Chat about digital identity and Web3

Man is the measure of all things – Protagoras (Ancient Greece)

Identity is the measure of people, numbers are the measure of the world – Web3

Chat about identity

From ancient society to modern society, people are born with identity attributes. There are two main sources of identity: nature and society. Therefore, in the process of human evolution, identity attributes have different stages and connotations.

The first stage: the society of blood marriage. Typical social forms include primitive group society, blood family tribal society, and matrilineal clan tribal society. At this stage, human beings are still in the extreme lack of production materials and need to hunt in groups in order to barely live in the era of mammoths and saber-toothed tigers, and the concept of identity is relatively vague. and solidified.

The second stage: the economic form of society. Typical social formations are familiar and last until modern times, including slave societies, feudal societies. In these two social forms, the development of human productivity has almost solved the problem of food and clothing and produced surplus. But it is precisely this only surplus that changes the production relations and gives birth to a spiritual world in which the exploiting class is very centralized in nature, and is accompanied by theocratic suppression of people. This is especially evident in the West. Before the Renaissance, all Western creations were looking for miracles and God. The change of dynasties in the East is also the banner of divine authority. Later, the West took the lead, such as Dante’s Divine Comedy, Mona Lisa’s smile, and Van Gogh’s starry sky and sunflowers. In essence, they all explored democracy and human rights to weaken theocracy. In the eastern civilization, the Manchus entered the customs because the number of flag troops was only 134,000, and they had to rule 60 million people. The feudal closed the country and the Daxing writing prison. It is impossible to liberate your identity. It is a missed window of modern civilization. At this stage, the concept of oriental identity is still solidified, but the west has loosened, and there has been a trend of identity diversification.

The emancipation of ideas in the Renaissance (in web0) stimulated the creativity of the people, and then the scientific progress of modern times promoted the Western Age of Navigation, the Age of Colonization, and the Industrial Revolution. For hundreds of years, capitalist society has created a lot of social wealth. Capitalism has weakened the natural attributes of human identity, but the social attributes have become more and more important. At this stage, human beings are inevitably carrying out collective production. However, the productivity is rapidly updated and iterative. It is indeed accompanied by the movement from enclosure movement sheep cannibalism to machine cannibalism, man cannibalism, and man rolling in in currency wars. Humans cannot avoid it. suffer the pains of development.

The fundamental reason is that the ruling class and the leaders of world rules have not fundamentally paid attention to the fact that each group and each individual constitute an equal part of the large collective, and the objective reason is that the development of production tools and production concepts are not yet mature.

With the development of infrastructure such as blockchain, AI, cloud computing, 5G, Internet of Things, and Industrial Internet of Things at the technological level, the world competition pattern and development concept at the political level are changing. The creative ability and enthusiasm of individual creators will be greatly released, and the cost of learning, trust, and creation will be greatly reduced. This is the charm of large-scale global infrastructure. Although the short-term see is the smoke of gunpowder, but the inflection point has appeared.

An innovative trend of thought comparable to the Renaissance is coming, and the accompanying concept of identity is unbundled here. It is necessary to pay attention to the ideological development of different groups, races and individuals, and more human rights are given to human beings.

The third stage: a society in which the individual develops in an all-round way. The third extremely important point is that it not only increases people’s spiritual attributes, but also aims at developing people’s spirits. With the advancement of science and technology, the trend of innovation will completely liberate manpower, and at the same time, it will be accompanied by development tools and development concepts that are in line with the development of the times. This piece is still in the exploratory stage, which is a process of co-construction, co-creation, sharing and co-prosperity.

Throughout the three development stages, the development of human identity has experienced identity centralization and identity unbundling, and is in the initial stage of identity equality in the third stage. Through the peer-to-peer identity infrastructure tool DID, the ownership of data is controlled in its own hands. ; Master the bargaining power of data through the blockchain decentralization mechanism.

1. Cryptography: The Source of Decentralized Infrastructure

(1) Modern Cryptography

In his landmark 2001 book “Cryptography,” Steven Levy explains the evolution of cryptography over 50 years, from its earliest days in the service of politics, to the National Security Agency (NSA) ; The crypto monopoly was subsequently broken by academia. In 1967, David Kahn published “The Decipherer,” a guide to cryptography — a book the NSA had blocked from publication.

