Decentralised Identity Solutions Touted as Next Big Leap in Blockchain Adoption
Summary:
Cardano's Sustainability Lead, Alexandre Maaza, suggests that decentralised identity solutions could be the next big step for blockchain adoption, attracting millions of new users. He emphasizes the need for non-speculative use cases to encourage mainstream adoption. Meanwhile, Ton Foundation’s Director of Investments, Justin Hyun, believes that the next 500 million users will need simple apps with actual usability. Despite the early stage of the technology, some regions are already exploring decentralised IDs to enhance data privacy, highlighting the potential for these solutions to become instrumental in the future of blockchain technology.
Cardano's Sustainability Lead Alexandre Maaza has indicated that the next big step for blockchain adoption could be decentralised identity solutions. Maaza stated during a panel discussion at the Web3 Corporate Innovation Day that blockchain technology currently lacks concrete use cases that would draw the next generation of adopters. However, the emergence of blockchain-based decentralised identity could offer a compelling "killer" use case that attracts millions of new users. According to Maaza, Web3 is still missing a scalable, impactful use case relevant to businesses and individuals.
Decentralised IDs of Web3 are privacy-centric solutions that allow users to share the bare minimum data required for their verification, rather than divulging sensitive personal data. These solutions also allow users to retract their information using seed phrases as the identities are stored in the users' crypto wallets. This has been significantly beneficial for privacy preservation.
Alexandre Maaza further emphasized that blockchain technology requires a non-speculative use case to draw mainstream acceptors, besides the cryptocurrency hype that is typically driven by retail investors seeking profit. He stated that a use case engaging billions, not based on speculation, could bring this kind of technology to the forefront.
Justing Hyun, the Director of Investments at Ton Foundation, agreed, saying the next 500 million users could be attracted by simple applications with real usability, such as the blockchain-based Telegram mini apps, the "Trojan horse" for mass blockchain adoption. Hyun added that it is crucial to simplify the complexity for users to reach their target of onboarding 500 million users by 2028.
While most companies don't consider developing a decentralised ID solution a profit-making venture, these solutions could lead to significant savings by preventing potential data breaches. According to Maaza, digital identity can be valuable for data-harvesting businesses. Protecting customer data can turn out to be a cost centre for many businesses when breaches result in significant damage control expense.
Notably, Cardano is amongst several blockchain networks who are constructing their own independent digital identity wallets. Despite the technology still being in its early stages, some regions, including Istanbul, are beginning to examine decentralised IDs. The city utilises Omchain's proof-of-identity (PoI) to improve data privacy, which does not require database queries for authentication.
Published At
6/14/2024 5:00:52 PM
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