Decentralized identity solutions have the potential to be the next groundbreaking use case for blockchain technology, according to Alexandre Maaza, sustainability lead at Cardano. Speaking at the Web3 Corporate Innovation Day, Maaza highlighted the need for robust use cases to attract the next generation of blockchain users.
One such use case could be blockchain-based decentralized identity solutions, which have the potential to attract millions of new users. These privacy-focused solutions allow users to share only the necessary information for verification, without exposing sensitive personal data. Users of decentralized IDs can also control their information through seed phrases, as their identities are stored locally in their crypto wallets, offering enhanced privacy protection.
In order to attract mainstream adopters, blockchain technology must move beyond speculative investments and focus on practical applications. Maaza emphasized the importance of scalable and relevant use cases for businesses and individuals in the Web3 ecosystem.
Justin Hyun, director of investments at Ton Foundation, echoed the sentiment, suggesting that simple, user-friendly apps with real-world functionality are key to onboarding the next wave of users. He highlighted blockchain-based Telegram mini apps as potential tools for mass adoption, serving as a gateway to broader blockchain usage.
Hyun emphasized the need to simplify the user experience and remove barriers to entry in order to reach a broader audience. This approach is crucial in the pursuit of attracting half a billion users to blockchain technology.
While implementing decentralized identity solutions may not directly generate profits for companies, they can help mitigate the risks and costs associated with data breaches. Maaza noted the importance of digital identity for businesses that rely on data collection, highlighting Cardano’s development of a non-custodial digital identity wallet.
Despite being in its early stages, several countries are already exploring decentralized identity solutions. Istanbul, for example, is leveraging Omchain’s proof-of-identity technology to enhance data privacy without relying on traditional database queries for authentication.
As the blockchain industry continues to evolve, the adoption of decentralized identity solutions could play a crucial role in shaping the future of digital identity and privacy.