Decentralized identity solutions have the potential to revolutionize blockchain technology and attract a new wave of mainstream users, according to Cardano’s sustainability lead, Alexandre Maaza.
During a panel discussion at the Web3 Corporate Innovation Day, Maaza highlighted the lack of robust use cases in blockchain technology that appeal to the next generation of adopters. However, he believes that the emergence of decentralized identity solutions based on blockchain could be the game-changing use case that attracts millions of new users.
Decentralized IDs in Web3 are privacy-focused solutions that allow users to provide only essential verification information without revealing sensitive personal data. These IDs can be managed securely in users’ crypto wallets and retrieved using seed phrases, making them vital tools for preserving privacy.
Maaza emphasized the need for blockchain technology to move beyond speculative investments and offer practical use cases to appeal to mainstream users. He stressed the importance of developing simple applications with real usability, such as blockchain-based Telegram Mini Apps, which could serve as a gateway to mass adoption.
Justin Hyun, director of investments at Ton Foundation, echoed Maaza’s sentiments, emphasizing the significance of simplifying user experiences to onboard a broader user base. He highlighted the importance of abstracting complexity to make blockchain technology accessible to half a billion users.
While developing decentralized identity solutions may not directly generate profits for companies, Maaza pointed out that it could significantly reduce costs associated with data breaches. He highlighted the value of digital identity for businesses that rely on harvesting user data and mentioned Cardano’s efforts to develop a non-custodial digital identity wallet.
Despite being in its early stages, some countries, like Istanbul, are already exploring decentralized identity solutions to enhance data privacy. By leveraging technologies like Omchain’s proof-of-identity (PoI), which eliminates the need for database queries during authentication, these initiatives aim to enhance privacy and security in the digital realm.