The blockchain-based digital identity market is becoming more crowded, with a new entrant in MicroStrategy and the gradual expansion of Worldcoin’s ecosystem.
A research paper published in April’s issue of the International Journal of Law and Policy highlights the drawbacks of a centralized identity management system, such as the risk of data breaches, lack of user control, and privacy concerns, highlight the need for a more secure and user-focused approach.
A decentralized identity system powered by blockchain technology offers a solution to these issues. This system gives individuals more control over their personal information, enhancing privacy and reducing the risk of identity theft.
The Wave1 Grants Program by the Worldcoin Foundation has strategically expanded with the introduction of the World Chain category. According to the company, this category aims to develop a user-centric and accessible Layer 2 blockchain.
Projects under this category will concentrate on enhancing Worldcoin’s digital identity platform, World ID. The decentralized governance model that utilizes World ID will promote transparency, as stated by the company.
Worldcoin launched Wave1 of its grant program, the program’s second iteration, just weeks ago.
MicroStrategy, the biggest corporate holder of Bitcoin, has launched MicroStrategy Orange, an enterprise platform that enables the creation of decentralized identity applications using the Bitcoin blockchain.
The platform has three key components, the primary one being a service cloud that provides all the infrastructure required for issuing decentralized identifiers to both individuals and organizations.
The decentralized identifiers (DIDs) issued through MicroStrategy Orange can be applied in a range of use cases, including access control, verification processes, and audit and compliance. The company has stated that the platform will streamline the deployment of prepackaged applications designed to address specific digital identity challenges.
The use of Bitcoin’s Ordinals inscriptions for decentralized identifiers in the Orange platform has sparked a debate within the blockchain and cryptocurrency community. Critics contend that utilizing Bitcoin’s blockchain for non-financial data storage, such as DIDs, could result in network congestion, higher transaction fees, and a deviation from the core principles of Bitcoin.
However, MicroStrategy Orange distinguishes itself by utilizing the witness section of the Bitcoin blockchain, which is part of the Segregated Witness (SegWit) technology. Moreover, the Orange Protocol approach to DIDs does not rely on biometrics for identity verification.
This decision to forego biometrics for identity verification has several benefits, according to MicroStrategy, such as preserving privacy, reducing complexity and costs, and promoting inclusivity and accessibility. The potential applications of the Orange Protocol span various sectors, including finance, healthcare, and education.
Worldcoin takes a different approach than MicroStrategy by utilizing biometric data, such as iris scans, to establish and authenticate digital identities. This method ensures that each digital identity corresponds to an actual human being (proof of personhood).
Article Topics
blockchain | decentralized identifiers (DIDs) | digital ID | identity verification | MicroStrategy | MicroStrategy Orange | World Chain | Worldcoin
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