Identity theft is a growing concern in the insurance industry. According to a Javelin Strategy & Research report, identity theft has risen in recent years, with over $17 billion stolen directly from U.S. . consumers in 20171 Blockchain technology, specifically Zero-Knowledge Proof (ZKP), Solidity, and Ethereum can provide a secure and efficient solution to prevent identity theft. Identity theft can have devastating consequences for its victims, including damage to their credit, finances, and reputation. The insurance industry is particularly vulnerable to identity theft, as it deals with sensitive personal and financial information on a daily basis. How Zero-Knowledge Proof Can Prevent Identity Theft in the Insurance Industry. ZKP can be used to verify an individual's identity without revealing any personal information. By using ZKP, insurance companies can verify the identity of their customers without storing sensitive personal information in a central database, which is vulnerable to hacks and data breaches. The three fundamental characteristics that define a ZKP include: If a statement is true, an honest verifier can be convinced by an honest prover that they possess knowledge about the correct input. Completeness: If a statement is false, then no dishonest prover can unilaterally convince an honest verifier that they possess knowledge about the correct input. Soundness: If the state is true, then the verifier learns nothing more from the prover other than the statement is true. Zero-knowledge: How It Works: Zero-knowledge proof (ZKP) algorithms are cryptographic algorithms that allow one party to prove to another party that a given statement is true without revealing any additional information beyond the mere fact of the statement’s truth. A common analogy used to explain ZKP is that of a person trying to prove they have visited a country. The verifier can ask a series of questions that only someone who has visited the country would know the answer to. If the person answers the questions correctly, the verifier can be certain that the person has visited the country. However, the person does not have to reveal additional information, such as the names of people they met while visiting the country. This way, sensitive information is protected. This innovative approach offers a potent shield against identity thieves. They can't steal what they can't see, making fraudulent claims based on stolen identities significantly harder to pull off. Building Using Solidity and Ethereum But how do we put ZK-Proofs to work in the insurance world? That's where , a programming language specifically designed for smart contracts on the comes in. Solidity Ethereum blockchain, Smart contracts are self-executing agreements stored on the blockchain, a decentralized and secure public ledger. In this scenario: Your identity information is encrypted and stored on the Ethereum blockchain using ZK-Proofs. Identity data encrypted: Insurance companies build smart contracts that interact with your encrypted identity data on the blockchain using ZK-Proofs. Smart contracts control access: When you file a claim, the smart contract automatically verifies your identity through ZK-Proofs without revealing your personal information. This allows for faster, more secure claim processing and minimizes the risk of fraudulent claims. Claims verification streamlined: Create a Solidity Identity Verification Smart Contract. Building a Solidity smart contract with zero knowledge (ZK), proofs involves implementing a system that allows parties to prove the authenticity of certain information without revealing the details of that information. In this tutorial, you'll create a basic smart contract for identity verification using ZK-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge) as an example. Prerequisites: Access Remix at Remix. Remix IDE: Zokrates Toolbox on Remix: Open Remix IDE and go to the "Plugins" section. Search for "Zokrates" and enable the plugin. Step 1: Write the Solidity Smart Contract // IdentityVerification.sol
pragma solidity ^0.8.0;

contract IdentityVerification {
    struct User {
        string name;
        string email;
        string country;
    }

    mapping(address => User) public users;
    mapping(address => bool) public isVerified;

    function verifyIdentity(
        uint256[2] memory a,
        uint256[2][2] memory b,
        uint256[2] memory c,
        uint256[3] memory input
    ) public {
        require(!isVerified[msg.sender], "Already verified");

        // Verify the zk-SNARK proof using the provided parameters
        require(verifyProof(a, b, c, input), "Invalid proof");

        // Mark the sender's address as verified
        isVerified[msg.sender] = true;
    }

    // Function to verify the zk-SNARK proof
    function verifyProof(
        uint256[2] memory a,
        uint256[2][2] memory b,
        uint256[2] memory c,
        uint256[3] memory input
    ) internal view returns (bool) {
        // TODO: Implement zk-SNARK verification logic here
        // Use Zokrates-generated verifier.sol or implement your own logic.
        // For simplicity, this example assumes you have a verifyProof function.

