reputation-based trust, eCommerce can align more closely with the technological advancements that have transformed other industries, fostering a safer and more efficient online marketplace.