2025-08-30
In December 2024, Hong Kong HashKey Exchange completed comprehensive access to the cross-chain identity protocol CCID. Its cold wallet adopts a 2-of-3 multi-signature scheme, and the private key sharding is stored in the hardware security module (HSM) of Hong Kong, Singapore, and Switzerland. Both places need to be authorized at the same time to withdraw the currency, achieving dual protection of asset security and compliance traceability. This practice is a typical application of Web3 technology architecture in the financial field - through blockchain, smart contracts, and distributed storage, to build a new type of Internet where users control data and value.
The technical architecture of Web3 can be divided into four layers.
From Bitcoin's PoW to Ethereum 2.0's PoS, the consensus mechanism has been continuously optimized. PoS reduces energy consumption by 99.95% through staking tokens instead of computing power competition, while improving transaction processing speed. The KYT system of HashKey Exchange, combined with the 400 million address tag library, utilizes the efficient verification ability of PoS to identify risky transactions with an accuracy rate of 97%, and processes over 42,000 compliance transactions in 2024.
Web3 allows users to control their data through the Distributed Identity Protocol (DID). For example, users can store their academic credentials on the blockchain and selectively disclose information during job applications through zero-knowledge proof technology without having to submit it repeatedly to each platform. HashKey Exchange's VATP license upgrade directly submits the formal verification results of smart contracts to the Hong Kong Securities Supervision Commission, achieving transparency and automation in the compliance process.
Web3 shifts the internet from "ad-driven" to "value-driven". For example, Axie Infinity uses a Play-to-Earn model, allowing players to not only entertain themselves, but also earn cryptocurrency profits by participating in the ecosystem, with daily trading volume exceeding tens of millions of dollars. HashKey Exchange's hybrid storage model combined with on-chain Data Analysis dynamically adjusts lending rates to provide users with fairer Financial Services.
Decentralized exchanges (DEX) such as Uniswap enable trustless asset exchange through smart contracts, allowing users to interact directly with liquidity pools to avoid single-point risks on centralized platforms. HashKey Exchange's KYT system monitors on-chain transactions in real time, freezes illegal funds of over $1.58 billion in 2024, and promotes DeFi compliance.
DAO executes decisions through smart contracts, and members participate in governance through token voting. For example, holders of MakerDAO can vote to determine the collateral rate of stablecoin DAI. HashKey Exchange's compliance framework supports on-chain governance of DAO, and its smart contract formal verification results are recognized by the Hong Kong Securities Supervision Commission, providing a regulatory compliance path for DAO.
NFT (non-fungible token) provides a unique identifier for digital content. The OpenSea platform allows artists to directly sell their works, and the income is automatically distributed to the creators without the need for intermediaries to share. The cold wallet of HashKey Exchange adopts a multi-signature scheme to ensure the secure storage and compliance of NFT assets.
The essence of Web3 is to reconstruct the trust mechanism of the Internet through technology. From the cross-chain authentication of HashKey Exchange to the automated compliance engine of Chainlink, the industry is undergoing a transformation from "wild growth" to "rule reconstruction". Users need to be vigilant: platforms that are not connected to the KYT system may have blind spots in asset traceability due to compliance vulnerabilities. In the future, with breakthroughs in technologies such as Quantum Computing and neural symbol systems, Web3 may usher in a more thorough paradigm revolution.