In the 1970s, academia developed the concept of public key cryptography. Shortly after the emergence of public key cryptography, Ralph Merkle envisioned the earliest public-private key agreement, and Merkel is the “Merkel” in the Bitcoin data structure. In 1977, three MIT professors invented public key digital signature technology and founded RSA Security, which was later sold to EMC for $2.1 billion. In the 1990s, public key-based infrastructure (SPKI) was developed and people realized that encrypted credentials could be used as authentication credentials. This is the origin of blockchain, SSI verifiable credentials and zero-knowledge proofs. With the opening of the book and source code of Pretty GoodPrivacy (PGP) in 1991, encryption gained a large following, cryptography began to democratize, and the cyberpunk movement began.

(2) Cyberpunk Movement

The term cyberpunk was coined by Bruce Bethke, derived from his 1983 short story of the same name. Cyberpunk is a literary movement, to be precise, a literary genre with a quasi-counter-culture in the 1980s. Cyberpunk is a group of people who defend freedom of speech, information freedom, and communication privacy in exaggerated ways. The most familiar one should be cyberpunk mail. The cyberpunk movement also uses email to deliver information in the hacker world. The content of discussions involves mathematics, cryptography, computer science, and privacy encryption. By 1997, the email had more than 2,000 subscribers, some of which became A member of the SSI community.

(3) Digital freedom: digital currency and decentralization

Cypherpunks’ exploration of digital privacy and freedom has prompted some people to enter the field of digital currency.Among them, WeiDai is the creator of b-money, Nick Szabo is the creator of Bit Gold, Hal Finney is the creator of Reusable Proof of Work (RPOW), Bit Coin creator Satoshi Nakamoto made the first Bitcoin transaction with Hal Finney.

Digital currency transactions are inseparable from cryptography, not only for digital security, but more importantly for decentralized control. The inherent link between privacy and decentralization, only cryptography can protect your data to the death. Address user privacy concerns in data protection by building proper encryption tools. What the SSI community is realizing: Through decentralized digital wallets, everyone can control their own identity, data, relationships, and their own keys, W3C proposed a solution DID, and is building a decentralized key relationship system instead of centralized password management facility.

(4) Encrypted currency and encrypted certificate

From the NSA to academia, from academic cryptography to entrepreneurs, from the cypherpunk movement to cryptocurrency creation, to verifiable cryptographic credentials for the SSI community. The purpose is to provide more digital privacy protection for digital citizens, guarantee digital sovereignty and digital bargaining power, which is also a key part of the decentralized economy.

2. The Internet and Digital Identity

In the 1960s and 1970s, the exploration of the basic theory of electromagnetism by Maxwell and others opened up a new way for human beings to connect. During the feudal period, people solved the problem of end-to-end transmission in the long-distance process by means of vehicles, horses, and post stations. The breakthrough in electromagnetism provided a new way for later information transmission. Information could be transmitted in human society by means of electromagnetic signals, which greatly promoted the development of the later Internet.

The development of the Internet has created a new digital world for mankind. The end of Web2 or the era of mobile Internet is the starting point of data assetization. The digital world takes data as the production factor, and the circulation of data is the process of realizing value creation. The most important production relationship among them is the ownership relationship of data. It is necessary to clarify the identity of data sovereignty. The most popular concept must be Sovereignty Management (SSI). The community derived from cryptography has promoted the democratization of digital identity.

Digital identity is the only mapping mark of human beings in the Internet space. It carries digital power and digital obligations at various stages of development. With the development of centralization, centralization, and decentralization of the Web, its development model can also be divided into similar: There are three stages of centralized identity, federated identity and distributed identity. Modeled on the transformation of people’s identity relationship in social development, it is divided into digital farmers and landlords Web1&2, and digital identity peer relationship web3~X.

(1) in web1

Web 1.0 is a static Internet, and its main application is network media. Each network media employs a large number of network editors to publish the content with pictures and texts as web pages. Readers visit portal websites to browse news, novels and other content, but they can only read but not write, and cannot participate in content creation. The entire Web 1.0 media is equivalent to the electronicization of traditional newspapers and magazines.

The main body of this stage is that commercial companies transfer human knowledge to the Internet through commercial power to realize knowledge sharing. Commercial companies earn huge click traffic, such as Google, Sina, etc. providing search, advertising and other services.

(2) in web2

Web2.0 is the interactive Internet, and its main applications are social networking and e-commerce. This stage enters the stage of user production. The platform only provides an infrastructure and creates very little content by itself. Most of the content is created by users.

However, the platform has expanded its rights behind the scenes, relying on its control over the technical infrastructure, subtly exploiting the poor cognition of information asymmetry, and transferring the ownership of user data to itself.Domestic giants in the Web2 industry, such as XD, XX, XD, etc., use Chinese data to go public in the United States because there is an element of selling data. In foreign countries, Facebook steals user privacy, and Twitter affects the freedom of speech of voters. The essence is that centralized identities can be modified by service companies at will.

