Application scenarios and cases of the current Web3.0 identity system

Some time ago, the ENS airdrop attracted people’s attention to centralized domain names, and it is true that decentralized domain names can be used as a Web3 identity. However, in the real world, Web2 or Web3, in addition to the identifier, the identity system also includes identity verification and management. For example, in the real world , a person’s ID card, driver’s license, and student ID, such as credential, need to be processed and issued by a centralized agency (attester). When he wants to enter the bar for a drink, the verifier at the door will check his ID and compare whether it matches the face. People usually keep physical credentials in their wallets for safekeeping. During this period, people still have autonomy in identity management. 

When entering the Web2 world , the rules of identity verification and management are very different. Since the World Wide Web was born 30 years ago, there was no digital identity design in its underlying protocol, and anonymity became the norm. The digital identities that everyone has are mainly created through the traditional Internet account model. The created ID and password are managed by the service provider, and all users’ online behaviors are also completely monitored by them. The problem that arises is: Internet service providers are familiar with users’ online behaviors and carry out precision marketing and advertising. They even sell users’ personal information for profit.

Due to the increasing severity of identity and privacy leaks, all walks of life have also explored three generations of digital identities such as DID (decentralized identifier) ​​and SSI (self-sovereign identity). The result of the exploration is that blockchain and zero-knowledge proof technology are the best solutions. Since entering the era of blockchain, the wallet address has become the user’s new identity, and the user’s custody of the key means that the user has full control of this identity. But this identity does not seem to be perfect. Firstly, it is not readable, and secondly, it cannot be associated with Web2 identity and physical world identity. At present, most of the blockchain projects are to solve the above problems.

With the development of Defi, NFT and DAO, simply building an identity system on the chain will effectively regulate the chaotic industry. Web3 is built on Web2, and how to associate Web2’s existing social identities with web3 identities is one of the main issues. Secondly, the identity system covering each track of the blockchain has also derived different use cases.

  • One-click login

The login method of Web3 will enable users to keep accounts and keys by themselves, which will subvert the traditional way of keeping accounts and passwords in centralized servers on the Internet. Spruce ID and recent ENS and Ethernet Square Foundation launched the Sign-in-with- Ethereum , the user can hold the domain name and private key will be able to sign in, like Google and Twitter and other Internet applications. Since ENS has the opportunity to be adopted on a large scale, it is possible to innovate the web2.0 identity system.

Recently, Ontology has also launched the decentralized identity universal login component ONT Login. Users can use address or DID for one-click login while quickly authorizing related information, which simplifies the process of login authentication and authorization.

  • Verification of NFT and artists

At present, many NFT platforms associate the works of art with the Web2 identity of the creator. However, with the exception of unreadable blockchain addresses, the user’s corresponding Web2 identity information on social media, websites and other platforms cannot be displayed effectively for a long time. At this time, NFT artists need to register DID to verify their Web2 identity.

At present, SertoID has already had a landing case in this regard. The DID created by the NFT artist (one DID can correspond to several social accounts) can be displayed on the NFT works, and will not disappear with the disappearance of the platform.

In addition to the DID related to virtual identities such as social identities, NFT artists also need to perform real-name authentication. Ontology has already implemented cases in this regard. Recently, Ontology is cooperating with ROCKI, a decentralized music platform, to verify the identity of the artist. Artists on ROCKI need to complete the initial steps of KYC/AML to verify their identity; after the verification is successful, they will receive a verifiable digital certificate that can be saved and managed by themselves. By applying the ONT ID registration management SDK, ROCKI can prevent perpetrators from impersonating artists and prevent users from buying pirated music NFTs.

  • DAO organization’s selection of members

The DAO organization is recognized as a group of people with a good reputation on the chain and a spirit of contribution. DID can select members based on their on-chain behavior, while matching the contribution value and corresponding incentives. The disciplined DAO organization also requires one person, one vote to vote on proposals.

BrightID can prove that the user has one and only one account, and any fake account or robot operation will be identified. Currently, BrightID has been applied to many dapps, such as Rabblehole, 1Hive and Gitcoin. These dapps can better prevent users from swiping tickets through false identities by integrating BrightID, and at the same time ensure a more fair and just participation environment for the blockchain.

  • Defi’s subdivision track

DID will improve the user’s reputation system and open up corresponding use cases for Defi. This reputation system is similar to Sesame Credit. After verifying the user’s chain reputation, it will affect the mortgage rate and interest rate of the user’s loan.

Ontology’s Oscore has begun to build a reputation system on the chain. Oscore will calculate your on-chain credit score based on your on-chain behavior and asset statistics. And this score will also affect the interest rate of your participation in Defi projects and the mortgage rate when you mortgage loans.

Through Mina’s zero-knowledge proof technology, Teller Finance can verify whether a user’s credit score is greater than a certain threshold to determine whether to lend to the user. The user logs in to the website that provides credit score query, generates a zero-knowledge certificate locally, proves that his credit score is greater than a certain threshold, and puts this certificate on the chain. In this process, users will not reveal all private information such as their credit scores and social security numbers.

MetaFinance is also laying out the ecology of the identity system. MetaFinance will use the data records on the protogenesis link to define the profile of the identity, and use the profile on the user chain (borrowing and repayment records, transfer records, etc.) to open up more detailed application scenarios.

  • Put verifiable credentials on the chain

At present, as the underlying infrastructure, such as Boca ecological projects Kilt, body, SpruceID so in a verifiable credentials to build your own alternative entity certificate. For example, Kilt introduces many real-world roles such as claimer, attester/trust entity, and verifier, so that it does not need to be verified by a centralized organization.

For example, suppose you want to register an application that needs to verify your place of residence. Under the current system, you need to prove your right of abode by surrendering your passport or other official documents. In this way, the service provider can not only access your place of residence, but also any other information contained in these files. This information is kept on the server of the certifier.

On a system based on the Kilt protocol, users will be able to prove their place of residence without providing any information about themselves. The declarant will not share the entire passport, but only the so-called credentials, which can represent any verifiable information or attributes about the declarant. The voucher will be saved on the device of the claimant, and the claimant can only show the necessary information (such as the place of residence but not the address) when showing the voucher to the verifier.

Recently, Kilt is cooperating with Centrifuge, a real-life asset-on-chain project. Centrifuge will provide official KYC for users to authenticate in the early stage of development. With the development of the project, Centrifuge will introduce the SocialKYC solution, users can ensure that their privacy is not leaked while KYC, and invest in the projects in the Tinlake pool. At the same time, the Kilt solution can authenticate the identity of financing targets in Tinlake.

The above are just use cases when DID is applied to the blockchain scenario. When DID is combined with trusted hardware and physical world oracles, it can also open up more offline application scenarios. DID is not necessarily a person’s identity, but can also be a machine or vehicle’s identity to record their usage. DID is committed to the application of the Internet of Things. The imagination space is huge. Industry leaders Ontology and IoTex have landing cases in this regard.

Back to the beginning, decentralized domain names such as ENS make our wallet addresses readable, which is a big step for the web3 identity system. How to expand the identity on the chain into a profile, how to derive more subdivided use cases based on the identity, and how to associate web3 identity with web2 identity and physical world information, these are the directions that the industry is exploring and working hard. All in all, as people’s mindsets are changing day by day, people have changed from claiming that “holding the private key means holding the property” to “holding the private key means holding the identity.” Privacy protection will become the consensus of Web3, and this consensus Not only will it promote the integration of on-chain and off-chain identity systems, it will also lead the explosion of Defi, DAO and NFT projects in the next phase.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/application-scenarios-and-cases-of-the-current-web3-0-identity-system/
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