7.3 Identity & Compliance Layer

Introducing privacy-preserving compliance tools like zkID and risk profiling to enable institutional adoption.

In this stage, VeilNet balances the need for absolute privacy with the practical demands of enterprise and institutional adoption. Rather than compromising on anonymity, VeilNet introduces optional identity layers that protect users while enabling integrations in regulated environments.

• Zero-Knowledge Identity Proofs (zkID): Users can verify compliance (e.g., KYC checks) without revealing actual personal data, ensuring enterprises can adopt VeilNet without undermining user privacy.

• Privacy-Preserving Audit Trails: Introduction of encrypted logging mechanisms that allow businesses to meet compliance requirements while still shielding transaction-level details from external exposure.

• AI-Driven Risk Profiling: Expansion of the Threat Graph AI to include behavioral identity models. Instead of tying users to traditional identities, VeilNet creates anonymous trust scores, giving platforms a way to assess counterparties without requiring deanonymization.

This phase bridges the gap between consumer-grade privacy and enterprise adoption, opening doors to larger-scale partnerships in DeFi, fintech, and institutional sectors.