EtherIdentity Whitepaper

Overview

EtherIdentity is a decentralized, privacy-preserving KYC (Know Your Customer) verification system built on the Ethereum blockchain. It combines cryptographic techniques, NFT metadata, and AI-powered verification to allow users to create a secure digital identity that can be used across multiple platforms—especially centralized and decentralized exchanges—without ever sharing sensitive personal data.

Vision & Mission

Our mission is to give users control over their identity while enabling compliance with regulatory standards. EtherIdentity protects user data by:

• Encrypting sensitive information with the user’s private key.

• Storing only the cryptographic hash (kycHash) on-chain via NFT.

• Ensuring bourses and other services can verify identity without seeing the actual user data.

Key Features

1. Private Key & Encrypted Identity JSON

Each user creates a new identity via the EtherIdentity app, which generates a unique private key. This key is used to encrypt a JSON file containing:

• Name, Surname, National ID, Address

• Email, Phone number

• Photos: front/back of ID, selfie with ID

• Liveness check score

This JSON is encrypted locally using AES (CBC + PKCS7), and only the encrypted version remains on the user's device.

2. AI Verification Layer

Before finalizing the KYC process, the app uses AI (simulated in MVP) to:

• Verify document authenticity

• Perform liveness detection

• Validate input data accuracy

Once passed, a canonical version of the decrypted JSON is hashed (SHA-256), then combined with the private key and re-hashed to produce the final kycHash.

3. NFT Minting

The app submits the following to EtherIdentity’s backend:

• kycHash

• privateKey

The backend stores this data securely and mints an NFT (on testnet for MVP), writing to its metadata:

• kycHash

• Verification confidence (e.g., 96%)

• Timestamp

The encrypted JSON is never uploaded, ensuring full user-side data control.

4. Secure Re-Entry with PIN or Biometrics

After registering, users can access their identity using:

• A PIN they set during setup

• Optional biometric authentication

Their encrypted JSON and private key are locally stored via shared_preferences.

5. Identity Import & Recovery

Users can re-import their identity using:

• Encrypted JSON file

• Their 64-char private key

The app decrypts and re-verifies the kycHash. If it matches the NFT metadata and the server record, access is granted.

6. Exchange Integration (CEX/DEX Usage)

When a user wants to KYC for an exchange:

• They share the encrypted JSON file + kycHash

• The exchange then:

  • Trusts the on-chain NFT metadata if the hash matches

  • Stores the encrypted JSON for compliance

  • Cannot view personal data unless they obtain the private key from EtherIdentity

7. Legal Access Protocol

If legally compelled:

• The exchange requests the private key from EtherIdentity

• EtherIdentity verifies court documentation

• If legitimate, the private key is released

• Only then can the JSON be decrypted and the identity revealed

Security Principles

• AES-256 encryption with unique IVs per user

• Hashing with SHA-256 for consistency

• No sensitive data leaves the device

• NFT metadata contains only non-reversible hash

Tech Stack

• Flutter (UI)

• Dart (Client logic)

• AES Encryption via encrypt

• File selection with file_picker

• IPFS or testnet NFT minting (via backend)

• SharedPreferences (storage)