Technologists are eagerly anticipating the impending global revolution powered by Web 3.0 and the metaverse. By 2026, according to Gartner Research, people will spend at least an hour each day in the metaverse. HashCash Chief Raj Chowdhury discussed how the use of decentralized IDs would increase as a result of growing privacy concerns around the world, with blockchain emerging as a critical platform for their development.
DI, commonly referred to as SSI (self-sovereign identity), is an open-standard solution that employs blockchain technology to preserve user privacy and secure online transactions. In the virtual metaverse, the framework made up of verifiable credentials (VC) and decentralized IDs (DID) is very effective in preventing theft, fraud, social engineering, and data breaches. The true potential, however, rests in practical uses where documentation is required, such as in the fields of education, law, medicine, employment, and passports.
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The HashCash CEO, a noted blockchain pioneer, stated, “Storing data on a decentralized blockchain ledger will secure it with cryptographic encryption, empowering the owner in controlling and choosing the way other parties have access to that data.”
The Importance of Decentralized Identity
An important step toward resolving privacy and security concerns is the ability to authenticate a person’s identity without disclosing personal information. Without directly displaying the actual income, the name of the employer, or any other sensitive information, a borrower asking for a loan might utilize the DI to demonstrate that his or her salary is below the bank’s mandated threshold. The healthcare industry, where the exposure of private medical information might have disastrous effects, has a lot of promise for blockchain use.
“The milestone indicates that we are ready for the future with real solutions for actual projects by improving state-backed identity solutions. Much sensitive information is shared during the KYC process, which will change in the upcoming days,” remarked Chowdhurym who had previously spoken on the importance of education to prevent crypto scams and the role of blockchain analytics in crypto investigations.
Pilot tests for DI/SSI are being carried out all around the world. The US government, which is exploring adopting blockchain DI for the military, has taken notice of the potential for replacing multiple redundant labor-intensive protocols and boosting privacy by establishing one’s identity with a smartphone. Applications that are spin-offs will soon start to appear. However, using personal need-to-know information across several platforms will be the main application.