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decentralized-identity-did-and-reputation
Blog

Why Interoperable DIDs Require a Universal ZK Proof Standard

The promise of portable, self-sovereign identity is being broken at the cryptographic layer. Without a universal ZK proof standard like BBS+, DIDs will remain siloed and useless. This is the technical bottleneck no one is talking about.

introduction
THE FRAGMENTATION PROBLEM

Introduction

Decentralized identity is failing to scale because every chain and protocol reinvents its own proof system.

Interoperable DIDs require a universal ZK proof standard. Without it, a credential issued on Ethereum is a siloed data artifact, unusable on Solana or Arbitrum without costly and trust-laden bridging.

Current standards like W3C Verifiable Credentials are insufficient. They define data formats but ignore the execution layer, creating a verifier's dilemma where each chain must run custom, expensive verification logic.

The solution is a canonical proof format, akin to how JPEG standardized images. A DID's proof must be verifiable by any VM, from the EVM to SVM, without custom adapters. This is the ZK interoperability layer missing from today's stack.

Evidence: Projects like Polygon ID and Sismo use circuit-specific proofs, forcing verifiers like Worldcoin or Aave to deploy unique verifiers per chain, a scaling bottleneck that fragments user identity.

deep-dive
THE VERIFICATION BARRIER

The Circuit Incompatibility Problem

Decentralized identity systems cannot interoperate because their underlying zero-knowledge proof circuits are mutually unintelligible.

Proofs are not portable. A ZK-SNARK proof generated by a Circom circuit on Ethereum is a cryptographic black box to a Halo2 circuit on Polygon. Each proof system uses distinct trusted setups, elliptic curves, and verification keys.

Verification is the bottleneck. A chain like Starknet cannot natively verify a proof from zkSync Era without a custom, expensive verifier smart contract. This creates a fragmented identity landscape where credentials are siloed by their proving stack.

The interoperability tax is real. Projects like Polygon ID and Worldcoin build walled gardens. Bridging a credential requires re-proving off-chain or trusting a relayer, which defeats the purpose of self-sovereign identity.

Evidence: The EIP-7212 standard for secp256r1 verification passed because it defined a single, shared precompile. A universal ZK proof standard is the equivalent precompile for identity, eliminating custom verifier deployment for every new credential type.

THE STANDARDIZATION IMPERATIVE

Proof System Fragmentation: A Protocol Snapshot

A comparison of dominant ZK proof systems, highlighting fragmentation that impedes DID portability and verifiable credential composability.

Core Feature / Metriczk-SNARKs (Groth16, Plonk)zk-STARKsRISC Zero (zkVM)Halo2 (Plonkish)

Trusted Setup Required

Proof Size (bytes)

< 1 KB

45-200 KB

~150 KB

~2 KB

Verification Time (ms)

< 10 ms

10-100 ms

50-200 ms

< 20 ms

Quantum Resistance

Native Recursion Support

Primary Ecosystem

Zcash, Mina, Aztec

StarkWare, Polygon Miden

General-purpose zkVM

Scroll, Taiko, zkEVM L2s

Key DID Use Case

Selective credential disclosure

High-volume attestation proofs

Portable reputation proofs

Cross-chain identity state proofs

thesis-statement
THE STANDARD

BBS+ Signatures: The Only Viable Path Forward

Interoperable decentralized identity requires a universal, zero-knowledge proof standard, and BBS+ is the only signature scheme that delivers the necessary properties.

Universal proof portability is the core requirement. A DID credential issued on Ethereum must be verifiable on Solana or Polygon without revealing its contents. BBS+ signatures enable a single, compact proof to be generated from any credential, making it the ZK-native credential format for cross-chain identity.

BBS+ outperforms alternatives like CL signatures or SNARKs on a single signature. Unlike CL, BBS+ supports multi-message selective disclosure, letting users prove specific claims (e.g., age > 21) without a trusted setup. Compared to generic SNARKs, BBS+ proofs are orders of magnitude cheaper to verify on-chain.

The W3C Verifiable Credentials standard and projects like Microsoft's Entra Verified ID and the Cheqd network are adopting BBS+. This institutional momentum creates a network effect for interoperability, preventing a fragmented landscape of incompatible DID proof systems.

