Frequent Questions

Decentralized identity verification involves securely confirming identities without storing personally identifiable information (PII) in a centralized database. Instead, data is encrypted and fragmented across distributed nodes, preventing single points of failure and significantly enhancing security. It's essential as it protects users' privacy, reduces the risk of data breaches, complies effortlessly with global regulations (GDPR, CCPA), and decreases overall operational and compliance costs.

Zyphe achieves GDPR and CCPA compliance through decentralized, region-specific storage and advanced encryption methods (AES-GCM-256). Users’ data fragments remain stored within their respective regions, meeting stringent data residency requirements. This model minimizes privacy risks and regulatory burdens, ensuring smooth, cost-effective compliance for businesses globally.
Zyphe is built on the principles of privacy by design and data minimization. By giving users more direct control over their personal data and by keeping PII secure and off of company servers, Zyphe helps companies avoid much of the compliance overhead involved in securing private data.

Zyphe substantially lowers compliance costs—up to 39%—by eliminating the need to store and secure sensitive PII internally. Its decentralized model reduces the complexity and frequency of compliance audits, minimizes necessary data backups, streamlines regulatory adherence (SOC 2, ISO 27001, PCI-DSS), and decreases cybersecurity insurance premiums due to lower data breach risks.

Yes, Zyphe is fully equipped to help crypto asset service providers (CASPs) meet the stringent KYC and AML requirements imposed by Europe's Markets in Crypto Assets (MiCA) regulations. Zyphe’s decentralized identity verification and anti-money laundering (AML) modules guarantee compliant onboarding while ensuring robust data protection.

Zyphe’s Know Your Business (KYB) solutions securely verify and authenticate business entities, identifying ultimate beneficial owners and validating the legitimacy of business partners. By leveraging decentralized verification processes, Zyphe helps companies build reliable business relationships and comply seamlessly with global regulatory standards.

Zyphe inherently incorporates privacy-by-design principles through decentralized data management, data minimization, user-controlled access, and advanced encryption. These measures ensure privacy protection is built directly into its verification processes.

Zyphe simplifies AML compliance by integrating robust automated screenings within the onboarding process, efficiently checking against global watchlists and detecting suspicious transactions. This significantly reduces manual workload, enhances accuracy, and ensures global regulatory adherence.

Companies can reliably verify the legitimacy of business entities using Zyphe’s decentralized KYB solutions. These services validate organizational authenticity, ownership structures, regulatory status, and other vital business credentials, ensuring trustworthy partnerships.

Zyphe fosters marketplace trust by securely verifying identities and protecting user data through decentralized storage. This reduces fraud, enhances data privacy, increases user confidence, and ensures a safer environment for all marketplace participants.

Zyphe ensures audit readiness by leveraging immutable logs and threshold encryption methods. Data can only be accessed with the consensus of multiple parties, providing tamper-proof records and swift responses to audit requests, ensuring compliance without compromising security.

Reusable KYC credentials provided by Zyphe allow users to undergo identity verification just once and subsequently reuse their verified credentials across multiple platforms securely. This dramatically improves user experience by reducing friction and increasing onboarding completion rates by up to 70%, benefiting both users and businesses through better customer acquisition and retention.

Zyphe safeguards PII by encrypting it into smaller shards stored across decentralized nodes worldwide. This fragmentation and encryption strategy eliminates single points of vulnerability, significantly reducing the risk of unauthorized access or data breaches, thus protecting user privacy and enhancing overall security.

Minimizing stored data significantly reduces cybersecurity risks by decreasing the amount of sensitive information susceptible to breaches. Fewer data points lower operational complexity, compliance requirements, infrastructure costs, and the overall risk profile, thereby reducing potential financial losses and reputational damage.

Know Your Partner (KYP) involves thoroughly validating the legitimacy and compliance of business partners. Zyphe’s decentralized KYB verification securely confirms partner authenticity and legitimacy, minimizing fraud risks and building stronger, reliable business relationships.lla

Yes, Zyphe drastically reduces onboarding friction through its one-click, reusable credentials, increasing onboarding completion rates significantly—up to 70%. Users find the onboarding process smoother, enhancing their overall experience and likelihood to engage.

Decentralized storage distributes encrypted identity data across multiple nodes globally, making it significantly more secure than traditional storage methods. It eliminates vulnerabilities associated with central databases (common targets for breaches), enhances data resilience, supports compliance audits, improves latency and scalability, and greatly reduces compliance-related costs.

Zyphe’s solutions can be integrated rapidly—in mere minutes—thanks to intuitive onboarding processes, pre-built industry-specific templates (crypto, fintech, marketplaces), and a user-friendly administrative interface. This is vastly quicker and simpler compared to traditional solutions that typically require weeks for initial setup.

Unlike centralized providers, Zyphe decentralizes user data, eliminating single points of vulnerability. Zyphe does not store complete datasets or maintain backdoor access, thus offering unparalleled protection against breaches compared to traditional KYC solutions. Zyphe also provides secure and trusted user profiles that can be reused to complete KYC and KYB requirements in one-click, while providing more enriched user data that allow businesses to identify trustworthy users.

Companies using Zyphe benefit from significant cost savings in infrastructure, compliance audits, cybersecurity insurance, and operational overhead. On average, companies experience approximately 39% lower overall compliance-related expenses annually.

Zyphe particularly benefits crypto, fintech, marketplaces, sharing economy services, and heavily regulated industries (such as gambling and adult services), providing secure, efficient, cost-effective compliance and data protection solutions tailored for these sectors.
In addition to these industries, Zyphe serves businesses in any industry that is required to conduct KYC or KYB processes.