Sustainable Business Model for Service Communities and DAOs with Enhanced Privacy through Zero Knowledge Proofs

What is the Kyōdō Protocol

The Kyōdō Protocol is a system focused on the relationship between communities, employers, and professionals, with an emphasis on privacy and data security through Zero Knowledge Proofs (ZKP).

The protocol provides a software framework that resolves the issues companies encounter when hiring professionals, offers perks and proof of experience for these hired professionals, and enables a sustainable business model for communities, all while ensuring that sensitive data remains confidential.

All these are achieved by handling payments that companies make for services provided by community professionals, and by utilizing ZKP to verify transactions and credentials without revealing the underlying data.

The protocol serves as a payment gateway that distributes the received funds, issues and distributes tokens that symbolize community benefits to the professional, and logs the specific skills applied by professionals during their services, as a verifiable Proof of Resume, backed by ZKP for added security.

How It Works

For an in-depth explanation, click here

1. Community Establishment

Community leaders choose to adopt the protocol, setting a community fee on all services provided by community members. They also mint a unique community token for distributing rewards.

2. Member Participation

Members intending to use the protocol must pass identity (KYC) and anti-fraud (AML) checks to set up a verified account. They record contracts representing their agreed service delivery, detailing required skills, payment conditions, and other specific details. ZKP allows members to prove their identity without revealing personal details.

3. Payment Processing

Members issue invoices through the billing tool, which includes service charges and the community fee. The company settles this invoice in cryptocurrency to an address provided by the Protocol. The Protocol then allocates the payment, community fee, protocol usage fee, and the remaining amount to the member. It also records the skills used in the service and issues community tokens to the member, all while using ZKP to validate transactions without exposing sensitive data.

4. Validating Experience

The Protocol records each skill involved in service provision, generating a Proof of Resume for the professional. With ZKP, professionals can prove their skills and experience without revealing specific projects or clients. The member can mint a non-fungible token (NFT) to exhibit their skill proficiency, streamlining the hiring process for businesses.

5. Community Benefits

The community can use the income from the community fee to offer various benefits to its members, including training, courses, potential employment opportunities, and discounts at related establishments.

6. DAO Participation

If the community functions as a DAO, members can also acquire ownership and decision-making authority, steering the community based on their contribution. ZKP can be used in voting processes to ensure that votes are valid without revealing the voter's identity.

In a Nutshell

The Community implements the Protocol with ZKP features for enhanced privacy.

Contractors can hire within the Community with the assurance of ZKP-backed verifications.

Professionals earn Community Tokens and Badge NFTs as proof of skills, with ZKP ensuring their privacy.

The Community uses the Treasury accumulated with the Community Fee to offer benefits to Professionals.

The Contractor saves on staff benefits.

If the Community operates as a DAO, the Professional becomes the owner of the Payment Gateway they chose to use to receive their payments.

Last Updated:
Contributors: Daniel Cukier