Without BBS+, interoperability fails. Competing schemes create walled gardens. A user's Polygon-based employment credential becomes useless on Avalanche. BBS+ is the cryptographic primitive that enables the portable, private digital identity layer web3 needs.

counter-argument
THE INNOVATION TRAP

Counter-Argument: Aren't Standards Stifling?

A universal ZK proof standard accelerates, not hinders, innovation by eliminating redundant infrastructure work.

Standards create composability, not constraints. A universal ZK proof standard like zk-SNARKs or zk-STARKs provides a common language for verifiable computation. This allows DID systems like Polygon ID or Veramo to focus on application logic, not proof-system plumbing, enabling seamless interoperability across chains from Ethereum to Solana.

Fragmentation is the real innovation killer. Without a standard, every new DID project must build its own proving stack and verification contracts. This wastes engineering resources on recreating the wheel, mirroring the pre-ERC-20 token chaos that stifled DeFi's early growth.

Evidence: The Ethereum Rollup-centric scaling roadmap mandates a standard data availability layer. This constraint didn't stifle innovation; it birthed diverse execution environments like Arbitrum, Optimism, and zkSync that compete on performance, not base-layer compatibility.

risk-analysis
THE FRAGMENTATION TRAP

What Happens If We Fail?

Without a universal ZK proof standard, decentralized identity becomes a walled garden of incompatible systems, undermining its core value proposition.

01

The Balkanization of Identity

Every major chain or protocol (e.g., Ethereum, Solana, Starknet) develops its own DID proof scheme. Users face fragmented identity silos, requiring separate credentials for each ecosystem. This kills network effects and recreates the Web2 login hell we aimed to escape.

  • Result: Zero composability across DeFi, gaming, and governance.
  • User Burden: Managing 5+ incompatible identity wallets.
0%
Interoperability
5x
Friction
02

The Oracle Centralization Risk

In the absence of native, verifiable cross-chain proofs, applications will rely on trusted oracles and bridges (like LayerZero, Wormhole) to attest to identity states. This reintroduces a single point of failure and trust assumption, the very antithesis of decentralized identity.

  • Attack Surface: Compromise the oracle, compromise all linked identities.
  • Cost: Adds ~500ms-2s latency and extra fees for attestations.
1
Trust Assumption
+200ms
Latency Penalty
03

The Privacy Paradox Collapse

Proprietary proof systems force users to generate chain-specific ZK proofs for each action, multiplying the privacy leak surface. Correlation attacks across chains become trivial, as unique proof "fingerprints" can be tracked by analytics firms like Nansen or Arkham.

  • Outcome: Pseudonymity is destroyed.
  • Data Harvesting: Identity graphs become a $10B+ surveillance market.
100%
Traceable
$10B+
Surveillance Market
04

Developer Nightmare & Stagnation

Building a universal identity app requires integrating N custom proof verifiers. Development time and audit costs skyrocket, stifling innovation. Teams like Uniswap Labs or Aave will deprioritize identity features, locking the space in a primitive state.

  • Consequence: ~12-month delay in advanced identity-native applications.
  • Cost: 10x increase in integration engineering overhead.
10x
Dev Cost
12mo
Innovation Lag
05

The Regulatory Arbitrage Loophole

Fragmented standards create jurisdictional havens. A protocol on a chain with weak identity proofing (e.g., Tron) becomes a KYC/AML bypass, attracting illicit activity. This paints the entire industry with a broad brush, inviting draconian, blanket regulations that crush legitimate innovation.

  • Risk: FATF Travel Rule applied indiscriminately to all chains.
  • Result: Compliance becomes impossible for legitimate builders.
Global
Regulatory Blast Radius
100%
Industry Liability
06

Capital Inefficiency & Stifled TVL

Without a universal proof, identity-based capital efficiency (e.g., using a credit score across chains) is impossible. Billions in TVL remain locked in over-collateralized positions because reputation cannot port. Projects like MakerDAO and Aave cannot safely undercollateralize, capping DeFi's total addressable market.