The above two stages are all centralized identity systems. The interests of creators are divided by the platform and the media. Centralized institutions such as platforms have absolute identity control. Rely on the moral bottom line of capital.

(3) in web3

web 3.0 is the Internet of Value, which is mainly to confirm the rights of the user-created content or the residual value, and then according to the specific data agreement, the user selectively authorizes the data to a third party for compensation, thereby stimulating the creator economy. At this time, the change of data control rights has been transformed from the platform to the user, the data has been transformed from user information to user assets, and the pricing power and bargaining power are in their own hands through the blockchain protocol. Data is moving towards digital assets, content creation is moving towards a pure market economy, and value exchange is realized based on blockchain protocol contracts. The monopoly of the platform is broken. Creators are the mainstay of the times, rather than intermediary platforms spanning both supply and demand ends.

(4) In WebX

Web3 is the technical base of the creator economy, Metaverse is its application in various scenarios, and creators are all web3 netizens. At present, Web3, the controller of production factors and production tools determine the production relationship. Due to the inequality of information and the existence of poor cognition, it leads to the situation that the middleman earns the price difference or even monopolizes the market. In the real Web3, creators will dominate their own digital sovereignty, and in WebX, they will gradually regain the sovereignty of land, capital, technology, and labor, realize the freedom of production factors, eliminate exploitation in production relations, and realize reciprocity between social relations and production relations.

However, especially after the domestic de-tokenization, the blockchain infrastructure BTC, ETH, etc. cannot be decentralized, and even easier to be manipulated. The blockchain is an equity tool that changes production relations and distribution. A truly decentralized infrastructure cannot be produced in such a productive social soil. Multi-centralized decentralized services are more in line with productivity, or perhaps decentralization is just a utopia that requires collective sobriety and solid consensus. Deliberately pursuing a completely decentralized underlying infrastructure is a departure from the current social development status quo, and the cost is too high and difficult to achieve. Instead, it should ask for more digital asset control and bargaining power from other underlying facilities.

The control and bargaining power of the data mapped under the identity layer will be reflected in all parts of the next-generation Internet Metaverse: the real world, the virtual world, the fusion of the virtual and the real, and the mutual growth of the virtual and the real. Digital identity is the infrastructure to solve the chaos of identity development, and it is also a key part of solving the chaos of decentralized power at the bottom of the blockchain. A large number of new identities will inevitably be born in these four parts. Human beings urgently need a tool to describe and regulate such a huge digital world and establish a global network of identity systems.

There is a problem:

(1) National differences, there is a political game between countries, striving for the living space of the nation in the physical and digital world.

(2) Cognitive differences, ordinary people have cultural differences and ideological differences, and it is difficult to reach an agreement.

(3) Class differences, the ruling class may not necessarily implement web3 and webX without incentives.

(4) Method differences, there are 112 kinds of digital identity DID methods in line with W3C.

(5) The underlying difference, the DID method implements optional blockchain, DLTs, and P2P.

Chat about digital identity and Web3

3. The underlying scheme of digital identity

How to ensure that the underlying digital identity is credible, the design of the blockchain largely solves the problem of decentralized trusted data sets. The BTC designed by Satoshi Nakamoto proposed a solution to the double-spending problem that has long plagued the development of digital currency protocols and electronic cash systems. Among them, proof-of-work is a combination of technology and game theory that solves the Byzantine generals problem: the computer problem of how to reach consensus when communication channels are untrustworthy and insecure. Vitalik expounded on the three parts of decentralization, trustworthiness and decentralization: architecture, logic, and governance. The decentralized design must be maintained continuously during the development of the project, otherwise the decentralized power must be concentrated and the phenomenon of centralization will appear.

Implementations of the DID approach to the SSI community can choose from blockchain, DLTs, or P2P. Blockchain and DLTs have lost most of their meaning through the blockchain hype cycle. It is time to abandon labels, focus on how to achieve decentralization through various technologies, and act as a “believer” rather than a “advocate” or “” staunch supporter”. The pursuit of decentralization is a process, a state, and should not be a superstition of a certain project, technology, or founder.

Chat about digital identity and Web3

As technology evolves, some solutions require a hybrid model. First of all, because its technology is mature enough, and in addition, governments and institutions allow citizens and companies to do things within the current or foreseeable future social framework, and at the same time, they can also solve the management problems of traditional institutions. This will be a major consensus of global governments.

