Decentralized identity technology aims to do much better, making users and their devices the sole authoritative sources of personal data by using digital identity wallets. These would function as if they were payment wallets, where a user could dole out as much personal data on request as they see fit to share in even more privacy-enhanced ways. Trusted issuers would lodge the data in the form of tamper-resistant verifiable credentials (VCs), and verifiers would have ways of retrieving and checking the sources of these VCs. Distributed ledgers serve to underpin issuer networks.
The internet has given way to crowdfunding opportunities in many different forms. For some companies, the traditional and centralized approach – with its lack of transparency, high fees, and other drawbacks – remains favorable due to its “legacy appeal”. Centralized platforms are more commonly used than their decentralized counterparts, but that narrative can change over the coming years.
The advantages of decentralized crowdfunding solutions are visible for everyone to see. More transparency, global availability, and lower fees will benefit both companies and potential investors alike. To make these benefits stand out, project operators will need to enhance the overall appeal of blockchain-based crowdfunding solutions. Landing some big projects, or tackling prominent industries such as renewable energy, are potential ways to achieve that goal.
Verifiable Credentials heavily utilize Decentralized Identifiers to identify people, organizations, and things and to achieve a number of security and privacy-protecting guarantees. They are issued and cryptographically signed documents, intended to be understood by computers rather than people.
A user identifier that is:
- In digital form
- Able of communication with decentralized ledger
- A property of its owner that is stored in a wallet
- Contains the DID data string that pairs the user’s public address with a user’s public key stored on a blockchain
- Representing user ID, diploma, and many others
DIDs enable you to reference subjects in a decentralized way. DIDs can be resolved to DID documents. DID documents allow the controller to prove they are/own the subject. A blockchain-based company generates these documents for all its accounts, which have done at least one TX. These accounts are created by publishing a certificate, which is related to a DID, thus making a connection between the DID and real-world identity. DIDs can be part of Verifiable credentials (VC), which can be used for multiple cases all around the world.
In the early stages of your startup’s journey, it’s only natural to worry about funding; whether you are bootstrapping or trying to scale a venture-backed unicorn. In the blockchain space, the word “funding” often evokes images of VC firms, ICOs, and hackathon prize winnings. There’s one funding strategy for builders in the blockchain space that I think could use some more love: grants.