Cardano’s sustainability lead believes that decentralized identity solutions could be the next big blockchain use case to attract mainstream adopters. Speaking at the Web3 Corporate Innovation Day, Alexandre Maaza highlighted the need for robust use cases in blockchain technology to appeal to the next generation of users.
Decentralized identity solutions, known as Web3 decentralized IDs, prioritize privacy by allowing users to share only necessary information for verification without revealing sensitive personal data. Users can also control their information using seed phrases stored in their crypto wallets, offering enhanced privacy protection.
Maaza emphasized the importance of a non-speculative use case for blockchain to entice mainstream adoption, noting that the hype around cryptocurrency often stems from price speculation. To onboard the next 500 million users, simple and user-friendly applications with real usability, such as blockchain-based Telegram Mini Apps, may serve as a gateway to mass blockchain adoption.
Justin Hyun, Ton Foundation’s director of investments, echoed the sentiment, stressing the need to simplify blockchain technology for users to attract a broader audience. Abstracting complexity and offering practical applications will be key in reaching half a billion users in the future.
In addition to attracting users, decentralized identity solutions could also benefit businesses by reducing the risk of data breaches and associated costs. While developing these solutions may not directly generate profits, the value of digital identity protection for companies that collect data is significant.
Cardano is actively working on its own non-custodial digital identity wallet, alongside other blockchain networks exploring decentralized ID solutions. Istanbul, for example, is already implementing decentralized identity technology to enhance data privacy using Omchain’s proof-of-identity system, which operates without database queries during authentication.
Despite blockchain technology still being in its early stages, the potential for decentralized identity solutions to revolutionize data security and privacy is promising. By prioritizing user control and privacy, these solutions have the potential to reshape the way businesses and individuals interact with digital identities in the future.