RaonSecure proposed that blockchain-based zero-knowledge proof is essential as a technology for personal information protection in blockchain-based financial transaction environments such as central bank digital currency (CBDC).
Kim Tae-jin, Executive Director and Chief Technology Officer (CTO) of RaonSecure, an IT security and authentication platform company led by CEO Lee Soon-hyung and Lee Jeong-ah, attended the ‘2024 2nd Personal Information Technology Forum Seminar’ held on the 24th under the theme ‘Utilization Direction of Enhanced Personal Information Protection Technology Related to CBDC’ and expressed his views on the importance of zero-knowledge proof technology. As the Bank of Korea, commercial banks, and internet banks plan to conduct CBDC usability tests targeting December, the importance of related security technologies is emerging.
At the seminar, Executive Director Kim Tae-jin participated in a panel discussion and provided insights on application cases and future research directions of zero-knowledge proof technology. He emphasized that when conducting financial transactions using blockchain such as CBDC, personal information such as transaction details can be exposed, so researching and applying personal information protection measures using zero-knowledge proof technology is an indispensable element.
Zero-knowledge proof is a cryptographic method that proves the possession of necessary information for a transaction without revealing the data held by the transactor, solving personal information protection issues. For example, a mobile ID implemented based on RaonSecure’s blockchain digital ID platform can verify age for alcohol purchases without disclosing personal information through zero-knowledge proof technology.
Zero-knowledge proof technology is one of the core technologies that make up blockchain along with the ‘consensus algorithm.’ Executive Director Kim Tae-jin explained that zero-knowledge proof is particularly suitable as an encryption technology for personal information protection in financial transactions such as CBDC.
Kim Tae-jin stated, “In financial transactions like CBDC, it is necessary to enable fast transaction processing and guarantee transparency on the blockchain while protecting personal information. Therefore, the development of zero-knowledge proof technology optimized for fast transaction processing along with protection of sender and receiver information and transaction amounts on the blockchain is required.”
He added, “It is still early for zero-knowledge proof to be perfectly applied, and continuous research is needed. Monitoring measures for anti-money laundering regulation compliance when using zero-knowledge proof technology in transactions should also be studied.”
Meanwhile, the ‘2024 2nd Personal Information Technology Forum Seminar’ was hosted by the Personal Information Protection Commission, the Bank of Korea, and the Personal Information Technology Forum, and organized by the Korea Internet & Security Agency (KISA) and the Korea IT Service Industry Association (ITSA), held at the Bank of Korea headquarters. Experts discussed considerations for personal information protection related to CBDC, utilization of related technologies, and policy directions during the seminar.
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