Cryptocurrencies

Decentralized identity (ID) solutions could be the next blockchain use case to join

Decentralized identity (ID) solutions could be the next blockchain use case to bring in the next wave of mainstream adopters, according to Cardano’s head of sustainability.

Speaking during a panel discussion at Web3 Enterprise Innovation Day, Cardano’s Alexandre Mazza said blockchain technology still lacks strong use cases to attract the next generation of blockchain users.

However, the emergence of decentralized blockchain-based identity solutions could be the next “killer” use case to attract millions of new users. Mazza said that the Cardano Foundation believes that Web3 still lacks a “scalable and scalable use case” relevant to businesses and individuals:

“One of the views we share in the company is that the digital identity of people, products, data and documents is one of those flagship applications that can evolve. »

Web3 decentralized credentials are privacy-focused solutions that allow users to provide only the minimum information required for verification, rather than sensitive personal data.

Decentralized identity users can also withdraw their information via seed phrases, as identities are stored locally in users’ cryptocurrency wallets – privacy-preserving solutions are becoming increasingly important.

Blockchain technology needs a non-speculative use case to attract the next billion users

Much of the hype around cryptocurrencies can be attributed to price speculation carried out by retail investors looking for profits. However, blockchain technology will need a non-speculative use case to attract large users, as Mazza also explained:

“I think the deadliest use case, where you’re talking about millions and billions of people, things represented on-chain, that aren’t inherently speculative, is what will bring this type of technology to the forefront. “

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Justin Hyun, chief investment officer at the Tone Foundation, also believes that onboarding the next 500 million users will require simple apps with “real usability,” such as blockchain-based Telegram mini apps, which could be a “Trojan horse” for widespread blockchain adoption. .

Speaking exclusively to Cointelegraph, Hyun said that removing user complexity will also be crucial to their goal of onboarding half a billion users:

“Bringing 500 million people on-chain by 2028 – which is our goal – will require use cases that interact with the blockchain without the user knowing upfront.”

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Decentralized identity can save businesses from data breaches

Although developing a decentralized identity solution is not a profitable activity for most companies, it can save significant costs by avoiding possible data breaches.

Mazza said the value of digital identity lies in certain companies that collect the data.

“For many other businesses, it’s a cost center. You need to protect customer data. “When this is compromised, it leads to significant damage control.”

Cardano is one of a number of blockchain networks developing their own non-custodial digital identity wallets.

Decentralized identity wallet. Source: Cardano Foundation

Although the technology model is still in its early stages, some countries are already exploring decentralized ID cards. For example, Istanbul uses decentralized identity solutions to improve data privacy, using Omchain’s Proof of Identity (PoI), which works without the need for database queries during authentication.

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