We recently caught up with Terence Kwok, CEO and Founder of Humanity Protocol.
Terence Kwok spearheads Humanity Protocol, an organization dedicated to amplifying human potential amidst the transformative impact of artificial intelligence.
He is a technology entrepreneur from Hong Kong and the CEO and founder of one of Asia’s first unicorns. Kwok’s journey has been marked by strategic partnerships with a broad spectrum of global investors and partners, setting disruptive new industry standards.
With expertise in blockchain, Web3, and technology integration, Kwok’s mission goes beyond technological advancement. He aims to use technology to bring people together, ensuring its benefits are widely accessible and impactful.
His contributions are considered to be innovative and said to be pivotal in shaping the future of disruptive technologies. Recognized for his insightful vision, Kwok advocates for change that challenges conventions.
Kwok’s entrepreneurial drive was nurtured at the University of Chicago, laying the foundation for his future endeavors. His journey from academia to the forefront of tech entrepreneurship highlights his role in pushing the boundaries of technology.
Our conversation with Kwok is shared below.
Crowdfund Insider: What fundamental problems in digital identity does Humanity Protocol aim to address with blockchain technology?
Terence Kwok: There are a few issues that Humanity Protocol addresses — Traditional identity systems rely on centralized authorities, making them vulnerable to breaches and manipulation. This centralized approach can lead to trust issues and limit user control over personal data. Humanity Protocol addresses this by using blockchain’s distributed and immutable nature, creating a secure, transparent system where identity verification is trustless and users maintain greater control and privacy through zero-knowledge proofs.
Privacy and data ownership are major concerns in existing digital identity frameworks. Users often have limited control over how their data is used or shared, leading to privacy risks. Humanity Protocol empowers individuals with self-sovereign identities, enabling them to own and manage their data. Users can decide what information to share and with whom, ensuring enhanced privacy and protection against unauthorized data use.
Humanity Protocol also tackles the bot problem. We see a growing number of incidents where bots are used to shape public discourse online, or in the case of DeFi, collect large amounts of airdrops, barring real humans from having authentic experiences online.
Humanity Protocol mitigates this by proving that accounts belong to real, verified humans — and this can be done without revealing sensitive personal details.
Why are zero-knowledge proofs significant for privacy in digital transactions, and how are they implemented?
Zero-knowledge proofs (ZKP) enable one party to prove to another that a statement is true without revealing any additional information — and in the era of centralized data storage, this should be the gold standard that organizations that hold massive amounts of personal data should strive for. ZKP ensures that individuals can verify their identity or certain attributes without exposing sensitive personal data to any third party. This is especially important in maintaining privacy and security in digital identity systems, where disclosing too much information can lead to vulnerabilities such as identity theft or unauthorized access, which are increasingly common and can be incredibly stressful to deal with.
In fact, The FTC has received a total of 5.7 million fraud and identity theft reports so far this year, with 1.4 million of those being identity theft cases.
Within Humanity Protocol, ZKPs are implemented to allow users to prove aspects of their identity or complete transactions without sharing underlying data. For example, a user could prove they are of legal age to access a service without revealing their exact birthdate.
The ZKP process ensures that only the necessary proof is shared, and nothing else about the user’s identity is exposed. This is made possible by the protocol’s integration of advanced cryptographic techniques, which maintain the balance between verification and privacy.
Crowdfund Insider: Could you describe a real-world scenario where your technology has been/can be applied in the fintech industry?
Terence Kwok: One of the biggest attack vectors in the FinTech space is digital banking. As banks increasingly adopt digital platforms, they face rising challenges in securing customer transactions and identities. Humanity Protocol can enhance security by enabling banks to verify customer identities without exposing sensitive information.
For instance, during a transaction, our solution allows a bank to confirm a user’s identity or credentials without accessing or storing personal data, thus reducing the risk of data breaches and identity theft.
Another method fraudsters are using now involves social engineering ploys to trick users into sending them funds, which Humanity Protocol can nip in the bud by allowing users to verify that they are speaking to the right people. This approach not only strengthens security but also builds customer trust by ensuring privacy.
Crowdfund Insider: What are the biggest misconceptions about decentralized identity solutions that you encounter?
Terence Kwok: A common misconception about decentralized identity solutions is that they are overly complex and difficult for everyday users to adopt. While the underlying technology is advanced, these solutions can be designed with user-friendly interfaces, making them accessible and easy to use, much like regular Web2 identity systems but with enhanced security and privacy.
Another misconception is that decentralized systems are less secure due to the absence of a central authority. In reality, decentralized identity solutions often offer superior security by eliminating single points of failure and using advanced cryptographic techniques, ensuring that user data remains protected and that identities can be verified without compromising sensitive information.
Crowdfund Insider: What impact do you foresee blockchain technology having on enterprise security measures in the next few years?
Terence Kwok: Blockchain technology is poised to significantly enhance enterprise security measures in the coming years. One major impact will be the reduction of fraud and unauthorized access through the use of decentralized and immutable ledgers. By ensuring that all transactions and data exchanges are recorded transparently and securely, blockchain can prevent tampering and provide a clear audit trail, making it much harder for malicious actors to alter or forge information.
Blockchain’s ability to enable decentralized identity management will further strengthen enterprise security. Organizations can reduce the risk of data breaches and identity theft using these tools.
This approach not only enhances privacy but also streamlines access control, ensuring that only authorized individuals can access sensitive information. As more enterprises adopt blockchain, it will likely become a cornerstone of robust security architectures, protecting against emerging cyber threats and fostering greater trust in digital interactions.
Crowdfund Insider: For businesses looking into blockchain solutions for security, what should be their first consideration to ensure alignment with their existing systems?
Terence Kwok: While integration with an organization’s current systems is crucial, it’s equally important to weigh the benefits of blockchain against the potential costs of inaction. Failing to adopt advanced security measures could leave businesses vulnerable to data breaches, fraud, and cyber threats, which can be far more costly in the long run. Businesses should evaluate how these tools can not only enhance security but also protect their assets and reputation in the long run.
Crowdfund Insider: What steps should organizations take to start incorporating decentralized identity solutions effectively?
Terence Kwok: Organizations should start by assessing their needs and goals. This involves evaluating current security, privacy, and user management challenges to determine how decentralized identity can address these issues. Identifying the specific areas where decentralized identity can enhance the organization’s operations will be the first step in making a strategic decision about adoption.
This will also help them make a decision by assessing various options and the costs associated with each — both the real cost and the cost of inaction.
Organizations should then initiate a pilot program to test the solution in a controlled setting. This approach allows for identifying potential issues and gathering feedback before a full-scale rollout. It’s also important to educate and train stakeholders, including employees and users, on how the new system works and its benefits.
Monitoring and adaptation of the system will help maintain its effectiveness and ensure it continues to meet organizational needs, even when these change.
