Note:this is a text document we collected from the live-streaming show which made by Chenhao on 27th Sep,2017. We divide the content to four parts as it’s a long article.

Introduction: In the development of the internet, identity has been playing an indispensable role and has become a critical step in business strategies. As a result, the large amounts of behavioral data linked to our identities is expected to become a competitive advantage for internet companies. However, many flaws with digital identities in areas such as privacy, data ownership and credit data issues remain unresolved. The question now is: can we can adopt blockchain technology to solve those issues?

Today I am going to talk about the following topics with respect to block-based digital identity:

1. What is identity?

2. What kind of identities can blockchain build?

3. Which sectors can digital identity be applied to?

4. What are the unresolved issues?

Chen Hao: Hello, everyone! I am Chen Hao, CTO of Metaverse. I’m glad that you guys have come to watch my live-streaming show. Metaverse is a fully open source project which is dedicated to applying public blockchain technology and its advantages in daily life. Today I’m going to share some opinions about identity, that is, how an autonomous identity system (which we call a digital identity system) can be built on the blockchain, and how this system can be employed to build relevant applications. Firstly, what is identity? Identity, as the name implies, requires certification. China has a kind of certificate called the ID card. People in China with an ID card can move around freely and enjoy the rights of citizens enshrined in the law. In China, however, identity as it is represented by the ID card has three drawbacks:

~The first drawback is the risk of losing the card. An ID is a kind identification based on physical documents, which are subject to the risk of being stolen and lost. Moreover, it’s difficult to re-make or update one’s ID card due to the huge population base in China. If you have lost your ID card, you cannot take the high-speed intercity trains or find a job.

~Secondly, it limits authorization methods. I believe many people have had similar experiences. For example, you must make a note “only for XXX use” and mark the validity period on a copy of your ID card. It cannot be verified on network on a large scale. Even though the internet is developing very quickly today, many financial products still require users to upload photos of themselves holding an ID card or undergo a manual review. This is a physical defect of the Internet. Some advanced financial products adopt artificial intelligence or need access to public security networks, but cost large sums of money. In terms of product design, their functions are relatively primitive and retain a lot of undeveloped concepts.

~ We have come to possess new identities as the world develops, such as an internet identity. In the internet industry, there are a lot of apps with strong identity verification functions such as WeChat and Alipay. For instance, if I forgot my WeChat account, I may invite my friends to help retrieve my account. This reflects some of the core concepts of identity. I call it “verification”. How is the identity of a person verified? By asking the people around you, which implies that you may use historical records to implement identity verification.

Now, we can give identity a more precise definition: identity is a collection of a series of events which have taken place, is taking place or will take place, linked to individuals or organizations; then we give it a ID which can be verified and authorized.

Suppose you use your ID card to register at school or open a bank account. These events will become part of the collection stored in your school and bank database, and the identity information stored in the databases of different institutions can be put on the blockchain. There are still some unsolved issues in the field of internet identity today: the first issue is quite common, that is, privacy. I believe many people have had similar experiences. If you gave your phone number to intermediaries, such as to a 4S store (note: automobile sales service shop) or real estate agency, your phone would be ringing off the hook the next day. Can anyone bear to have his or her privacy divulged?

Secondly, the way of authorization is not diversified. In our daily life, we have to complete authorization processes when installing APPs. In fact, there exists the potential danger of information disclosure during the process. We can say that it failed to realize the functions of effectiveness and diversification.

Thirdly, data ownership is uncertain. This issue is a little bit subtle. For instance, the information we upload to APPs are actually managed by operators. Operators might use your information for data analysis. When your personal information is used by operators for commercial purposes, they must ask for your authorization. So, can we employ blockchain technology to solve these identity issues? My answer is absolutely yes, but we need to undergo a lengthy process to fix them.