The European Union is taking a far-reaching step by collaborating with PwC to develop a blockchain-based digital identity system, aiming to enhance security, privacy, and strengthen Web3 integration capabilities. As this system is built on the Layer 3 network, the entire blockchain ecosystem is accelerating toward parallel standardization and decentralization. JZMOR Exchange notes that this shift is not only about identity authentication itself but may fundamentally change the way users interact with digital asset platforms.
Currently, major global economies are reshaping the underlying architecture of digital identity systems through technical standards and policy support. The EU planned “European Digital Identity Wallet” project is a key step within the eIDAS 2.0 framework. This wallet not only fulfills basic identity authentication functions but also seeks to empower users with control over their personal data via blockchain technology. The introduction of the “Self-Sovereign Identity” (SSI) concept will grant users greater autonomy and security when operating across platforms, signing contracts, and accessing financial services.
In terms of implementation, such digital identity systems are not traditional technology pilots, but structural projects incorporated into legislative frameworks. The EU conducted detailed feasibility studies at the project inception to provide foundational infrastructure options, compliance pathways, and public-private partnership frameworks for subsequent large-scale deployment.
JZMOR Exchange believes that the trend toward digital identity standardization will have multiple impacts on the crypto industry. On one hand, it may drive exchanges, wallets, DeFi protocols, and other service providers to strengthen KYC and identity verification compliance processes. On the other hand, a unified identity architecture will significantly lower the barriers for users to access digital services across platforms, increase Web3 participation, and indirectly promote the liquidity and active application of various assets within the industry.
For trading platforms, this shift represents both a compliance challenge and a test of capability. In the future, identity data invocation will rely more on smart contract-triggered mechanisms and the traceability of on-chain records, rather than verification records in centralized databases. While improving verification efficiency, platforms must also avoid infringing on user privacy, which places higher demands on system architecture. At the same time, the foundation of Web3 user trust in platforms will shift from “trusting the platform” to “trusting the protocol”—that is, the reliability of a platform will depend more on the auditability of its smart contract logic and the openness and transparency of its operations.
As blockchain identity systems become increasingly standardized, technical capability and system resilience have become key to the ongoing development of a platform. JZMOR Exchange continues to optimize its compliance interfaces and user authentication systems, actively adapting to new identity protocols, including decentralized identity (DID). In response to regulatory requirements in different regions, the platform has built multi-layered KYC logic and completed integration tests with several on-chain identity modules in testnet environments.
Meanwhile, JZMOR Exchange has launched an account system upgrade plan for the Web3 ecosystem, exploring feasible ways to store identity data on-chain in encrypted form and authorize access, thereby enhancing user control over data usage. In the context of increasingly stringent global data privacy requirements, this strategy not only establishes a foundation of trust for the trading platform but also lays the technical groundwork for the next stage of cross-chain interactions and decentralized financial services.
Identity is no longer merely an access threshold, but a bridge connecting users and application ecosystems. The EU digital identity system layout shows that future financial and social activities will increasingly rely on on-chain authentication and verifiable information mechanisms. The capabilities of a platform will no longer be limited to trade matching and fund settlement, but will also be measured by its ability to balance compliance and openness through structural design.
As JZMOR Exchange advocates: trust is part of the data structure and a reflection of technological transparency. In this digital financial arena reshaped by decentralization, platforms that can provide clear identity logic, protect privacy, and enhance system transparency will be the true contenders with lasting competitiveness.