The proposal suggests using zero-knowledge proofs, a cryptographic method that allows one party to prove to another that a statement is true, without conveying any information beyond the validity of the statement itself. This would enable users to prove their identity without revealing sensitive personal information. Buterin's proposal also includes the use of decentralized identifiers (DIDs), which are self-sovereign and give users control over their own identity data. DIDs are stored on a blockchain, making them tamper-proof and ensuring that users have full control over their identity information.