Milestone 3 – December 2026: Trust, Privacy, and Interoperability

5.1 Privacy Phase 2

Privacy Phase 2 leverages advanced zero-knowledge proof systems to protect:

• Transaction participants

• Transaction amounts

• On-chain state transitions

while still enabling selective disclosure for compliance and regulatory oversight.

Full Transaction-Level Confidentiality

Privacy Phase 2 introduces full transaction-level confidentiality using advanced zero-knowledge proofs.

Protected elements include:

• Sender and recipient identities

• Transaction values

• State transition logic

Selective Disclosure

Selective disclosure mechanisms allow:

• Regulated entities to prove compliance

• Auditors to verify correctness without accessing raw data

• Lawful access under governance-approved conditions

This balances strong privacy with institutional accountability.

---

5.2 Cross-Chain Interoperability

KONET evolves into a multi-chain–connected network, enabling secure asset and data movement across heterogeneous blockchains. This allows developers and institutions to deploy applications that operate seamlessly across ecosystems.

Security-First Design

KONET's cross-chain design prioritizes security over convenience.

Interoperability mechanisms include:

• Light-client–based verification where possible

• Message-passing protocols with cryptographic finality checks

• Bridge governance aligned with validator consensus

Rather than acting as a single isolated chain, KONET becomes a connected execution and settlement layer spanning multiple ecosystems.

---

5.3 Decentralized Identity (DID)

KONET integrates Decentralized Identity (DID) as a foundational trust layer, enabling:

• User-sovereign identity management

• Verifiable credentials

• Secure interaction between on-chain and off-chain services

This is particularly critical for finance, public services, and regulated digital interactions.

Protocol-Level Trust Primitive

DID is integrated as a protocol-level trust primitive, not merely an application feature.

Core capabilities:

• On-chain identity anchors

• Verifiable credentials with off-chain storage

• Cryptographic linkage between identities and accounts

Enabled Interactions

This enables secure interaction between:

• Users and applications

• Institutions and citizens

• On-chain logic and off-chain systems

DID becomes the foundation for regulated access, compliance workflows, and trust-aware smart contracts.