FHeSIM: How Web3 human-centric credentials redefine digital identity sovereignty

Transform "human existence" into a mathematically verifiable cryptographic object. By converting biometrics into immutable privacy-preserving credentials via FHE KYC and anchoring them to the physical world through eSIM technology, we’re not just upgrading infrastructure - we’re launching a paradigm shift in digital identity sovereignty.

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Introduction

When web3's "anonymous freedom" collides with the real world’s "identity wall"

In 2023, the collapse of Axie Infinity, a blockchain game once hailed as a poverty-alleviating tool, shocked the globe. At its peak, this "Play-to-Earn" game attracted over 2.7 million Filipino players (40% of its global user base), who earned daily income through in-game tokens. Yet, when the token’s value crashed, many found themselves locked out of converting digital assets to fiat currency due to centralized exchanges’ KYC requirements - highlighting Web3’s existential paradox: the anonymity that empowers its utopian vision becomes its Achilles’ heel in the face of real-world compliance.

This crisis exposes Web3’s core dilemma: anonymity grants freedom but sacrifices identity sovereignty; compliance demands verification but strips privacy rights. Today, more than 1 billion people globally lack traditional identity credentials, trapped outside the digital economy because "proving you are you" still relies on phone numbers, IDs, and bank accounts.

Our answer: Transform "human existence" into a mathematically verifiable cryptographic object. By converting biometrics into immutable privacy-preserving credentials via FHE KYC and anchoring them to the physical world through eSIM technology, we’re not just upgrading infrastructure - we’re launching a paradigm shift in digital identity sovereignty.

Technical architecture

Encrypted biometrics + eSIM = Web3 human-centric identity

1. Fully Homomorphic Encryption (FHE): The holy grail of privacy computing

What is FHE?
Fully Homomorphic Encryption (FHE), long considered cryptography’s "crown jewel," solves a 30-year challenge: performing computations on encrypted data without ever decrypting it.

  • Limits of Traditional Encryption:
    Standard encryption (e.g., AES) protects static data. Any computation (e.g., identity checks) requires decryption, exposing raw data - the root cause of Facebook’s data breaches.
  • FHE’s Breakthrough:
    Imagine a locked safe (encrypted data). FHE allows external parties to classify, count, or perform complex operations on its contents without unlocking it. Data remains encrypted, yet results are verifiable.

Why FHE for Privacy - Centric Identity?
FHE achieves the impossible in identity verification:

  1. User Protection: Biometrics and documents stay encrypted end-to-end, eliminating leakage risks.
  2. Compliance: Service providers perform liveness checks, age verification, and more - with accuracy matching plaintext methods.
  3. Regulatory Balance: "Regulatory key sharding" enables lawful decryption for extreme cases (e.g., criminal investigations), harmonizing privacy and security.

2. ImHuman: redefining Proof-of-Human existence

ImHuman’s innovation lies in transforming biometric verification into a cryptographic process executed entirely in encrypted states:

  1. Split-Key Storage
    • Users generate a Client Key, split via Shamir’s Secret Sharing into three fragments stored locally, in the cloud, and on ImHuman servers. Retrieval requires two fragments, eliminating single-point failures.
  2. Liveness-to-NFT Minting
    • Initial facial scans generate 512-dimensional feature vectors, encrypted via Client Key and embedded into ImHuman NFTs. These store no raw biometrics - only homomorphically encrypted "crypto fingerprints."
  3. Encrypted Verification
    • During verification, new facial scans produce fresh vectors. Privanetix nodes compute similarity scores entirely in encrypted form.
  4. Dynamic Thresholding
    • Decrypted similarity results trigger timestamped credentials if exceeding preset thresholds.

3. eSIM: Anchoring digital identity to the physical world

Traditional SIMs rely on centralized systems. eSIM + FHE KYC unlocks unprecedented possibilities:

  • Zero - Residue Binding:
    eSIMs bind to ImHuman NFT credentials, not raw biometrics. Carriers validate credentials without accessing phone numbers, IDs, or facial data.
  • Loss - Resistant Recovery:
    Lost device? Restore via ImHuman:
    1. Recover Client Key using two key fragments.
    2. Verify identity via encrypted checks.
    3. Auto-issue new eSIM - no sensitive data required.

4. Service bridge protocol: balancing privacy & compliance

For regions requiring strict KYC:

  1. Operator - Service Provider Isolation:
    • Operators return only FHE verification results ("pass/fail"). Service providers never access eSIM numbers or KYC data.
  2. Minimalist Decryption Sandbox:
    • Legal disclosures (e.g., anti-money laundering) require user-authorized decryption of specific fields (e.g., nationality).

Use cases

From theory to reality

Case 1: eSIM recovery revolution – lose your device? you’re still you

A tourist loses his phone in the desert. Traditional SIM recovery demands passports and local proofs - impossible for digital nomads. With ImHuman:

  1. New phone → ImHuman app → facial scan.
  2. Rebuild Client Key → encrypted biometric match.
  3. Carrier auto-issues replacement eSIM.
    Breakthrough: Carriers never store passports or numbers - recovery is cryptographic.

Case 2: Web3 wallet’s biometric recovery

Decentralized wallets integrate ImHuman:

  • Lost private key? Trigger recovery via eSIM-bound credential.
  • FHE verification confirms biometric ownership.
  • New key generated; old key revoked.
    Value: Eliminates seed phrases - biometrics become the ultimate backup.

Case 3: Privacy - compliant virtual cards

Virtual card platforms adopt bridge protocols:

  • Users apply with eSIM credentials.
  • Issuers program rules (e.g., "Nationality: X," "Age ≥18" via FHE-verified birth year ranges).
  • High-value transactions trigger dynamic liveness checks.

Why this is irreversible

The paradigm shift

We stand at a historic inflection point: For the first time, humans can mathematically prove "I exist" without surrendering control over their identity. This isn’t just a technological leap - it’s a milestone for digital human rights.
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