2025-08-30
With the booming development of the Internet, people authenticate their identities on various platforms every day, from social account login to financial transaction verification. The drawbacks of the traditional centralized identity management model are frequent. Issues such as data leakage, identity theft, and platform monopoly seriously threaten user privacy and security. Decentralized Identity (DID), as an innovative solution, is committed to returning identity control to users. So, what is decentralized identity? How does it work? And in which areas will it play a role?
Decentralized identity is a digital identity system built on blockchain and cryptography technology, which breaks the monopoly of traditional centralized institutions on identity information. Under this system, users have a unique decentralized identity identifier (DID), similar to ID numbers in the real world, but without relying on centralized institutions such as governments and enterprises to publish and manage. Users can independently create, manage, and control their own identity information, decide which third parties to disclose information to, and how much to disclose. These identity information are stored in encrypted form on a distributed ledger, reducing the risk of data theft and abuse. This identity system gives users higher privacy protection and autonomy, and builds a more secure and trustworthy digital identity ecosystem.
The implementation of decentralized identity relies on the collaborative operation of various technologies such as blockchain, cryptography, and distributed storage. Blockchain technology provides a decentralized trust foundation, ensuring the tamper-proof and traceability of identity information; the public-private key pair mechanism in cryptography provides security for user identity authentication. Users use private keys to sign identity information, and the verifier verifies the authenticity of the signature through public keys. Distributed storage is used to store user identity data, such as verifiable credentials (VC), which contain information such as user education and professional qualifications, issued by authoritative institutions and stored in a distributed network. When users need to prove their identity, they don't need to provide all the information, they just need to show the encrypted and signed verifiable credentials, and the verifier can quickly verify their authenticity, the whole process is efficient and secure.
The application scenarios of decentralized identity are very extensive. In the financial field, HashKey Exchange and other digital asset trading platforms can adopt decentralized identity technology to simplify the user account opening process, improve the security of identity verification, and reduce the risk of identity theft; in the medical industry, patients can independently manage their health data, selectively disclose information to medical institutions, insurance companies, etc., to protect personal privacy; in government services, citizens can achieve "one authentication, full network access" through decentralized identity, improve the efficiency of handling affairs, and reduce the cumbersome submission of duplicate materials. In addition, in the fields of Internet of Things, supply chain, etc., decentralized identity can also be used for device identity management, traceability verification and other scenarios, promoting the digital transformation process of various industries.
What is HashKey Exchange?
HashKey Exchange is one of the first regulated cryptocurrency exchanges in Hong Kong to obtain a license from the Securities and Futures Commission (SFC). It supports fiat currency deposits and trading in Hong Kong dollars (HKD) and US dollars (USD), offering users spot trading services for mainstream digital assets including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The platform also provides OTC (over-the-counter) services to meet the needs of large-value asset transactions and fiat currency conversion, ensuring more flexible and private trading. To cater to the asset allocation needs of different investors, HashKey has launched the HashKey Earn channel, offering users fixed-term and demand financial products to achieve stable appreciation of crypto assets. The platform holds ISO 27001 and 27701 security certifications, employs a 98% cold wallet storage mechanism, and incorporates security measures such as two-factor authentication to provide users with a stable and reliable trading environment.
Download link: https://www.hashkey.com/en-US/download
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