Connect people and platforms: The identity-first path to decentralization | Opinion

As an analyst with a background in computer science and a passion for blockchain technology, I wholeheartedly agree with Yukai Tu’s insights. The issues of interoperability, identity management, and data sovereignty are not new to me, having witnessed the centralization of identities in Web2 platforms.


In my role as a researcher, I’ve come to realize that we’re grappling with a significant challenge in the web3 sphere: interoperability among platforms remains limited. Despite the allure of decentralization and user data ownership, the systems we’re working with are not effectively communicating, leading to persistent issues such as identity management, data sovereignty, and privacy concerns within our rapidly evolving field.

An integrated system is crucial for fully realizing web3’s full potential – one that connects data gaps and offers decentralized identities with robust privacy safeguards. This strategy benefits all parties involved, creating a win-win situation. Users can enjoy cross-chain identities, data monetization opportunities, and a unified sense of personal identity. Businesses, on the other hand, can access accurate user data while maintaining privacy and adhering to regulations. Moreover, this user-centric approach to decentralization opens doors for additional features such as on-chain reputation systems, cross-chain logins, and AI data utilization.

As web3 evolves during its initial stages, it’s essential to ensure that identities are properly addressed to establish functional decentralized systems effectively. Let’s delve into methods for linking individuals and platforms successfully within this innovative digital landscape we call the internet.

A win-win for users and businesses

Examine more closely, and you’ll discern that fragmented identities and disparate control over data are causing issues with compatibility in both the new and old internet. This disjointedness results in users having pieces of information scattered throughout the digital realm. This lack of unity hinders trust-building and introduces inefficiencies across various industries, such as advertising and AI, where unified data is crucial.

These issues are all too familiar. Web2 social media giants and search conglomerates centralize identities but fail to connect them across platforms. The result? Siloed, static 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.

As web3 evolves, it’s still challenging to achieve complete compatibility across platforms and smooth user identification management. Nevertheless, innovative protocols are actively addressing these issues. For instance, LayerZero and Gitcoin Passport are among the initiatives striving for cross-chain interoperability and open-source identity authentication respectively, leading the way in this area.

Consequently, the identity and data tier is increasingly crucial in the web3 infrastructure, enabling protocols and platforms to deliver improved digital identity control, on-chain reputation development, and data autonomy.

In this setup, users and businesses mutually gain advantages. Users can now take control over their digital personas, managing, monetizing, and owning their personal data for enhanced connections online. Simultaneously, they can engage with decentralized applications (dApps) more securely and privately. A case in point is CARV ID, which leverages ERC-7231, making it feasible for web3 gamers to manage multiple on-chain wallets and off-chain accounts seamlessly in a single location.

For businesses, identity and data layers provide access to verified and (most importantly) consenting user data, which improves targeting, decision-making, and remarketing.

Better data, better results

Beyond these advantages, a unified identity system offers numerous application enhancements that better user experience and the overall ecosystem. For instance, on-blockchain reputation systems empower users to establish and uphold credibility across multiple online platforms. Meanwhile, chain-agnostic logins let games and apps grant data access regardless of their location, ensuring seamless user experiences. Furthermore, the advent of interoperable decentralized identities paves the way for secure account recovery – a significant leap forward for blockchain wallets that addresses an enduring issue in this space.

Identity and data solutions also unlock other new possibilities. Privacy-preserving advertising becomes feasible when users can opt-in and choose to monetize their information on their terms. And, as AI becomes more prevalent and data-hungry, decentralized identities enable model training that provides personalized experiences while still protecting privacy.

In essence, high-quality data leads to superior outcomes. Adopting an approach that prioritizes identity in the journey towards decentralization fosters uniformity among platforms, resulting in a more user-friendly and empowering digital environment for everyone.

Identity and the user-owned internet

In today’s world, identity and digital identity are essentially one and the same, as more aspects of life, such as work, socializing, gaming, and other activities, are moving online. Consequently, it is crucial that who we are and how we present ourselves align seamlessly across web3 environments. Additionally, our contributions in these digital spaces, particularly when they are utilized by companies for data collection and private gain, should be appropriately recognized and compensated.

According to the yearly web3 poll conducted by Consensus, around 79% of participants expressed a desire for greater autonomy over their online identities. Simultaneously, approximately 38% of respondents worldwide feel fairly rewarded for the worth and originality they contribute to the Internet.

These concepts – personal autonomy over identity and equitable remuneration – are deeply interconnected. When individuals have true control over their identity and can choose how to disclose or profit from their data, they’ll automatically receive fairer compensation for their digital contributions. This balance is crucial in shaping a user-centric internet that prioritizes people over corporations.

In essence: It’s straightforward: Future-focused systems and tools should put people at the forefront. By linking individuals with technologies emphasizing privacy, capacity, and compatibility, we significantly increase our chances of changing the existing digital landscape. Regardless if you’re a user, developer, or executive leader, the moment to participate in shaping this future is upon us. Let’s grasp this opportunity and create an internet that genuinely serves people, made by people.

Connect people and platforms: The identity-first path to decentralization | Opinion

Yukai Tu

Yukai Tu serves as the Chief Technical Officer at CARV. With a Master’s degree in computer science from UCLA, he is an authority in the fields of confidential computing and blockchain technology. In his role at CARV, Yukai is instrumental in constructing the most expansive decentralized identity and data platform for gaming, AI, and other applications, unifying more than 900 game and AI companies. Prior to this position, he has gained experience as a software engineer at Google and Coinbase, contributed to the Cosmos SDK, and led blockchain engineering efforts at LINO Network.

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2024-10-17 14:02