Blockchain needs more non-speculative use cases to onboard the next billion mainstream users.

Decentralized identity (ID) solutions are emerging as a promising blockchain use case that could attract the next wave of mainstream adopters, according to Alexandre Maaza, Cardano’s sustainability lead. Speaking at the Web3 Corporate Innovation Day, Maaza emphasized that the blockchain industry currently lacks robust use cases that are appealing to the general public and businesses. He believes that decentralized ID solutions could serve as the "killer application" needed to scale blockchain technology to millions of new users.

Key Points on Decentralized Identity Solutions

1. Privacy-Oriented Solutions:
- Data Minimization: Decentralized IDs allow users to provide only the necessary information for verification, avoiding the exposure of sensitive personal data.
- Local Storage: Users can store their identities locally in crypto wallets and withdraw information via seed phrases, enhancing privacy and security.

2. Scalability and Adoption:
- Non-Speculative Use Cases: For blockchain technology to reach mainstream adoption, it needs applications that are not purely speculative. Decentralized IDs represent a practical and scalable solution that can be widely adopted by businesses and individuals.
- Digital Identity Management: This involves secure and efficient management of identities for people, products, data, and documents, making it a crucial application for Web3.

3. Cost-Saving Potential:
- Data Breach Prevention: Decentralized ID solutions can help companies avoid significant costs associated with data breaches by securely managing customer data.
- Value to Businesses: For businesses that rely on data harvesting, decentralized IDs could be lucrative by enhancing data privacy and security.

Industry Insights

1. Broader Industry Perspective:
- Ton Foundation’s Vision: Justin Hyun, director of investments at Ton Foundation, highlighted the importance of creating simple, user-friendly applications that can onboard users without exposing them to the complexities of blockchain technology. He mentioned that blockchain-based Telegram Mini Apps could serve as a "Trojan horse" for mass adoption.

2. Current Implementations:
- Cardano’s Initiatives: Cardano is developing a non-custodial digital identity wallet, among other blockchain networks that are exploring similar solutions.
- Global Examples: Istanbul is already using decentralized identity solutions to enhance data privacy, utilizing Omchain’s proof-of-identity (PoI), which does not require database queries during authentication.

Conclusion

Decentralized identity solutions have the potential to become the next major use case for blockchain technology, driving mainstream adoption by offering practical, non-speculative applications. These solutions provide significant benefits in terms of privacy, security, and cost savings, making them attractive to both individuals and businesses. The development and implementation of such technologies could pave the way for broader acceptance and integration of blockchain into everyday use, marking a significant step forward in the evolution of Web3.