Every KYC Check Keeps Your Passport Scan 🪪 I ran two KYC checks last month, and both times I handed over a document that answers ten questions when the exchange had only asked one. $CC solved the institutional version of that problem by changing who gets to look, carrying settlement and collateral workflows for more than 30 institutions with each transaction visible only to the counterparties inside its sync domain. That confidentiality lasts exactly as long as the membership list stays correct, because anyone admitted to the domain reads the underlying data in full. Where that model limits who can look, shielded transactions on $ZEC hide the contents outright and seal sender, receiver and amount inside the transfer. Sealing also strips out any claim about who sent the funds, which leaves a verifier with nothing to check. So whoever reads my ID either sits on a list I already trust or accepts a yes with nothing behind it. Midnight breaks that trade by sending a proof and leaving the data where it sits. That proof can confirm I am over 18, or that my wallet clears a sanctions screen, while the birthdate and the name behind the answer stay on my device. A developer writes that rule in Compact, the smart contract language Midnight built for this, so the app receives a verified yes and never holds the file behind it. An app holding no document has nothing to lose in a breach and nothing to surrender when a regulator asks what it kept. Most of the identity problem turns out to be storage nobody wanted, because every check today leaves a copy somewhere and the argument has only been about guarding those copies. Selective disclosure removes the copy from the process entirely. I think the next wave of identity products gets judged on what they refuse to collect, because a database that was never built is the only one that cannot leak. #Privacy #Identity