UN Embraces Blockchain: Utilizing ZK-Proofs and Decentralized IDs for Refugee Safety – IOTA Offers the Same Tech But Better

• The UNHCR is actively exploring decentralized identity solutions, particularly zero-knowledge proofs (ZK-proofs), to ensure the safety of refugees crossing borders.
• The agency acknowledges the potential of blockchain technology and has already initiated a pilot project using USD Coin (USDC) stablecoin for swift financial assistance to Ukrainian refugees.

The treasurer of a United Nations agency recently noted that ensuring the safety of refugees crossing borders is increasingly dependent on decentralized identity solutions utilizing zero-knowledge proofs (ZK-proofs).

The United Nations High Commissioner for Refugees (UNHCR) is actively working on establishing an identity infrastructure to facilitate swift migration for refugees while ensuring the verification and preservation of their identities, states Carmen Hett, treasurer of the Division of Financial and Administrative Management for UNHCR.

This initiative addresses the common challenge faced by refugees in proving their identity when their government often holds the key to verification. During a panel discussion last week, Hett said:

“Imagine yourself as a refugee going across borders; not all the laws in every country are the same, so the key is [to have]a system that can ensure the trust that we can guarantee as UNHCR to make sure identity is actually secure and safe for the people at risk”.

Stressing the Implementation of ZK-Proof Solutions

Carmen Hett further highlights the critical role of zero-knowledge proofs (ZK-proofs) in securing the safety of refugees during border crossings. Implementing ZK-proofs in the refugee context addresses identity protection, data security, and trust-building in a borderless manner.

The absence of identity proof for refugees may result in restrictions on accessing essential services like bank accounts and employment opportunities in the host country. ZK-proofs, a cryptographic protocol, offer a potential solution by allowing identity verification without revealing the actual contents of the statement, ensuring privacy. However, Hett emphasizes the need for increased regulatory efforts to facilitate broader adoption of such technologies.

The United Nations High Commissioner for Refugees (UNHCR), tasked with aiding refugees and displaced populations, has embraced blockchain technology for efficient aid delivery. The agency initiated a pilot project in December 2022, leveraging the USD Coin (USDC) stablecoin to provide swift and accessible financial assistance to Ukrainian refugees affected by the Ukraine-Russia war.

Carmen Hett commended the blockchain’s role in ensuring speedy, accurate, and transparent fund transfers worldwide, allowing aid to reach recipients within minutes. Additionally, the UNHCR focuses on enhancing the financial and digital literacy of displaced refugees, preparing them for cross-border financial management and storage.

Decentralized ID Solutions

Several players in the blockchain industry have been working to bring decentralized ID solutions to the market.

The IOTA ecosystem has introduced the Stardust upgrade, featuring Identity 1.0. This upgrade marks a significant leap forward in digital identity ownership and control, prioritizing privacy and transforming the processes of generating, updating, and resolving conflicts in Decentralized Identifiers (DIDs).

Thoroughly tested on the Shimmer staging ground, Identity 1.0 empowers users with complete ownership and control over their digital identities, prioritizing user privacy. The upgrade brings about a paradigm shift in the management of DIDs, incorporating Alias Outputs capable of seamless interaction with other Layer 1 networks that host both fungible and non-fungible tokens (NFTs).