        // Replace the following line with your verification logic
        return true;
    }
} The contract is an ERC721 token representing identities. IdentityVerifier The contract owner can create identities using the function. createIdentity The function is called by the owner to verify an identity using a ZK-SNARKs proof. verifyIdentity Step 2: Write the ZoKrates Program Create a file named with the following content: root.zok def main(private field a, private field b){
assert(a * a == b);
return;
} Step 3: Compile the ZoKrates Program Open Zokrates Toolbox on Remix IDE. In this example, you will prove knowledge of the square root a of a number b: Click on " " to compile the ZoKrates program. Compile If no errors occurred, you should see a successful compilation message. Next, click on compute (Computes a witness for the compiled program.), and input the correct values in the fields and . a b The keyword field is the basic type we use, an element of a given prime field. The keyword private signals that we do not want to reveal this input but still prove that we know its value. If everything is successful, then you will get a response similar to this Computed successfully! Click on setup ( ); if the setup is successful, you will see this message. Click the button. Creates a proving key and a verification key accept If successful, you will get a similar response with a file created as verification_key.json {
  "scheme": "g16",
  "curve": "bn128",
  "alpha": [
    "0x210423c94fc66d164c8bd2468f84f8c9a7d968fa6387b3b93b0ceeac46fd82e5",
    "0x0ebb3f8d44c365d2d8f2e2291b462dba174119094a6d2b0ec2d4d8eb5c22022f"
  ],
  "beta": [
    [
      "0x081d89caafe161719b18d52eba13b4d49bbf1773df90ef557fecc15df3e754da",
      "0x175b8d80b480f5a657720e09187ea07e0f652646cb0eef8cac65101266b7d996"
    ],
    [
      "0x0de3c067c14984ff114248511f6ab765fef3ed50cb1976041f3a6050abe4de18",
      "0x206e47582c1032a44cdf5482d42d5f3efee886096f6b463f2ea1b12fdc005625"
    ]
  ],
  "gamma": [
    [
      "0x0ddca49b4ddd0e4d72d47577c8ff1e7b38f10236d09076ad34940f5a7dd6c551",
      "0x1257c4524fc1d08ccf3d2b400a6df7096b3023fe76cac8c88702e3b66e5faec6"
    ],
    [
      "0x10636e95862ef1dc713a1cde4a484e83702e4adf518eb7cc3c0f18c696d8647a",
      "0x126e8393f2e8d6d5e283b496f478203bd4778d36ac761970f8e25103b05c698a"
    ]
  ],
  "delta": [
    [
      "0x22beccba27f69307089b2204564cac62c6da1c36b8715ef5104c0a7995239a6d",
      "0x02e36e20e8398e7b894123f164e08cd36cce842893929901d00aed2adc939a63"
    ],
    [
      "0x07a981bf40998e83f012638d25a1aa6443144c87d8a559344879cdcd354004fe",
      "0x304d5624ba0c6331808865534aae8426c23b82ea908fc2f0ecf96e33318099e1"
    ]
  ],
  "gamma_abc": [
    [
      "0x0b51d2854f317c749ff6b08ae0a141b7910ef4f9f89cfe8792848da778a17292",
      "0x2f0183ef10bb7039a39c1fd99be786cae7243bccaf0efb15856a293d5f70691a"
    ]
  ]
} Click the Generate button to generate a proof for computation of the compiled program using the proving key and computed witness. Click the accept button, copy your Verifier inputs, and save it in a safe place; you will need it later. [["0x1899357b6a4dde55cf33faa0e44d0a20bc6493a5431b0cc08f725b9f72a2469a","0x148015243e143145b3156befd13f956b9384774bdfc028ce3de4b3573dbf596c"],[["0x2f255b3eaae2bb31993384cf5d7dd99a1298418a945a4fca963dea30089e7832","0x27419401db75b3494397179a8fb29df56d83661651380b9cd0911b01d73a7996"],["0x040a7240b43396c13acaf09a7623a931357e085e51507804e4d0f69290804951","0x118c58bbb70afc6eeb400c3c41b7a65462cc42fc1523ec0ca31d4aabcfcb983f"]],["0x2e93bc4b403285b54f7010585abd43baf1d9ded3c6ec45a8f5efcba5f66aae10","0x143ebda58260d826feddc28223505dcf95c2a7d5308b004348755e0a12c16323"]] Verify To validate the proof, go to the Deploy & Run Transactions plugin, paste the remix-compatible parameters into the verifyTx field, and click the transact button. Export Verifier and click the Export button; this generates a Solidity contract containing the generated verification key and a public function to verify a solution to the compiled program. If everything is successful, you will get a generated Solidity code. Compile your solidity smart contract by clicking on and this button Compile verifier.sol Solidity compiler Once you are done, go to , and choose from the dropdown list. Click Deploy. Deploy & run transactions plugin Verifier — verifier.sol If successful, you will get a response similar to this: [vm]from: 0x5B3...eddC4to: Verifier.(constructor)value: 0 weidata: 0x608...70033logs: 0hash: 0x2b9...89208
status	0x1 Transaction mined and execution succeed
transaction hash	0x2b9a4491c6063adfb13e1d594d3cb98cef9bbac44c4c14d60953b302dd989208
block hash	0xc225885a56852a274e6e22af6c52dd3b89a09a7294fb8c3f52c94c93a260afec
block number	2
contract address	0xd8b934580fcE35a11B58C6D73aDeE468a2833fa8
from	0x5B38Da6a701c568545dCfcB03FcB875f56beddC4
to	Verifier.(constructor)
gas	1229172 gas
transaction cost	1069141 gas 
execution cost	941773 gas 
input	0x608...70033
decoded input	{}
decoded output	 - 
logs	[] Conclusion The fight against identity theft in the insurance industry requires innovative solutions. By harnessing the power of Zero-Knowledge Proof, Solidity, and Ethereum, you can create a future where identities are secure, claims processing is streamlined, and trust is restored. While challenges remain in terms of technical complexity and industry adoption, the potential benefits of this technology are undeniable. Protecting policies and people from the invisible thieves of the digital age is no longer a futuristic dream but a tangible possibility within reach by embracing blockchain technology.

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