Blockchain's ready to dominate digital ID
Blockchain-based financial services are poised to take major steps forward, as an open, universal standard for digital identity and measuring reputations or creditworthiness .
While adoption of decentralized finance (DeFi) is increasing, it is still mostly limited to speculators and crypto-enthusiasts.
The primary reason for this is that most systems today fail to integrate user identity and reputation. By introducing financial passports, next-generation identity infrastructure will offer complete user data privacy via selective disclosure credentials.
A solid foundation for identity will provide insight into credit and reputation, expanding open finance and banking to real users worldwide.
In the coming year, auditable privacy will be a top focus for DeFi, and open finance more broadly. New breakthroughs in zero-knowledge proofs (ZKPs), such as Supersonic, will enable auditable privacy, allowing users and financial services to prove that they are compliant without revealing any further information.
Finally, in the next year, we will witness the next stage of enterprise adoption of blockchain technology. With a renewed sense of enthusiasm around blockchain’s deployment at enterprise level, and with many high-profile companies leveraging the technology, there will be a pivot towards ensuring transparency, consumer protection, and regulatory compliance as adoption increases.