On-chain KYC in the New Era: Launch of Legit ID by zCloak Network

zCloak Network
3 min readNov 9, 2023


Legit ID Landing Page

zCloak Network, a company dedicated in Real-World Identity (RWI) solutions for Web3, is proud to introduce Legit ID. This omni-chain, privacy-centered KYC service promises to reshape the identity and asset-backed protocols landscape in the digital realm.

“Balancing regulation and compliance with Web3’s inherent values of decentralization and openness is essential,” remarked Dr. Zhang, the founder of zCloak Network. “What we are doing right now is like bringing law and order to the wild west.”

Historically, crypto and Web3 enthusiasts have thrived in a space that prioritizes openness and anonymity. The rise of DeFi protocols and the tokenization of real-world assets has revolutionized the financial world. However, this new frontier has its challenges. As the digital realm grapples with global regulations and compliance, the transparency offered by blockchain and cryptography is both a blessing and a potential haven for unregulated malicious activities. Decentralization inevitably brings investor protection, privacy, jurisdiction, and transparency concerns.

Governments and regulatory bodies recognize the growing need for regulation in the Web3 ecosystem. They’re on the hunt for solutions that strike a balance between decentralization and accountability. As the focus shifts towards tokenizing real-world assets — a pivotal evolution in Web3 finance — greater attention is being given to Know-Your-Customer (KYC) and Anti-Money Laundering (AML) solutions as potential answers to these regulatory complexities.

While KYC and AML play crucial roles in verifying compliant transactional data and preventing illegal blockchain activities, traditional KYC methods have faced resistance in the Web3 and crypto sectors. This is mainly because these sectors value user autonomy and privacy.

This underscores the need for a reimagined KYC system that aligns with international regulations without compromising user privacy. Enter Legit ID by zCloak Network, culminating in the company’s extensive work in Web3’s zero-knowledge and identity domain.

“KYC once, recognize everywhere.” This slogan encapsulates Legit ID’s functionality: a single-time KYC verification stored on the user’s device, universally verifiable. Built upon zCloak’s zkID protocol — which adheres to W3C’s DID and Verifiable Credential standards — Legit ID leverages zero-knowledge proof technology with decentralized identity. This ensures a secure, privacy-focused, and versatile KYC process.

Legit ID’s Standout Features Include:

  • Omni-chain Availability: With KYC data stored off-chain using the DID and VC protocol, users can make them available to smart contracts across multiple blockchains such as Ethereum, Solana, Sui, and any Layer-2/3 network without any bridging fees required by conventional cross-chain protocols.
  • Real-time AML Updates: Compliance check is not a one-time thing but an ongoing process. Legit ID’s dynamic AML/CTF alerts offer real-time updates, ensuring any illegal activities are immediately alerted. This safeguards businesses, investors, and users against potentially insecure addresses.
  • Fine-tuned identity info: the information provided to 3rd party smart contract can be as simple as a pass/fail status of a KYC check, an AML risk score, or as complex as a zk-based proof exposing more details about the user. The level of detail and the verification criteria can be fine-tuned per the need of each verifier.
  • Ease of integration and Cost Efficiency: user KYC status and AML information are accessible at the protocol level. 3rd party projects only need to make a minor change to their smart contract to enable the examination of user identity info. Legit ID provides businesses a cost-effective solution for accessing verified identities, facilitating compliance without excessive resource allocation.

Products like Legit ID herald a future where regulated on-chain activities don’t necessitate compromising privacy or data ownership. This innovation is poised to benefit sectors like cross-border payments, e-commerce, inclusive finance, and asset tokenization. As Web3 integrates more with everyday life, the goal remains to simplify intricate processes, particularly for MSMEs and ordinary users.

Finally, if you want to learn more about zCloak and Legit ID, please visit the website!



zCloak Network

zCloak Network is a Real-World Identity (RWI) infrastructure for Web3. Website: zcloak.network; Product: zkid.app