Real World and Virtual Uses for DIDs
The Decentralized ID–or DID–is set to become Web 3.0’s primary user credential. While Web 2.0 credentials were often held in centralized databases and required third party authenticators, DIDs eliminate the need for such middlemen and centralization.
Moreover, DID’s have many possible uses beyond those for personal computing. Keep reading to learn about DIDs and their uses for both the internet and real world.
What Is a Decentralized Identifier (DID)?
A DID is a type of digital credential that is held on a blockchain, meaning its data is distributed across multiple ‘blocks’ of code. This makes DIDs almost impossible to hack.
Moreover, data on a blockchain is held in open-ledger format, which means that anyone who has access to a blockchain can check or verify any credentials held on them.
How Decentralized Identifiers Are Different From Web 2.0 Credentials
The adoption of the open-ledger verification method marks a major advancement in internet authentication technology. As blockchain assets, DIDs are authenticated by other DID-holders rather than third parties. With Web 3.0’s passpoint protocol, such authentications can grant internet access. That’s how the DIDs generated on the MetaBlox app can function as internet credentials for Web 3.0.
Open-ledger verification marks an advancement in authentication methods because in Web 2.0, users’ credentials were verified by third party services. Web 2.0 credentials also exposed personal info to internet service providers or websites since they were held on their central databases.
With blockchain credentials, internet users issue, verify, and own their own login IDs. This means that a platform or app using decentralized identifiers won’t make users surrender their login credentials to their own central database.
Virtual Uses for DIDs
That DID users can verify each other’s blockchain connections opens the door to many exciting applications for this type of credential. Below are some examples of Web 3.0 spaces that can be accessed with a DID.
Web 3.0 WiFi
By using DIDs as WiFi login credentials, WiFi routers themselves can be made to verify internet connections by doubling as data miners. These Web 3.0 routers can check the parts of blockchain code that constitute DIDs to verify internet connections.
This is just what MetaBlox’s network of over a million routers are doing, providing WiFi to public locations around the world. Anyone with a free MetaBlox DID can access a MetaBlox hotspot.
Since MetaBlox routers are also miners that validate blockchain IDs, they issue tokens which function as rewards for carrying out these validations. You can claim all the tokens from a miner yourself by purchasing one, which will secure all future mining profits from it.
Alternatively, you can purchase an upcoming MetaBlox NFT, all of which are linked to miners, so that anyone who owns an NFT will get the tokens issued by a particular miner/router.
The mining opportunities opened up by DIDs reflects the way Web 3.0 authentication methods can return some of the value of WiFi authentication services to users themselves.
Beyond MetaBlox WiFi, DIDs enable crypto mining for countless login applications. Rather than relying on third party services and their own credential databases, any platform or app can reward its own users for authenticating DIDs.
Web 3.0 dApps
A growing ecosystem of Web 3.0 apps already exist that accept DIDs as login credentials. Many of these apps, which include gaming and social media platforms, incorporate crypto mining as well. By performing certain activities like ID verifications, users can earn tokens native to those apps. For instance, Minds is a social media dApp that uses tokens to reward users for contributing to the platform.
Other dApps, known as deFi apps, provide financial services to crypto holders. Apps like uniswap help crypto holders buy, sell, and exchange their digital assets.
The metaverse is truly a Web 3.0 space since its entities are blockchain-held and therefore owned by users themselves rather than any central platform. Thus DIDs or other blockchain-assets will likely be used as credentials for the metaverse as they become the primary Web 3.0 login method.
The metaverse is an emerging virtual world encoded on blockchains. Businesses, homes, galleries, personal avatars, and more help constitute this virtual universe, and users are adding to it everyday.
For instance, you can view virtual automobile showrooms and other product displays, or visit neighborhoods where people are reproducing their own homes while mining crypto. Metaverse residents can buy and sell virtual real estate, which they can personalize with NFTs that increase the value of their property. The metaverse is highly interactive overall, opening up a new space for web surfing, gaming, shopping, social media, and crypto investing.
Real World Uses for DIDs
DIDs have many possible uses beyond the virtual. Any service or organization that requires ID for access could accept DIDs. Below are some examples of how DIDs might be used to bring Web 3.0 authentication to the real world.
Government agencies require ID in order to access various services such as healthcare. As DIDs grow in popularity, governments will likely adjust their identification systems in order to meet the authentication standards of Web 3.0.
As DIDs overtake traditional credential formats, government agencies could allow citizens to issue them as their government ID. In the future, you might be able to use government-approved DIDs to file your taxes, vote in elections, access healthcare, and more. These IDs will retain the benefits of DIDs used for virtual uses because they will not be owned by government agencies, and will reveal only the personal info needed to prove one’s eligibility for a given service.
Proof of Age
DIDs may also soon be accepted as a type of ID that proves age. For example, a DID could verify its holder’s age at a liquor store without revealing any of their other personal information. DIDs could be used to access all kinds of restricted products and services.
Proof of Ownership
Soon you might be able to prove your ownership of major assets with a DID. DIDs could be made to prove ownership of real estate, insurance policies, and vehicles, for example. This transition to blockchain-format transaction certificates could reduce fraud, as DIDs are practically impossible to counterfeit.
Proof of Membership
If you’ve ever needed to carry around tickets, wristbands, or cards to get into events, festivals or venues, you know how annoying it can be.
DIDs could transform the way people prove membership by replacing the physical objects used for these purposes. For example, festivals could issue virtual tickets in the form of DIDs.
Proof of Qualifications
Things like driver’s licenses and degrees could take DID format as Web 3.0 develops. Instead of carrying a wallet full of such credentials, such evidence of qualifications could be kept in a virtual wallet on your personal device. Since DIDs are interoperable between different Web 3.0 platforms, different companies and organizations needing the same credentials could accept the same DIDs. For instance, your insurance provider as well as government agencies could accept the same DID drivers license.
A Credential for Web 3.0
The DID is the primary credential for Web 3.0, but that doesn’t mean its use will be restricted to apps and websites on personal devices. Instead, it is set to become a major type of ID used in the real world, eliminating many physical IDs.
Keep updated with MetaBlox on social media to learn more about how DIDs are shaping the future of IDs.