High Tower
@htwtech
1/17 Been digging through @AlbusProtocol docs. Interesting approach to the whole compliance vs privacy problem that most projects ignore. https://t.co/3dVw0iO1cZ 2/17 Albus is building a privacy-preserving compliance engine for DeFi. As regulations like MiCA and FATF Travel Rules ramp up, anonymous high-volume trading faces extinction. Albus isn't fighting this - they're adapting.
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High Tower
@htwtech
3/17 The core concept: embedding KYC verification into non-transferable NFTs. Your data stays encrypted, and you control what's shared. Instead of exposing your birthdate, you just prove you're over 18 through cryptographic means.
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High Tower
@htwtech
4/17 Technical implementation is built on strong foundations: 🔸Soulbound identity NFTs (non-transferable) 🔸Verifiable Credentials (W3C standard) 🔸Zero-knowledge proofs (Groth16 zk-SNARKs) 🔸Multi-party encryption (Shamir's Secret Sharing) 🔸Cross-chain compatibility layer 5/17 When you complete KYC, providers issue Verifiable Credentials stored in your identity NFT. For verification, you create a VP with zero-knowledge proofs.
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High Tower
@htwtech
6/17 Computational complexity is a real challenge. ZK proofs demand resources. Albus handles this by offloading some computation off-chain. Makes practical sense but introduces centralization elements that need monitoring.
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High Tower
@htwtech
7/17 Their token economics revolve around identity reuse. When your verified identity NFT is used across platforms, both you and the original verifier get rewarded. This solves a key pain point - businesses typically pay for each KYC but get nothing back. With Albus, your first KYC investment can be monetized when that user accesses other platforms.
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High Tower
@htwtech
8/17 Real-world implementation already exists with @curio_invest - a platform tokenizing physical assets like luxury cars and fine art. Not just a whitepaper project. They're processing actual users and transactions now. 9/17 Albus is expanding to Neon EVM for cross-chain functionality. Also received support from Solana Foundation via a grant. Their cross-chain strategy seems sound, though maintaining consistent identity verification across chains presents technical challenges.
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High Tower
@htwtech
10/17 Security approach uses Shamir's Secret Sharing to distribute encryption keys across multiple trustees. Strong in theory, but trustees are human points of potential failure. 11/17 The protocol aligns with key regulatory requirements: • KYC/AML verification (FATF recommendations) 🔸Data retention for audits (5+ years) 🔸User consent and control (GDPR compliance) 🔸Travel Rule for transfers above thresholds 🔸Privacy by design principles
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High Tower
@htwtech
12/17 Clear regulatory alignment with MiCA and upcoming EU frameworks. But question remains: how quickly will regulators accept ZK proofs as valid verification tools? 13/17 Comparing Albus to similar projects: 🔸@worldcoin: focused on proof-of-personhood via biometrics, not compliance 🔸Polygon ID (@0xPolygon): identity toolkit without built-in compliance framework 🔸@zkPass: ZK proofs from web accounts, not credential-based 🔸@Fractal_ID: traditional centralized KYC
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