On-chain identity landscape

3. On-Chain Reputation & Identity

To make decentralized identity useful and widespread, it is important to introduce on-ramps for people to record their experiences and affinities on the blockchain, such as their educational accomplishments, professional achievements, or fanships. Some companies are already tackling this challenge. Violet aims to authenticate off-chain, personally ... See more

Challenges of fully on-chain identity:1. scalability: need block space for saving identity data2. Interoperability: hard for cross-chain verifications as SBT is not transferrable3. privacy: data on-chain is not private by default

Likewise, on-chain data could be used to gauge engagement or interest in specific creators or brands. A music artist, for example, could easily identify their top fans based on platform-agnostic, on-chain interactions and reward them with exclusive access or other perks. In the financial realm, decentralized identity could enable an internet-native... See more

...blockchain-based accounts are particularly apt at persistent pseudonymity through providing a public, pseudonymous, and cross-platform address that displays its actions over time, what Shreyas Hariharan calls on-chain reputation. What we need, then, is a technical stack that supports not an identity, but a collection of identities to navigate th... See more

This highlights the need for on-chain reputation systems. On-chain reputation systems will capture our actions that occur on blockchains: our contributions to DAOs, our governance voting history, our token holdings, and more. Ultimately, reputation systems will use these on-chain actions to make predictions about how we will act in the future to ma... See more

But in order to mainstream decentralized identity, we must first establish systems that map people’s relevant off-chain experiences and affiliations on-chain. Then we must build mechanisms to standardize, process, and prioritize the influx of data that will be added on-chain. On the way, we’ll need to solve endemic challenges to decentralized ident... See more