Cardano sustainability lead believes Decentralized ID is the next gamechanging use case in Web3

Decentralized identity solutions are positioned to be the next groundbreaking use case for blockchain technology, attracting a new wave of mainstream users, according to Cardano’s sustainability lead.
In a discussion panel at the Web3 Corporate Innovation Day, Alexandre Maaza of Cardano expressed that the blockchain industry still lacks compelling use cases to draw in the next generation of adopters.
The emergence of decentralized identity solutions based on blockchain technology could potentially offer the next major use case to entice millions of new users. Maaza emphasized that the Cardano Foundation sees a gap in Web3 for a “killer, scalable use case” that is applicable to both businesses and individuals.
Decentralized IDs in the Web3 space prioritize privacy by allowing users to share only necessary information for verification purposes, rather than sensitive personal data. Users of decentralized IDs have the ability to control their information using seed phrases, as their identities are stored locally in their crypto wallets, presenting a significant advancement in privacy protection solutions.
In order to attract the next billion users to blockchain technology, there is a need for a practical, non-speculative use case. Maaza highlighted that much of the excitement surrounding cryptocurrency comes from price speculation by retail investors seeking financial gains. However, in order to reach mainstream adoption, blockchain technology must offer real-world applications that appeal to a wider audience.
Justin Hyun, director of investments at Ton Foundation, echoed the sentiment that attracting the next 500 million users will require user-friendly applications with genuine utility, such as blockchain-powered Telegram mini apps that could serve as a gateway to mass adoption of blockchain technology.
Hyun emphasized the importance of simplifying the user experience to onboard a significant number of users successfully. Abstracting complexity and making blockchain technology more accessible will be crucial in reaching the goal of engaging half a billion users.
While the development of decentralized identity solutions may not directly generate profits for companies, it can lead to significant cost savings by reducing the risk of data breaches. Maaza noted the value of digital identity for businesses that rely on data collection and storage.
Cardano is actively working on its own non-custodial digital identity wallet, joining other blockchain networks in the pursuit of secure and privacy-centric identity solutions.
Although decentralized identity technology is still in its early stages, some regions are already exploring its implementation. Istanbul, for example, is leveraging decentralized identity solutions to enhance data privacy by utilizing Omchain’s proof-of-identity (PoI) system, which streamlines authentication processes without requiring database queries.
As the blockchain industry continues to evolve, decentralized identity solutions are poised to revolutionize digital identity management and enhance privacy protection for users and businesses alike.