There is something quite magical. Your wallet address was suddenly marked as high risk by some compliance tool. Then you find out that you are restricted from interacting with several DApps. CEX withdrawals are also stuck. You go check why. No one gives you a clear answer. Because the risk control model is a black box. It might just be that you had an indirect interaction with an address that was later sanctioned three months ago. Crypto users in the Middle East are more sensitive to this. Geopolitical reasons lead to certain countries' IPs or address ranges being indiscriminately marked. Clearly, you are a normal user but have been collateral damage.
What’s even worse is that you have no idea who marked you. What the basis of the marking is. Is there an appeal channel? The whole system is completely opaque to ordinary users.
The Offchain Attestation mechanism in the white paper @SignOfficial is quite interesting here. Only a lightweight record is left on-chain. The attester's address and a timestamp. It doesn’t expose any specific data. Your compliance status is evaluated off-chain by authorized institutions. On-chain only records the conclusion of attestation that this address has passed the compliance check.
Designed in conjunction with the Bitstring Status List. Once your compliance status is restored to normal, the status list is updated in real time. Any verifier will find the latest status instead of outdated markings. You won’t be permanently branded because of an indirect interaction three months ago.
The key is transparency. You can actively query your status attestation. You know who issued it, when it was issued, and on what basis. It is no longer a black box.
As regulatory tightening increases, the $SIGN protocol call volume for this scenario increases as well. Each attestation of compliance status issued, every status update is a real consumption.