Zero-Knowledge Identity Authentication for Private Data Monetization

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Solution Overview

Problem

Existing data brokerage systems fail to protect user privacy and security, leading to identity theft and fraud, while users do not benefit from the monetization of their data.

Innovation Solution

A decentralized network using blockchain technology for peer-to-peer data exchange, enabling secure multiparty computation (SMC) to authenticate user identities and facilitate data transactions without third-party involvement, ensuring privacy and transparency.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If centralized databases are used to store user data, then data can be easily accessed and managed, but user security and privacy are compromised leading to identity theft and fraud

Engineering Contradiction:
Improvedata accessVSAvoiduser security
Core Design Contradiction:
Ease of operationVSReliability

Solution Approach 1:

The patent segments user data into multiple components: personally identifiable information (PII) is separated from personal data, and further segmented into committed values and openings. This segmentation allows different parts of data to be stored and processed separately, with PII kept secure while personal data can be shared for monetization, resolving the contradiction between easy access and security.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent introduces a blockchain-based intermediary system that acts as a trusted mediator between data subjects and data users. The blockchain stores verified commitments and openings without exposing raw PII, enabling secure data exchange while maintaining user security. This intermediary resolves the contradiction by providing a mechanism for easy data access that inherently protects user security through cryptographic verification.

Inventive Principle:
Principle #24Intermediary (Mediator)

2Productivity

If user data is monetized through data brokers, then organizations can access valuable information, but users do not benefit from the profits and suffer from security breaches

Engineering Contradiction:
Improvedata monetizationVSAvoiduser benefit security
Core Design Contradiction:
ProductivityVSReliability

Solution Approach 1:

The patent enables data subjects to self-manage their data monetization through the blockchain system. Users can commit to data sharing parameters, verify openings against their commitments, and control who accesses their data. This self-service mechanism allows users to directly benefit from data monetization while maintaining security control, eliminating the need for third-party data brokers and ensuring users receive the benefits of their data value.

Inventive Principle:
Principle #25Self-service

3Reliability

If traditional authentication systems are used, then user identity can be verified, but privacy is compromised and third-party involvement increases system complexity

Engineering Contradiction:
Improveidentity verificationVSAvoidsystem complexity
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The patent extracts the essential verification elements from traditional authentication systems. Instead of relying on centralized authentication servers and third-party involvement, the system extracts the core identity verification function into a self-contained blockchain mechanism where users verify their own commitments against stored openings. This extraction reduces system complexity by eliminating third-party authentication services while maintaining reliable identity verification through cryptographic proofs.

Inventive Principle:
Principle #2Taking out (Extraction)

4Productivity

If centralized data storage is used, then data exchange is efficient, but asymmetric information issues arise and fraud increases

Engineering Contradiction:
Improvedata exchange efficiencyVSAvoiddata trustworthiness
Core Design Contradiction:
ProductivityVSReliability

Solution Approach 1:

The patent implements preliminary action by requiring data subjects to pre-commit to data sharing parameters and store their commitments on the blockchain before any data exchange occurs. This preliminary commitment creates a verifiable record of what data will be shared and under what conditions, allowing efficient data exchange while preventing fraud. The pre-established commitments eliminate asymmetric information issues because all parties can verify the terms before exchange, maintaining both efficiency and trustworthiness.

Inventive Principle:
Principle #10Preliminary action

Data Source

PatentUS12556394B2System and method for authenticating user identity
Publication Date: 2026.02.17 INSIGHTS NETWORK
  • US12556394B2 patent drawing
  • US12556394B2 patent drawing
  • US12556394B2 patent drawing

AI summary

Methods and systems for authenticating profile data is described. The method includes obtaining information associated with a commitment (i) generated based on an attribute of a user and (ii) verified via a verification system implementing a zero-knowledge (ZK) proof. The method also includes authenticating an identity of the user, and signing, based on the authentication of the identity of the user, a transaction on a blockchain.