Web3 Trust Infrastructure: Why KYC, KYB, and KYT Must Work Together

馃攼 Three pillars missing

By Hypersign
Feb 2, 2026, 4:33 PM
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The Three Pillars of Web3 Trust

For Web3 to scale globally, trust requires structured infrastructure built on three interconnected pillars:

- Identity (KYC): Establishes accountability by verifying real people behind wallets

- Ownership (KYB): Addresses entity-level risk by identifying companies, DAOs, and foundations controlling systems

- Activity (KYT): Monitors ongoing transactions to detect misuse in real-time

Why All Three Matter

Each pillar solves different trust problems.​ Using only one or two creates blind spots:

  • KYC without KYB misses entity-level risk
  • KYB without KYT ignores ongoing misuse
  • KYT without KYC lacks accountability

In borderless, fast-moving ecosystems, compliance must keep pace with activity, not just entry points.​

When these three pillars align, compliance becomes quieter, faster, and more trustworthy鈥攎aking Web3 ready for mainstream adoption.​

Decentralization works best with responsibility, not in spite of it.​

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KYC Systems Face Pressure to Evolve as Privacy Regulations Tighten

**The verification landscape is shifting.** Traditional KYC systems are struggling to keep pace with the reality of modern business鈥攐nline, on-chain, and globally distributed from day one. **The core tension:** Communities now move capital before formal structures exist, yet most verification systems remain rigid and data-heavy, designed for an older internet era. **What's changing:** - Privacy regulations are tightening worldwide - Verification methods must adapt to new compliance requirements - The gap between how businesses operate and how they verify users is widening The challenge ahead: building verification infrastructure that matches the speed and borderless nature of digital-native organizations while meeting evolving regulatory standards.

The End of Forced Consent: Building Internet on Verifiable Trust

The WhatsApp incident serves as a critical wake-up call for the internet's future direction. **The Shift Away from Centralization** - Current data messaging relies heavily on a handful of giant providers - This creates single points of failure and forces users into consent models - The next generation of internet infrastructure must move beyond this paradigm **Building on Verifiable Trust** The future internet will be built on: - Trustless, decentralized protocols - Verifiable trust mechanisms instead of forced consent - Distributed systems with no single point of failure **Why This Matters Now** The world moves fast, and the time to act is now. Reducing dependence on centralized providers isn't just about privacy鈥攊t's about creating a more resilient, trustworthy internet infrastructure that puts control back in users' hands. The transition from forced consent models to verifiable trust represents a fundamental reimagining of how we build and interact with digital services.

Global Platforms Face Scrutiny Over Geography-Based Privacy Standards

**Privacy rights shouldn't depend on location.** A growing debate questions why global platforms like WhatsApp offer stronger privacy protections to EU users while providing weaker safeguards elsewhere. **The core issue:** If platforms can protect users by design in Europe, why should users in India or other regions accept inferior privacy standards? - Privacy protections are currently **tiered by geography** - EU users benefit from robust data protection regulations - Users in other jurisdictions receive **weaker safeguards** **The fundamental question:** Should privacy be a universal right, or should it vary based on passports and jurisdictions? This debate highlights the need for **consistent global privacy standards** rather than geography-dependent protections.

US vs EU: WhatsApp's Split Privacy Standards Under CCPA and GDPR

**Different Rules, Different Privacy** WhatsApp operates under vastly different data-sharing standards depending on your location: - **馃嚜馃嚭 EU (GDPR)**: Strict limits on how WhatsApp shares user data with Meta for advertising. Users receive genuine choice with legally enforced privacy protections. - **馃嚭馃嚫 US (CCPA)**: Far more permissive data sharing. While users can opt out of some uses, default sharing remains active. Privacy protections are significantly weaker. **Same app, completely different privacy standards** based on geography.

EU GDPR Enforces Real Privacy Choice for WhatsApp Users Against Meta Data Sharing

**EU privacy law creates meaningful protection for WhatsApp users** Under GDPR regulations, WhatsApp faces strict limitations on sharing user data with Meta for advertising purposes. The key difference from other jurisdictions: - Users receive genuine choice rather than forced consent - Privacy protections are legally enforceable, not optional - Meta cannot implement take-it-or-leave-it data sharing policies This enforcement comes as Meta faces broader EU scrutiny. An ongoing antitrust investigation examines whether Meta's policy allowing AI providers access to WhatsApp data violates competition rules. The GDPR framework demonstrates how regulatory oversight can protect user privacy in messaging platforms, setting a standard that contrasts with less restrictive approaches in other regions.

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