Civic

Hamster Kombat

Bitcoin ETF

LayerZero

The internet is awash with deepfakes, bots and artificial intelligence pretending to be humans — and a host of different projects are racing to come up with an effective solution.
Multiple studies estimate that between 5% and 15% of accounts on X are bots, and Facebook <a data-ct-non-breakable="null" href="https://www.statista.com/statistics/1013474/facebook-fake-account-removal-quarter/" rel="null" target="null" text="null" title="null">bans</a> hundreds of millions of fake users every quarter.&nbsp;
Online games are also swamped with bots and AIs, used to “grind” through repetitive in-game tasks like mining or farming, or to fake activity for crypto games like Hamster Kombat to receive airdrops.
Sometimes, identifying bots is relatively straightforward, as they can be repetitive, behave erratically or simply make errors a human would almost certainly avoid. But as with toupees, people usually only spot the bad fakes — and the tech is improving so rapidly that it’s becoming difficult to tell what and who is real. Research by the University of Waterloo, Ontario, suggests that people aren’t particularly adept at spotting human replicants.
The March study invited 260 people to sort 20 images of people’s faces: 10 genuine and 10 AI-generated by Stable Diffusion or DALL-E. Only 61% of participants successfully <a data-ct-non-breakable="null" href="https://uwaterloo.ca/news/media/can-you-tell-ai-generated-people-real-ones" rel="null" target="null" text="null" title="null">completed</a> the task, lower than the 85% the researchers had projected.
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 <img alt="Technology, Elections, Airdrop, Features" src="https://s3.cointelegraph.com/uploads/2024-10/0192b43e-7aeb-7bb2-9a9c-e1739b106768" title="">
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 AI-generated images from the Waterloo study. Source: University of Waterloo
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There are a variety of projects attempting to solve the problem by providing proof of humanity.
Shady El Damaty, co-founder of the blockchain-based digital identity platform Holonym, explained how his firm uses a system called “human keys” to separate real people from imposters.
“At its core, human keys are private keys. But instead of being derived from randomness, they’re derived from human attributes like biometrics data [and] personal data like passwords,” he told Cointelegraph. “An example would be creating a wallet from a face scan or from a social security number.”
Another blockchain-based project called Civic has created a digital identification system using a “simple video feed” to confirm a person’s authenticity and uniqueness.
Civic vice president Titus Capilnean told Cointelegraph that document verification is another approach “that adds a lot more friction to the verification process versus a simple liveness plus uniqueness.”
Other blockchain projects are plowing the same furrow. Proof of Humanity combines social verification and video submission to create an anti-Sybil verification system, while Privy is an authentication and key management platform for securely onboarding and managing users at scale.
Then there’s Worldcoin’s iris-scanning Orbs, which uses the data to create unique identifiers to provide proof of personhood. Despite incorporating ZK-proofs and implementing various privacy-preserving policies, Worldcoin provokes a lot of concern.
<h2 id="privacy-matters-too">Privacy matters too</h2>
The big drawback to using biometrics to confirm humanity is that many privacy-conscious users are hesitant to provide their biometric data to Big Tech companies.&nbsp;
Opposition to biometrics tends to focus on several key areas, including the risk of surveillance, issues surrounding consent, and third-party data retention.
Holonym attempts to address such concerns by keeping the vast majority of data on the client’s device.
Recent: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/quantum-computing-bitcoin-encryption-keys" rel="" target="_self" text="null" title="https://cointelegraph.com/news/quantum-computing-bitcoin-encryption-keys">Quantum computer ‘threat’ to crypto is exaggerated — for now</a>
“I would say like about 80% to 90% of all data that we deal with stays on the consumer device,” Damaty said. The information Holonym does keep, such as the client’s email address, is similar to other online services and is essential for account recoverability.
“Our philosophy is that everything should be client-side first. And if it needs to leave the client’s device, there should be some form of consent […] to be able to authorize access to any sensitive information,” Damaty said.
<h2 id="the-application-of-digital-id">The application of digital ID</h2>
Back in May, LayerZero launched a massive anti-Sybil hunt to weed out all the bots attempting to game the system to dishonestly qualify for its airdrop many times over.
It successfully identified hundreds of thousands of addresses as Sybils and/or bots, and its token performance since has been significantly better than projects that handed out tokens to bot owners who then dumped them for profit.&nbsp;
<figure>
 <img alt="Technology, Elections, Airdrop, Features" src="https://s3.cointelegraph.com/uploads/2024-10/0192b441-329f-764a-a37e-7695f136fe97" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/LayerZero_Core/status/1791622471965163597" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/LayerZero_Core/status/1791622471965163597">LayerZero</a>
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At the time, Capilnean told Cointelegraph that the time-consuming Sybil hunt could have been avoided entirely by using Civic’s uniqueness test to confirm users as unique from the outset.
The applications of digital ID systems are broader still, and can be applied even to the political process. Damaty said that during Andrew Yang’s 2020 presidential campaign, anonymous DAO members wanted to donate money to him.
“But that’s illegal,” Damaty said. “You can’t fund a political campaign without verified donations from US residents. So, we stepped in and helped them out.”
The system pioneered by Holonym, dubbed Know Your Anon, allowed donors to send money to Yang’s campaign while simultaneously preserving their anonymity. Using government ID, phone number/email or social security numbers, the system first allowed users to confirm US residence and then donate with an implementation of zero-knowledge technology.
The program was implemented in coordination with Lobby3, a Web3 community designed to empower ordinary people in Washington, DC, and Vouched, a digital identity verification system.
“That’s when we realized what we’re building is really this public key infrastructure for all sorts of stuff, like voting and civic infrastructure,” Damaty said.
<h2 id="the-future">The future</h2>
The company is currently working on a project seeking to alleviate the refugee crisis in Myanmar as the Rohingya Muslim minority population is driven from their homes into neighboring Bangladesh and Thailand.
Recent:&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/556m-spot-bitcoin-etf-inflows-investors" rel="null" target="null" text="null" title="https://cointelegraph.com/news/556m-spot-bitcoin-etf-inflows-investors">$556M in spot Bitcoin ETF inflows signals major shift in investor sentiment</a>
“The idea is to build out a better proof of humanity and legal personhood system for these refugees so that they can access banking and financial infrastructure,” Damaty said.
Working with partners including the United Nations, Refunite, Exile Hub and the Refugee Fund, Damaty hopes that Holonym will use its ultra-fast personhood-proving system as the first step to creating government credentials that allow displaced people to access vital services.
While the plan is still in its infancy, it offers another tantalizing glimpse into the potential of digital ID as a bulwark against the chaos-creating elements of the 21st century.

Blockchain can help fight AI fakes in crypto airdrops and elections

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Cointelegraph

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