An innovative trial launched in collaboration between BSN and Flare, focusing on how real-name DID technology can meet compliance KYC requirements while ensuring user privacy. This trial relies on stablecoin application scenarios to explore the technical feasibility of anonymous real-name systems. (Background: Highlights from AMA) Flare Network x Red Date: Dual breakthroughs of stablecoins and decentralized identities for Chinese visitors to Hong Kong) (Background Supplement: Milestone moment for Flare! The first decentralized KYC identity for Chinese visitors to Hong Kong) This article is a promotional piece provided by Flare Network and does not represent the views of the Blockchain District, nor does it constitute investment advice or recommendations to buy or sell. See the end of the article for the disclaimer. On November 8 this year, Flare Network, a member unit of the Blockchain Service Network (BSN) Development Alliance, launched an innovative trial in Hong Kong, allowing residents of mainland China to register anonymously in a simulated stablecoin application, achieving "Anonymous KYC." Great thread about the @FlareNetworks x Red Date x @IDAfi24 stablecoin trial run! https://t.co/AD1jxWsu98 — Jehan Chu (@collectionist) November 13, 2024 Real-name DID service: Technical foundation and key features As one of four practical application scenarios in the cross-border anonymized real-name system trial based on real-name DID service (China RealDID) conducted by BSN and multiple parties, this innovative trial aims to explore how to use real-name DID services to achieve anonymous registration while meeting compliance KYC requirements, ensuring dual protection of user data privacy and compliance, and providing users with a seamless experience in the context of the Hong Kong government establishing a licensing system for fiat stablecoins. The real-name DID service was launched jointly by the BSN Development Alliance and the China Mobile Design Institute in collaboration with national authoritative identity management agencies, with the key feature being that users' real-name information is stored in the national population database. Combined with cryptographic technology-supported anonymous identity verification methods, users can achieve anonymous identity verification without exposing their privacy, while fully complying with policy and regulatory requirements, realizing "anonymous on the business side, real-name on the regulatory side." This innovative trial conducted by the BSN Development Alliance and Flare fully demonstrates how real-name DID services can enhance user privacy protection while ensuring that the entire business process fully complies with the requirements of the (Personal Information Protection Law of the People's Republic of China) and (Data Security Law of the People's Republic of China), providing convenience and security for cross-border identity verification and data circulation (such as the financial and digital application needs of mainland users in Hong Kong). China has 1.4Bn people. https://t.co/chl76K4KQj — Hugo Philion (@HugoPhilion) November 8, 2024 Trial Application Scenario: Simulated Stablecoin Registration Process First, users can choose to register and log in through the BSN real-name DID service mini-program in the simulated compliant stablecoin application, similar to logging in with accounts like WeChat or Google in traditional Web2. If users have not yet applied for a real-name DID, they need to first generate a private key and register their real-name DID in the mini-program. If users have already applied for a personal real-name DID and saved the personal private key locally on their phone, they only need to click to authorize login in the mini-program to complete identity verification. The stablecoin application will obtain the public user real-name DID documents from the BSN Yan'an chain through the real-name DID service, using the user public key in the real-name DID document to verify the signature of the user's private key, confirming the user's true identity and completing the registration. After registration, users can return to the stablecoin application to check their balance, generate a Flare-based stablecoin wallet address, and use various wallet functions such as recharging and scanning for payments. Highlights of Breaking Through Traditional KYC Processes Compared with traditional KYC processes, the biggest highlight of this trial is that throughout the registration process, users do not need to provide any personal identity information to the application, thus eliminating the risk of privacy data leakage. Through the real-name DID service, the system can ensure compliance with KYC processes while verifying and authorizing user identity anonymously through public and private keys, enhancing trust and privacy protection while reducing operational complexity, providing users with an almost seamless operation experience. This trial has verified the technical feasibility of cross-border privacy protection and anonymous KYC, specific operational processes, and data transmission. However, its specific business implementation still requires legislation from the Hong Kong Legislative Council regarding "anonymized real-name systems." In the long run, this trial provides a reference and technical scenario basis for future relevant legislation in Hong Kong. For mainland users, under the existing legal framework, this technology allows them to use banking services in Hong Kong, access compliant Web3 products, or participate in related financial services without being constrained by complex KYC processes, which not only improves service efficiency but also greatly enhances the accessibility and convenience of the cross-border fintech ecosystem. This trial not only verifies the significant enhancement of user privacy protection through the real-name DID service by achieving "business-side anonymity and regulatory-side real-name" but also fully demonstrates its potential in the compliant financial ecosystem, laying the foundation for expanding more innovative financial services. BSN will continue to collaborate with more partners to explore more possibilities between technology and finance, ensuring personal privacy security while meeting legal compliance requirements, providing users worldwide with a safer, more efficient, and compliant digital experience, and bringing more value and trust.