Today's biggest melon, Coinbase KYC data leaked a lot, and the Chinese area has not seen relevant discussions. Industry sources estimate that the incident caused at least hundreds of millions of dollars in losses to the exchange and dealt a heavy blow to its business reputation. A few quick things to say about cryptography and digital identity fraud: 1. The KYC data in the hands of various virtual asset service institutions such as exchanges is basically a time bomb. Once an accident happens, it will hurt the muscles and bones, and the door will be closed at the worst. 2. Many financial institutions are still storing sensitive data, including user KYC data, in clear text. /shrug 3. Encryption algorithms such as AES256 can already protect sensitive data. There is no way for an average hacking group to crack such encryption algorithms. But the problem is, they don't need to crack at all because it's easy to find password.txt files on the same server. 4. The design and implementation of a secure, reliable, flexible and convenient encryption, decryption and key management system is very, very difficult. It's even more difficult to use a simple and secure user interface to involve the company's non-technical executives in the management of permissions to encrypt data without introducing any additional security risks. 5. After the user's KYC data is stolen, criminals will use various means to defraud users in order to defraud their crypto assets. 6. The vast majority of scams succeed because of identity fraud. In other words, if users can identify the real identity of the person who emails, texts, calls them, in a very simple and effective way, then 99% of scams will not happen. 7. Tools to prevent fraud and data theft are like the latest body armor or airbags. No one cares before the accident, and it's too late to care after the accident. 8. Data encryption algorithms, secure and convenient key management, and digital identity fraud prevention are one of the best application scenarios of Web3/blockchain technology. Unfortunately, public chains such as ICP that focus on such scenarios generally do not receive much attention. Finally, whether it is public welfare, we will continue to make efforts in this direction.