  • Impact: $50B+ in potential capital efficiency remains untapped.
  • Growth Cap: DeFi TVL stagnates below its theoretical ceiling.
$50B+
Inefficient Capital
-80%
Growth Potential
future-outlook
THE STANDARDIZATION IMPERATIVE

The 24-Month Outlook: Convergence or Collapse

The viability of interoperable decentralized identity hinges on the establishment of a universal zero-knowledge proof standard.

Universal ZK standard is mandatory. Without a common proof format, each chain or application like Polygon ID or Worldcoin creates a walled verification garden. This fragmentation defeats the core purpose of a portable, self-sovereign identity.

Proof systems are not interchangeable. A zk-SNARK from zkSync is unintelligible to a zk-STARK prover on Starknet. This incompatibility forces users to re-prove credentials for every new ecosystem, creating prohibitive cost and latency.

The market will consolidate around one dominant format. The current multi-standard landscape mirrors early EVM vs. WASM battles. Network effects and developer adoption, driven by projects like Ethereum's PSE and RISC Zero, will force convergence on a single, efficient verification primitive.

Evidence: The EIP-7212 standard for secp256r1 verification demonstrates how a single cryptographic primitive, once standardized, becomes ubiquitous infrastructure. A similar path is inevitable for the ZK proof that underlies verifiable credentials.

takeaways
THE INTEROPERABILITY IMPERATIVE

TL;DR for CTOs & Architects

Fragmented identity proofs are the silent killer of cross-chain composability. Here's why a universal ZK standard is non-negotiable.

01

The Walled Garden Problem

Every chain or L2 (Arbitrum, Optimism, zkSync) issues its own attestations, creating siloed identity states. This breaks composability for DeFi, gaming, and social graphs.

  • Friction: Users re-verify per chain, destroying UX.
  • Fragmentation: A user's on-chain reputation on Ethereum is invisible on Solana.
10+
Siloed States
~0%
Portability
02

The Universal Verifier Standard

A single ZK proof format (e.g., a Plonkish arithmetization) that any chain's light client can verify. Think of it as a common cryptographic Rosetta Stone for identity.

  • Interoperability: Proof from Chain A is natively valid on Chain B.
  • Developer Leverage: Build once, deploy everywhere without custom verifier contracts.
1
Proof Format
N
Chains Supported
03

The Privacy-Preserving Graph

Universal ZK proofs enable selective disclosure across ecosystems. Prove you're a Uniswap LP or an ENS holder without revealing your entire wallet history.

  • Composability: Private credentials become portable assets for applications like Aztec, Noir, or Sismo.
  • Security: Minimizes attack surface vs. bridging raw data via LayerZero or CCIP.
Zero-Knowledge
Data Exposure
100%
Selective Control
04

The Cost of Non-Standardization

Without a standard, each interoperability bridge (Across, Wormhole) must implement custom, expensive verification. This creates systemic risk and unsustainable overhead.

  • Gas Inefficiency: Custom verifiers cost ~1M+ gas per proof check.
  • Security Debt: Each custom implementation is a new attack vector for protocols like Chainlink CCIP.
-90%
Gas Potential
10x
Attack Surface
05

The StarkNet & zkSync Precedent

These L2s have built-in ZK provers. A universal standard would allow them to become identity hubs, verifying proofs for the entire ecosystem and monetizing verification.

  • Architectural Advantage: Leverages existing high-performance provers (Cairo, Boojum).
  • New Revenue: Verification-as-a-Service for lighter chains like Polygon or Avalanche.
~500ms
Proof Gen
New Biz Model
For L2s
06

The Path to Adoption: EIPs & Aggregators

Standardization will follow the ERC-20 playbook. It starts with an EIP, is adopted by major wallets (MetaMask, Rainbow), and aggregated by layers like Lit Protocol or Oracle networks.

  • Critical Mass: Requires buy-in from Ethereum Foundation, OP Stack, and Cosmos IBC teams.
  • Outcome: Enables true cross-chain intent systems (UniswapX, CowSwap) with verified user states.
EIP-XXXX
Starting Point
Universal
User Layer
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Why DIDs Need a Universal ZK Proof Standard | ChainScore Blog