Hey guys, I almost lost everything because of KYC loan verification.I applied for a stablecoin loan on a lending protocol. I had to do full KYC, uploading both sides of my ID card, 6 months of bank statements, home address, and detailed transfer history.Two weeks later, my bank account was hacked, and data leaked from the KYC provider. All my personal information was exposed just to prove I was eligible for the loan.
In real life, it's like applying for a house loan from a bank; you have to submit all the documents, and any employee can copy them. The risk is extremely high. @SignOfficial solves this with Selective Disclosure + ZK proofs in verifiable credentials.The issuer, bank or government, signs the VC once.
When you borrow, you only share proof of income greater than 50 million VND per month or sufficient collateral without revealing specific numbers, addresses, or any unnecessary details.The ZK verification check didn't show the full data.I like this because it drastically reduces the risk of leaks, provides real privacy, and is still trustworthy enough for banks to lend.
But I worry that if the issuer is slow to update the revocation, the old proof will still be valid, creating a risk window.This is the most practical aspect I see at Sign; it's not just theoretical SSI theory, but a solution to the daily pain points of KYC.