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Why HSBC is Building a Decentralized Identity Solution With Polygon ID

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Summary

HSBC Labs is building a decentralized identity (DID) solution powered by Polygon ID, a self-sovereign, decentralized and private identity protocol. The DID solution will be used to open HSBC accounts, log in to accounts, make purchases, and apply for loans. Polygon ID is open source and supports open standards, allowing users to choose what information they want to share and with whom. HSBC chose the solution due to its focus on privacy, decentralization, and user data self-sovereignty. The article also highlights other Polygon projects, such as Wipro's Falcon Industrial Supply Chain Management Platform, OKX's zkEVM Layer 2 Network, and Polygon Village 2.0.

Q&As

What is Polygon ID and what does it offer?
Polygon ID is a set of decentralized identity tools with a strong focus on privacy, decentralization and user data self-sovereignty. It enables the exchange of verifiable credentials secured by cryptographic proofs (or zero-knowledge proofs) and the blockchain.

What advantages does Polygon ID have over traditional identity methods?
Polygon ID offers users control over their own identity, letting them choose what information they want to share and with whom. It also eliminates the need for time-consuming, repetitive identity verification processes and reduces privacy concerns.

How is HSBC using Polygon ID to create a decentralized identity solution?
HSBC Labs is prototyping a DID solution for internal account opening powered by Polygon ID. When a customer opens an HSBC account, the bank conducts KYC and creates a verified credential that later can be used for a number of transactions.

What are the benefits of using a decentralized identity for HSBC customers?
The benefits of using a decentralized identity for HSBC customers include the ability to provide their personal information securely and the ability to use the same identity across multiple platforms and use cases.

What other initiatives has Polygon ID been involved in?
Polygon ID has been involved in initiatives such as supporting the W3C open-source identity standard, integrating with both public and private ledgers, enabling the exchange of verifiable credentials, and collaborating with the NEAR Foundation to build a zkWasm L2 Prover as a component for Polygon CDK.

AI Comments

👍 This article demonstrates that HSBC's commitment to creating a secure decentralized identity solution with Polygon ID is a great step towards a more secure and efficient customer experience.

👎 This article does not provide enough detail about the potential security risks of using a decentralized identity solution.

AI Discussion

Me: It's about how one of the world's largest banking and financial services institutions, HSBC, is building a decentralized identity solution with Polygon ID. It's to help users control their own identity, and it's focused on privacy, decentralization, and user data self-sovereignty.

Friend: Wow, that's really interesting. What implications does this have?

Me: Well, it could revolutionize the way people prove their identity online. It could help make it more secure, efficient, and user-friendly. It could also give users more control over their personal information, allowing them to decide which data they want to share with whom. Furthermore, it could open up a whole new world of possibilities for financial services institutions, as they would be able to provide customers with a single, secure identity that can be used across multiple platforms and use cases.

Action items

Research more about Polygon ID and the W3C open-source identity standard.
Explore the Polygon ecosystem and its various tools and solutions.
Follow Polygon's blog, social channels, and other resources to stay up-to-date on the latest developments in decentralized identity.

Technical terms

Decentralized Identity (DID): A single, secure identity that can be used across any number of platforms and use cases, giving users control over their own identity and allowing them to choose what information they want to share and with whom.
Polygon ID: A set of DID tools with a strong focus on privacy, decentralization and user data self-sovereignty.
KYC: Know Your Customer, a process used by financial institutions to verify the identity of customers.
Verifiable Credentials: A type of digital credential that is cryptographically signed and can be used to prove a certain attribute about a person or entity.
Zero-Knowledge Proofs: A cryptographic technique that allows one party to prove to another party that they know a certain piece of information without revealing the information itself.
W3C: World Wide Web Consortium, an international standards organization for the World Wide Web.
Public Ledgers: A type of distributed ledger technology (DLT) that is open to the public and can be used to record and store transactions.
Private Ledgers: A type of distributed ledger technology (DLT) that is not open to the public and can be used to record and store transactions.