Web3 Compliance Without Compromising Privacy

The First zk-Based Infrastructure for Secure, Private On-Chain Identity & Tax Compliance
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On-Chain Compliance Tools

Mercury provides a convenient tool for individual users, protocol developers, and government departments for on-chain identity verification and tax compliance through Verifiable Credentials (VC) and an on-chain tax labeling system, ensuring that on-chain activities comply with regulatory requirements.

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Privacy Protection

Based on Zero-Knowledge Proof (zkProof) technology, Mercury minimizes the exposure of user data, allowing users to verify their identity and transaction legality without disclosing raw information (e.g., transaction details or identity data), achieving a dual win for privacy protection and compliance needs.

Unified On-Chain Identity

Mercury introduces the concept of a unified identity using TRID (Tax Residency DID) as an identity anchor, aggregating cross-chain addresses and behavioral data to create a trusted on-chain tax residency identity system, providing a one-stop identity management and tax compliance experience.

AI-Driven Transaction Analysis

Through the FinTax module, Mercury combines AI-driven transaction nature analysis with user-provided annotations, constructing the most comprehensive on-chain transaction nature database, offering robust data support for tax reporting, on-chain behavior analysis, and compliance audits.

FAQ

What's the competitive differentiation and future vision of Mercury Protocol

In the competitive landscape, Mercury Protocol has established a significant differentiation advantage through full-chain coverage and technological innovation. Existing on-chain identity protocols (e.g., Civic, SelfKey) focus on KYC services for individual blockchains and lack cross-chain identity aggregation capabilities, while tax tools (e.g., Koinly, TaxBit) primarily rely on manual user input and struggle to handle complex cross-chain transaction scenarios. In contrast, Mercury Protocol unifies cross-chain identities through TRID, builds the most comprehensive on-chain transaction nature database with its FinTax module (combining AI and user annotations), and uses Zero-Knowledge Proof technology to find a balance between privacy and compliance. This comprehensive advantage—full-chain coverage, AI-driven, and privacy-first—makes Mercury stand out in the market.

What's the target market and user value

Mercury Protocol’s target market spans multiple key participants within the Web3 ecosystem, with a precise focus on addressing the needs of different user groups:• Individual Users: Targeting cryptocurrency holders, tax-sensitive traders, and Web3-native users with strong privacy demands, Mercury Protocol helps simplify the tax reporting process and protect personal data.• Business Clients: Serving public chains and DeFi protocols (e.g., Polygon, Aave) that need compliance upgrades, providing VC verification services and compliance modules to help meet regulatory requirements without sacrificing user experience.• Government Clients: Supporting tax and financial regulatory departments (e.g., the IRS in the U.S., ESMA in the EU) seeking on-chain regulatory technology solutions, aiding efficient on-chain audits and risk management.

Core Value Mercury Protocol Brings to Different User Groups

• Individual Users: One-click tax reporting (generating compliance certificates through TRID and FinTax), reducing privacy risks and allowing users to participate in the Web3 ecosystem with peace of mind.
• Business Clients: Modular compliance solutions (VC verification services seamlessly integrated into smart contracts), achieving ecosystem win-win through revenue-sharing mechanisms (VC verification revenue sharing).
• Government Clients: Transparent and trusted on-chain regulatory tools (regulatory interfaces and risk scoring APIs), enabling efficient regulation while protecting user privacy.

Competitive Differentiation and Future Vision

Mercury Protocol has established a significant competitive advantage through full-chain coverage and technological innovation:
• Compared to Existing Identity Protocols: Unlike single-chain KYC services like Civic and SelfKey, Mercury achieves cross-chain identity aggregation through TRID, offering more comprehensive identity management.
• Compared to Tax Tools: Unlike Koinly and TaxBit, which rely on user manual inputs, Mercury enhances tax reporting accuracy and efficiency through AI and full-chain data integration.
• Technical Barriers: Zero-knowledge proof technology ensures a balance between privacy and compliance, creating a difficult-to-replicate technological moat.