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Is Digital Identity the Answer?

Is Digital Identity the Answer

Regulators are closing. To satisfy corporate compliance departments, it is one thing to delegate market functions to their stocks, and to remove collectors and primary brokerage. Satisfying regulators is another matter.

Regulators are slowly tightening their grip on the emerging European markets within the crypto asset regulatory framework and the Financial Action Task Force advancing under its guidance to comply with the somewhat ambiguous U.S. Infrastructure Act. I am. This could be the beginning of years of competition – the decentralized financial (DFI) market is now in their spotlight.

Related: DP: Who, what and how regulates a world without boundaries, code control?

Can Digital Identity Help?

For the past 10 years, every time I have been asked what the Bitcoin (BTC) killer term is, my response has been “digital identity”.

Today the world is at a crossroads. One turn always leads to increased and privacy invasion monitoring and money eventually following the information on the internet rails. Below, on the other hand, is a look at how personal data gets into the hands of individuals and databases with mega AI beats controlled by a handful of corporations and governments.

It may have been annoying for the early Bitcoin cleaners, but reality bites, and the growing debate over the Covid-19 digital passport is mixed, with clouds appearing to be the perfect storm on the horizon and could be the main story next year.

The excitement is evident when central banks everywhere realize that they can do both monetary policy and oversight, as they dispose of crypto assets for the benefit of their own “CCDCs” like nothing but roulette table chips.

Unfortunately, crypto markets have already fallen victim to their success and regulators are all starting to get started. As those “market values” have risen (up from $ 2 trillion earlier this year), itch regulators are on the rise. The Chinese have simply taken up swordsmanship and banned everything (except for the recently launched CBDC, of ​​course) Western regulators take a subtle approach, or whose scope should it come from? Under.

Related: Authorities are trying to close the gap in the wallets that were left unattended

As most of the cryptocurrency activity is still flowing through the major crypto exchanges and the OTC desk, the FATF is still in the process of forcing the virtual asset service providers (VASPs) to comply with travel regulations. Slopes are easily identifiable. But what if a self-sufficient crypto economy emerges where the majority goes beyond speculation and goes “inside” and stays “inside”?

Or if Defy is bigger than it is, but importantly, plain?

Feasibility, transparency and ‘dirty’ money

Can you imagine Satoshi’s vision of an “anonymous money system” really developing, even though for the past decade or so it has been necessary to forcibly remove the anonymous “physical money” system and record transactions of at least hundreds of dollars?

If you want to know the answer to that, look at what happened when Mark Zuckerberg had to suggest such an idea through his Deem (formerly Libra) Stycoin project, which could reach three billion users overnight. DIME (what the regulator’s dream should be) has a deeply ingrained digital identity in the protocol as planned from the beginning!

Related: Stablecoin presents new dilemmas for regulators with large-scale adoption

Sometimes these people do not see the wood for the trees.

In recent years, there has been endless debate over the fungus of bitcoin (or other crypto), and how they can be “defiled” if used in an abusive manner. While the transparency of blackchains has proven to be a useful tool, otherwise they may not have been available to law enforcement agencies, and hackers have often found it “useful” to blackmail the visible wallet documents in the exchanged wallet. That appointment is not easy.

But certainly “money” cannot be “clean” or “dirty”, “good” or “bad”? Surely it’s a dumb thing (or a database or “blocking” entry)? Surely it can only be considered good or bad (albeit subjectively) by the identity of the party dealing? This is not to say that this is a remote new debate. You can go back to 18th century British law Case All of that was debated (corrected) a long time ago.

Ignoring Zack’s real intentions for Deem, I’m not alone in my long – term view of the role that decentralized identity (DID) should play in both our crypto and non – crypto futures.

Related: Decentralized identity is a way to combat data and privacy theft

Autonomous identity and technology giants

Crypto is the old Microsoft lazy way to get bitcoin interested in any well-known technology brand for any passion on Twitter Started Exploration of the selected digital identities used for “blockchain” has received relatively little attention since the digital age of 2017.

It is not that others in the crypto industry do not have the same understanding that this is becoming a very important infrastructure component. Projects like the Civic (2017) and GlobalID (2016) are already well under development for several years and are titled Self-Sovereign Identity, whereby the individual – not a handsome central database – maintains personal control over their identity and decides who they are. Sharing them over a group is back on the agenda.

As data security becomes such an issue for regulators and a challenge to the majority of online user-based companies, you may think that these ideas will be embraced by regulators and companies themselves.

If it proves that the crypto industry can build secure and robust systems, maybe regulators will join our side. Those systems must meet regulatory requirements in order to identify parties to peer-to-peer payments — enabling more corporate participants to securely enter the crypto market so that their compliance officers can sleep through the night.

After all, what Google and Facebook need to lose the most is that decentralized digital identity exists. Except for our data jump, they are royally screwed.

Related: The data economy is a dystopian nightmare

Complaints about disagreements have already taken place Being Heard responses to the current World Wide Web Conference (W3C) review regarding Decentralized Identification (DID) v1.0.

Will the Turks willingly vote for Christmas or will they finally have to find a way to live with what is inevitable, just as the major telecom companies were armed in the 90s? Can Skype get away with giving everyone free phone calls?

My assumption is that people armed with the right tools will win in the end, but one thing is for sure: the battle lines are drawn. So grab a popcorn and sit down. The battle has begun and has a good time to run for a few years, but when it is over, the mystical dancers everywhere can finally see the global adoption of their dreams.

This article does not contain investment advice or recommendations. Every investment and trade involves risks, and readers should do their research when making a decision.

The ideas, thoughts and opinions expressed herein are those of the author and do not necessarily represent or represent the views and ideas of the Cointeligraph.

Paul Gordon In 2012, he co-founded CoinsCrum, one of the world’s first Bitcoin encounter groups, organizing more than 250 events and more than 6,500 members. Paul has been a derivative trader / broker for over 20 years.