The Metaverse is desperate for more transparent and protective ecosystems that allow for a smoother shift to the digital economy. Self-sovereign Identities (SSI) could be the solution to this, and BlockX is the one to build them.
10 years ago, the terms digital identity and blockchain might have sounded ironic together because of the way Bitcoin and other pioneering cryptocurrencies were used in their early years. The mainstream media had portrayed cryptocurrency as a concept limited to illegal activities on the Dark Web, and cared very little to offer information on potential future use cases of blockchain to the general public.
Today, the landscape of blockchain features is quite diverse. As brilliant minds started developing ecosystems for decentralized finance that later resulted in the birth of DAOs and Metaverse apps, the true future prospects of crypto revealed themselves.
Despite this, the world of crypto, Metaverses, and NFTs still lacks some of the most crucial features that would make it more competitive with centralized systems, such as effectiveregulation and digital ID verification solutions.
In this article, we will explore how to bring these features to the Metaverse in order to create a more welcoming environment from a social and legal standpoint.
Imagine you've been playing GameFi games, purchasing value-increasing virtual real estate, or building a network of new friends on a popular Metaverse application. If you lose access to your wallet or get your assets or identity stolen, the overall monetary loss could be enormous.
Multi-chain systems where a user's identity is often more distributed can be a great reusable identity management solution, although more of one's data can result in less privacy and security in general.
Most crypto exchanges or blockchain banking platforms require their users to go through standard Know-Your-Customer (KYC) processes in order to fully onboard them; so far this has been working relatively well in the grand scheme of things, although, considering that users might want to use many platforms, a series of passport image submissions to different servers can undoubtedly be dangerous privacy-wise.
How can we solve this?
For one, a more general security-focused and internationally accepted identity solution could be a good first step towards user identity management on-chain. There is already an ISO standard for a system used in mobile device verification of individuals from their driver's license, which serves as a good start in ID management, but there is something more valid than that.
Since blockchain is the epitome of self-reliance, a new ID verification approach called Self-sovereign Identity (SSI) resonates deeply with it. SSI identity is built on the concept of not being reliant on centralized parties like governments and enterprises, yet accessible to all while remaining a privacy-preserving solution.
The aim of SSI is to help create identities as legitimate as those of the physical world. Whilst not depending on big corporations, the SSI model can be standardized in the same way digital wallets like Metamask have been standardized.
SSI wallets contain a digital ID card similar to a physical one, which cannot be transferred, tampered with, or generally exploited, and there is no need for usernames or passwords.
The BlockX ecosystem is so robust it does not end with a multi-chain network, a crypto exchange, a staking platform, and an NFT marketplace. Digital identity on the blockchain is one of the key problems for which BlockX is building solutions.
BlockX On-chain ID is an identification system that is portable - it can be implemented and scalably used in many dApps within our ecosystem and beyond. As a result, you will be able to enjoy a wide variety of advanced blockchain applications having only completed one KYC/AML process, either using SSI or our centralized ID solution.
Once BlockX itself has strongly established its On-chain ID, we will be able to move forward with implementations across the entire world of crypto and Metaverses. The main pain points that arise while participating on Metaverse platforms are unprotected identity that can be lost along with all of one's assets, and transaction barriers because of high gas fees and low scalability.
Luckily, BlockX has wrapped itself around these problems, and using tools like SSI verification and the expansive $BCX tokenomics, is set to make the Metaverse more transparent, protected, and user-friendly.
The growth of the non-corporate Metaverse has been strong despite the current cryptocurrency market conditions. As such, more reputable and valid infrastructures are needed to sustain this growth, as well as a decrease in spam and fraud.
Self-sovereign identity, or SSI, is likely the most promising solution for identity verification on dApps and Metaverse platforms today, therefore it is worth encouraging blockchain projects to start working on them and innovating the space.
At BlockX, we are confident that our On-chain IDs will be a big step towards a more acceptable digital economy, and that other projects can start KYC-verifying their users effectively using our identity solutions.
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