DID: How to return to use value from price speculation

Author: defioasis

Editor: Colin Wu

DID, full name Decentralized Identity, i.e. decentralized identity, is widely believed that DID has three characteristics: security, controllability and convenience. DID allows the mastery of identity autonomy back into the hands of individuals, the past network identity registration and verification issued by centralized institutions, such as Twitter, microblogging registration or Blue V certification to submit their own information to the APP official, if the company organization to collect data for evil or freeze the account, the credential holder's personal can do nothing. With the awakening of people's awareness of personal data protection, the emergence of DID is a matter of course. DID enables users to regain full ownership and control of their own identity without relying on third parties, such as the right of individuals to decide on the use of data, the option to disclose their own data privacy and personal data not being stored in centralized servers.

While there is currently non-benefit DID projects such as Bright ID and Proof of Humanity, with the emergence of emerging DID systems such as ENS, BIT, SPACE ID and other identity management domain name projects, many domain name projects are calling themselves DID concepts for hype. When a new domain name project emerges, grabbing a four-digit or lower domain name registration and eventually selling it is the primary goal of the user, and the value or vision of the project's use is the hype narrative. This kind of pricing based on the scarcity of numbers or characters is the same as the hype of .com and .cn domain names at the beginning of the 21st century, under the banner of Web X revolution, with strong hype attribute, which eventually ended up in Bubble crash.

DID should return to use value - the landing of application scenarios.

DID can enhance the sense of community identity and become a bond of social relations. The NFT rush of brands like Reddit and LV reflects the social attributes of on-chain identity behavior visualization and blue-chip image NFT playing the same role i.e. social display and identity. For organizations with strong user loyalty, the NFT collectors issued by the organization are not collected for simple sale, the hold of each user is the main theme, writing on mirror, buying NFT on opensea, hoarding land on Sandbox and other such behaviors, so that the behavioral visual content displayed by the DID has these symbolic meanings and establish a three-dimensional portrait. It gives DIDs the meaning of personal expression and social currency.

In the real world, the connection of identities between different products has strong barriers. Like WeChat and Ali's products identity credentials cannot be interoperable, users using products in different ecologies need to constantly register and identity verification to flow in each ecology, multi-platform interoperability has become a pain point for Web2 products digital user identity, DID solves this problem. DID is not just a single protocol that works, but can convert between multiple protocols of different DeFi, GameFi, etc. on the same chain. The problem of DID not interoperating between chain and chain, chain and layer can also be solved by identity aggregators like Unipass and Cyberconnect to achieve unified account login.

In addition, DID simplify the process by eliminating the need for users to re-verify against centralized institutions, which is a huge advancement in user experience convenience. Online interoperability allows a more comprehensive record of personal behavior, and also makes the DID personal image more three-dimensional. On-chain behaviors such as NFT buying and selling to show their personality or DeFi interactions to reflect their exploration of new fields can enrich the DID uses such as as social business cards and Web3 resumes, which are helpful for both DID personal attraction and company screening of talent.

As Vitalik Buterin proposed in "Where to use a blockchain in non-financial applications? ", for DApps on the chain, the user data is real and comprehensive. The reputation score on DID is established and the credit rating of users is carried out according to the reputation, which can screen high-quality users and give users more rights. For example, users with good repayment ability can get more loans in the DeFi program, assign weight to the governance of the program through the identity reputation, or determine whether they are real users for airdrop rewards, etc. As an important bridge between Web2 and Web3, DID, personal credentials such as driver license, ID card, degree certificate or even social media accounts, can use SBT (Soulbound Token) or VC (Verifiable Credentials) to bind with off-chain information. And off-chain behaviors can be recorded in the form of POAP.

For DID individuals, the way the Credit Score adjusts the reputation level based on on-chain resumes or behaviors will affect the offline reputation, or on the contrary, it can improve the DID reliability and strengthen the chain. Responsibility of users and regulate offline behavior of users.

On the whole, the number of DID-related projects is also relatively large, and there is no consensus on the definition of DID, as long as there is a related business linked to the project can be hung on the title of DID, rather like hanging a sheep's head to sell dog meat, but as the infrastructure of Web3, is still indispensable, given that DID is still in the early stages of development, so has an unknowable huge potential.

Reference article:

https://vitalik.eth.limo/general/2022/06/12/nonfin.html

https://vitalik.eth.limo/general/2022/01/26/soulbound.html

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