2025-08-30
By 2025, the compliance framework of Hong Kong HashKey Exchange will automate the user KYC (Know Your Customer) process through a decentralized identity system. Users can complete cross-border asset transactions through self-managed digital identities, reducing the risk of data leakage by 99% and improving verification efficiency by 300%. As the core infrastructure of Web3, Self-Sovereign Identity (SSI) allows users to fully control personal data through decentralized identifiers (DID) and verifiable credentials (VC), completely subverting the traditional centralized identity management model.
DID is a Unique Device Identifier based on blockchain or distributed ledger, similar to did: example: 123456 , without relying on centralized institutions such as governments or enterprises. Users generate DID through private keys and register DID documents on the chain, including information such as public keys, verification methods, and service endpoints. For example, after a developer creates DID on Ethereum, they can use a did-resolver tool to parse their DID documents and obtain associated information such as GitHub code repositories and ENS domain names. After the DeFi aggregator of HashKey Exchange integrates the DID resolution interface, the system automatically verifies the compliance of DID when users pledge assets. By 2025, cross-chain identity verification will be processed more than 500,000 times, and data consistency will be improved by 99%.
VC is an encrypted statement issued by institutions or individuals, using JSON-LD format and ensuring authenticity through digital signature. For example, a university issues VC to graduates through DID, including educational information and transcripts. Graduates can encrypt the VC and share it with recruiting companies, which verify its authenticity through on-chain verification. HashKey Exchange's compliance sandbox supports VC technology. KYC files uploaded by users are stored through IPFS to generate VC. In 2025, it processed cross-border data verification more than 2 million times, and the verification time was shortened from 3 days to 10 minutes.
SSI achieves "selective disclosure" through zero-knowledge proof (ZKP). When users prove to the hotel that they are "over 18 years old", they only need to provide encrypted proof without disclosing their date of birth. FL technology allows medical institutions to jointly train AI models while protecting patient privacy. A decentralized medical platform stores patient data through IPFS, and each node locally trains the model to generate a global model with an accuracy rate of 92% and the data is not in the domain. The risk control system of HashKey Exchange integrates ZKP technology, intercepting 99.7% of suspicious transactions by 2025, and reducing the verification time to 1.2 seconds per transaction.
Traditional KYC processes require users to repeatedly submit information such as ID cards and bank statements, while SSI allows users to complete identity verification through DID and VC in one stop. After integrating SSI technology into HashKey Exchange's cross-chain lending platform, when users pledge ERC-1155 tokens, the system automatically calls on the on-chain VC to verify asset ownership and credit rating. By 2025, the loan amount will exceed HKD 600 billion, and the bad debt rate will decrease by 42%.
In the metaverse, users create digital avatars through DID and manage virtual assets through VC. An NFT marketplace allows users to bind ERC-721 tokens to DID, and when users sell virtual clothing, the system automatically updates the asset records in the DID document. HashKey Exchange's metaverse platform allows users to log in and trade virtual assets with DID. By 2025, it will process NFT rights confirmation more than 500,000 times, and the cross-platform circulation efficiency will be improved by 10 times.
SSI promotes the digitization of real assets such as real estate and artworks. A real estate platform splits property certificates into ERC-721 tokens, which are associated with the owner's DID. Holders can vote on decoration plans and share rental income through smart contracts. The compliance framework of HashKey Exchange supports the blockchain of such assets. By 2025, more than 2 million real asset tokenization transactions will be processed, and the circulation cycle will be shortened from 30 days to 7 days.