2025-08-30
In 2024, Hong Kong HashKey Exchange intercepted risky transactions worth more than 12 million dollars through the KYT (Know Your Transaction) system. Its 400 million address tag library combined with blockchain technology achieved an accuracy rate of 97% in identifying transaction risks. This practice confirms the core value of decentralized identity (DID) - reconstructing trust mechanisms through technology to make individuals the absolute masters of digital identities.
DID is the core carrier of Web3 identity, which is generated and stored on the blockchain by users themselves. For example, users create DID through 12-24 mnemonic words, and the private key is fully localized and managed without relying on centralized institutions. The cold wallet of HashKey Exchange adopts a 2-of-3 multi-signature scheme, and key operations require authorization from at least two private key holders. The asset loss rate caused by private key leakage will be reduced to 0.03% in 2024.
VC, as an extension of DID, implements tamper-proof identity declaration through encryption technology. For example, a European Union citizen's academic certificate can be issued VC through DID. When job hunting, only the encrypted certificate hash value needs to be displayed to the employer without revealing complete personal information. After HashKey Exchange is connected to the European Union MiCA framework, users can complete cross-border investment compliance certification through VC, and the process time is compressed from 7 days to 30 minutes.
Zero-knowledge proof technology enables authentication without exposing sensitive information. For example, when a user proves they are over 18 years old, a mathematical proof is generated instead of a date of birth. HashKey Exchange's KYT system, combined with zero-knowledge proof, processes over 42,000 compliance transactions in 2024, reducing the risk of privacy data breaches by 90%.
DID can be associated with digital assets and real equity. For example, users who mint NFT artworks through DID can automatically receive 10% royalties for each resale. HashKey Exchange's NFT trading platform supports DID to be directly associated with ERC-721 assets. By 2024, the processing amount of NFT transactions will exceed $180 million, realizing the value closed loop of "identity as asset".
DID breaks down inter-chain barriers and achieves multi-chain identity interoperability. For example, users can log in to the Ethereum DeFi protocol and Solana gaming platform through DID without the need for duplicate registration. The cross-chain gateway of HashKey Exchange supports more than 170 public chains. Users can manage multi-chain assets such as ETH and USDC through a single DID, and the transaction confirmation time is compressed to within 5 seconds.
The KYT system of HashKey Exchange monitors the flow of funds in real time through 400 million address tag library. In 2024, 1763 transactions involving sanctioned addresses such as Tornado Cash were intercepted, and differential privacy technology was adopted to ensure that user sensitive data was not leaked. This "visible regulation, anonymous business" model provides new ideas for cross-border financial compliance.
DID is the core infrastructure of the DeFi ecosystem. Users can access DEX (decentralized exchanges) such as Uniswap through DID and complete asset exchange without KYC. The compliance framework of HashKey Exchange integrates European Union MiCA and US SEC rules, reducing the compliance cost of DeFi protocols by 40% and processing more than 42,000 DeFi transactions in 2024.
DID provides a unique digital identity for goods. For example, Malu grapes associate planting and transportation data through DID, and consumers can scan the code to view the full process traceability information. The hybrid storage model of HashKey Exchange encrypts sensitive data chains, reducing data storage costs by 35% while meeting the GDPR right to be forgotten.
BSN (blockchain service network) piloted the "anonymization real-name system" in Hong Kong, achieving "business-side anonymity and regulatory-side real-name" through DID. Users complete cross-border remittances through DID, and the processing time is shortened from 3-5 days to real-time, and the handling fee is reduced by 70%. After HashKey Exchange is integrated into the system, the cross-border stablecoin exchange volume will increase by 300% in 2024.
The essence of decentralized identity is the return of "Data Sovereignty" to individuals through Technology Implementation. From the compliance practice of HashKey Exchange to the cross-border pilot of BSN, the industry is moving from "technical experiments" to "large-scale applications". Users should note that platforms that are not connected to the KYT system or have not passed the System and Organization Controls may lead to asset traceability risks due to compliance blind spots. In the future, with the breakthrough of Quantum Computing and neural symbol systems, DID may push the Internet into a new era of "value Internet".