Disclosure: The views and opinions expressed herein are solely those of the author and do not represent the views and opinions of the crypto.news editorial.
We have a people problem at web3. Unfortunately, despite the promise of decentralization and data ownership, the platforms still don't communicate very well with each other. As a result, long-standing issues such as identity management, data sovereignty and privacy continue to concern our nascent sector.
Therefore, a unified framework is key to unlocking the true potential of web3: one that overcomes the data gap and provides a decentralized identity with strong privacy protections. This approach proposes a mutual benefit for both sides of the stakeholder equation. Users benefit from cross-chain identity, data monetization, and a unified sense of self. Meanwhile, businesses gain access to complete and verified user data while maintaining privacy and regulatory compliance. Better yet, this identity-first path to decentralization enables other new capabilities, such as on-chain reputation systems, off-chain logins, and ai data utilization.
One thing is becoming increasingly clear in the early days of web3: we need to get identity right to get decentralized ecosystems right. Let's explore how we can better connect people and platforms in this brave new world of the Internet.
A mutual benefit for users and companies
Look closer and you'll notice fragmented identities and disconnected data sovereignty that hinder interoperability on both the new and old Internet, leaving users with information scattered in the digital ether. This lack of integration limits the building of trust and creates inefficiencies in industries (from advertising to artificial intelligence) where cohesive data is essential.
These questions are all too familiar. Social media giants and Web2 search conglomerates centralize identities but fail to connect them across platforms. The result? Static and isolated profiles owned by platforms and not people. Web3 promises a solution: decentralized, interoperable identities owned by individuals. However, putting this into practice is proving challenging.
While web3 improves on its predecessor, true interoperability and seamless identity management remain elusive. However, emerging protocols are addressing this head-on. Projects like LayerZero, which aims for omnichain interoperability, and Gitcoin Passport, which focuses on open source identity verification, are just two projects paving the way.
As a result, the identity and data layer is becoming a critical piece of the web3 stack, and protocols and platforms can offer better digital identity management, on-chain reputation building, and data sovereignty.
As mentioned, this new reality benefits both users and companies. Users can better connect with their online identities by owning, managing and monetizing their personal data. At the same time, they can interact more securely and privately with dApps. CARV ID, backed by nft-arena-erc-7231/” target=”_blank” rel=”nofollow”>ERC-7231exemplifies this by allowing web3 players to add and manage on-chain wallets and off-chain accounts in one place.
For businesses, identity and data layers provide access to verified and (most importantly) consenting user data, improving targeting, decision-making, and remarketing.
Better data, better results
The benefits don't end there. Unified identity supports a variety of applications that improve the experience of people and the ecosystem. Chain reputation systems, for example, allow users to build and maintain credibility across multiple web platforms, while chain-agnostic logins allow games and apps to provide access to data regardless of where they live. Additionally, truly interoperable decentralized identities facilitate secure account recovery, a crucial advancement for blockchain-based wallets that addresses a long-standing problem.
Identity and data solutions also open up other new possibilities. Privacy-preserving advertising becomes feasible when users can choose to monetize their information on their own terms. And, as ai becomes more prevalent and consumes more data, decentralized identities enable the training of models that provide personalized experiences while protecting privacy.
Ultimately, better data yields better results. This identity-first path to decentralization fosters consistency across platforms and creates a more intuitive and empowering online experience for everyone.
Identity and the Internet owned by the user
Today, there is no difference between identity and digital identity. Working, socializing, playing, and more and more facets of modern life are increasingly happening online. Therefore, who we are and how we express ourselves must be interconnected through web3. Likewise, our online contributions (especially when used by companies for data ingestion and private benefit) should be rewarded.
On its annual website3 crypto-global-survey-2023″ target=”_blank” rel=”nofollow”>surveyThe consensus found that 79% of respondents want to have more control over their identity on the Internet. At the same time, 38% of respondents globally believe they are adequately compensated for the value and creativity they add to the Internet.
These two ideas – identity control and fair compensation – are intrinsically linked. When people gain true ownership of their identity and can decide for themselves how to share or monetize their data, they will naturally receive fairer compensation for their digital contributions. This alignment is critical to creating a user-owned Internet that values individuals over corporations.
It's simple: the protocols and platforms of the future put people first. If we can connect people with platforms that prioritize privacy, scalability and interoperability, we will have a much better chance of changing the digital status quo. Whether you are a user, developer or business leader, now is the time to commit and shape this future. Let's take advantage of it and build an Internet that is truly for the people and made by people.
