Selective Disclosure Protocols

Selective disclosure protocols allow users to reveal only specific portions of their personal or financial data to a counterparty or regulator while keeping the rest private. In a financial context, a user might prove they are over eighteen or that they possess a certain net worth without revealing their birth date or total account balance.

This is achieved through cryptographic credentials that can be partially verified. It empowers users to maintain control over their sensitive information while still meeting necessary verification standards.

This minimizes the risk of identity theft and reduces the scope of data stored by protocols. It is a critical component of user-centric digital identity in decentralized finance.