 4. Digital identity and currency

(1) Protocols missing from the Internet

The missing transaction and identity layers in the Internet’s Web2 protocol. Until Satoshi Nakamoto combined different cryptographic techniques such as cryptography and Merkle tree to realize electronic cash transfer. Although BTC is not a legal currency, it makes up for the transaction layer of the Internet at the protocol layer. The same principle W3C develops standards: the combination of verifiable credential VCs and distributed identification DIDs fills the identity layer of the Internet, and the combination of blockchain and distributed storage solves the problems of difficult verification and data control.

Chat about digital identity and Web3

(2) Identity and currency settlement

Before modern civilization, identity was usually determined by family, religion, and clan, and the distribution of social wealth was determined by blood and marriage. When allocated in the primitive hunting scenario, the history of allocation is calculated according to the subjective psychological IOU ledger of human beings. Currency has no place in this situation.Later, with the gradual expansion of the tribe, the social network became more and more complex, and a unified settlement unit currency was required for settlement. The currency at this stage is only a tool for settlement and storage of value, and minerals must be discovered and mined for additional issuance. However, in modern civilization, people do not know each other, so people must establish trust and a medium of exchange through intermediate equivalents such as currency and anti-counterfeiting technology. Identity transforms settlement between acquaintances into relationship settlement, and currency transforms settlement between strangers into settlement based on technical trust.

Currency has three functions: store of value, medium of exchange, and unit of account. Looking at the functions of money separately, money is actually a technology, a technology that drives social efficiency, leveling the information gap between supply and demand entities in society. Like electricity, pipelines, networks, drilling and other technologies, advances in monetary technology will inevitably greatly increase productivity and improve production relations. Decentralized cryptocurrencies based on blockchain cryptography are cheaper than traditional centralized basic currency technology under limited conditions, which is one of the reasons why each country needs to do its own CBDC.

When the identity technology of the SSI community is atomized and decentralized, the degree of overlap between identity and cryptocurrency is extremely high, so Dave Birch (Dave Birch) declared that “identity is the new currency”. In The Economy of Intentions, Doc Searls envisions a distributed P2P economy driven by attention and relationships, where both money and identity will be fused into the human relationship graph. The fusion of identity and currency is beyond the current operating boundaries of human institutions, and this key will unlock more future fringes.

(3) On-chain identity

On-chain identity is primarily used for work, professional identity, and reputation. Based on multi-chain transactions, FT, NFT, domain names, and DAO participation records, it is used to characterize on-chain identities, serving DAO management, NFT and domain name trading markets, project party recruitment training, project short-selling drainage, and establishing on-chain and off-chain data links , biological features, data aggregators, etc. Among them, Lit protocol and Ceramic data protocol are dealing with issues such as ownership and privacy on user data chains.

Chat about digital identity and Web3

(4) Identity empowerment

Real-world access to KYC digital identities can be combined with specific industries, and Defi mortgages have been the backbone of growth so far. Having a strong DID layer could allow for “on-chain” credit scoring, providing users with credit-based loans. Additionally, because users have direct control over their credit scores, they can better monitor and adjust their own lending behavior. Therefore, DID offers an opportunity to further democratize decentralized finance. In the field of digital asset NFT, NFT has a unique DID identifier, different people can have multiple NFTs, and can be used as a certificate verification, eliminating the problems of real world creation and stamping, anti-counterfeiting, identification, and difficulty in circulation. The creator of the digital identity can create under the software that can be stored, and upload the process as the certificate of the NFT asset, which is conducive to solving the copyright problem of robbing mint in the virtual world.

In addition, digital identity provides a new model of decentralization, verifiability and automation of processes, which can be applied to social networking, education, scientific research, IOT, industrial Internet, medical care, traceability, Internet of Vehicles, etc. to jointly build Web3 and the Metaverse.

Chat about digital identity and Web3

5. Digital identity issues

(1) Identity solidification

Web3 does not solve the problem of identity and class solidification, and may even further exacerbate it. The underlying blockchain of Web3 is essentially driven by financial transactions, and the two-eighth rule of finance cannot be changed unless a virtual world is continuously re-established or a supply chain system is re-established in the real world in parallel, and at the same time, it is continuously provided to the following participants. excitation.

(2) Credit evaluation

How to build a centralized reputation management system (RMS) to handle on-chain and off-chain reputation in some quantitative form, build and store, and apply to trust relationships between parties. Quantifying reputation helps facilitate interactions between distrusting parties. The basic idea is to let all parties evaluate each other. When cooperating with a party, you can consider whether to cooperate according to the credit rating.

(3) Public Issues

The identity system project is still in its early stages, but the development of governance rules has already begun and will have a clear stand. The digital age has the potential to create an even greater digital identity divide.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/chat-about-digital-identity-and-web3/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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