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It focuses on performing KYC such as biometric authentication without leaking private identity information. The functional encryption will be employed to guarantee that only controlled KYC and DID information is revealed to the entity users are trying to authenticate to. It will ensure user data and identity confidentiality while performing the KYC step.
A user will be able to set up a Ruby account and connects with his bank account or centralized ex- change accounts such as Binance. The relevant KYC information will be categorized and encrypted with the respective policy, such as “Vip-1 user” AND “Exchange: Binance” AND “DeFi app type: tier-1 DEX”, and uploaded to the storage layer. Only when the DeFi apps present a secret key corresponding to all these attributes will be able to decrypt more detailed user information. The Ruby API will establish an alliance between TradFi institutions and DeFi apps, and serve as an access control gateway to guarantee all the private data flow between both sides concords with the necessary regulation, etc.
Ruby Protocol’s privacy solution embodies the built-in attributes of data programmability, traceability, and verifiability, all of which will lead to greater adoption of distributed applications in auditing automation and compliance monitoring, and it will guarantee high assurance. Ruby Protocol’s solution can serve as a fundamental tool for TradFi to transit to DeFi.
People are turning everything into NFTs, be it videos, audios, JPGs, etc. It could represent your experience, your thoughts, your status, and sometimes NFT itself can be a secret key. NFT is also redefining decentralized identifiers (DID). In many cases, NFT is your identity. Therefore, access control based on NFT is a natural consequence. There are many traditional Internet companies such as Meta and Alibaba joining the race of NFT, which means the NFT-gated event could go well beyond the cryptocurrency world. There are numerous projects starting to use NFT to control the access to both online and offline events, be it online Metaverse events, hotels, bike renting, etc. There are almost infinite possibilities to combine NFT-gated access control with functional encryption. Even in the simplest form of whitelisting access control based on NFT, we could pick a power tool such as identity-based broadcast encryption (which is a special form of functional encryption) and provide an immediate solution. This is a really exciting space to watch.
There is a growing trend to issue stocks or securities on the permissionless blockchain. For instance, CM-Equity AG issued Coinbase’s stock (COIN) on the BNB smart chain recently, allowing the users to purchase tokenized versions of the stock. To ensure the regulatory compliance of security issuance, one could encrypt the access key to the said security under the predefined policy. For instance, the issued security might only be accessible to citizens of a center country. In this case, the access key should be encrypted under the allowed country so that any citizen with a key corresponding to the wrong country won’t be able to decrypt the said security. Obviously, real- world regulations will be much more complex than this, but they could all be enforced in a similar manner using functional encryption.
Ruby’s FE smart contracts are privacy-centric and underlie the relationship between asset owners and custodians. The bug-free and algorithmically correct code can ensure the ownership of any digital asset and its access control mechanisms can define who can own and transfer a specific asset in a regulatory compliant manner.