The Decentralized Identity Foundation is an exciting aspect of Uport and and other blockchain organization efforts. I am very happy with the investment being made in pushing best practices together. I just submitted the information for the Digital Reserve so we can participate. The Digital Reserve team is now reviewing the working groups for something that fits them.
There are currently 4 working groups:
- Identifiers, Names and Discovery
- Storage and Compute
- Attestations & Reputations
- Use Cases & Requirements
We at the Digital Reserve, P.B.C. believe that resolving some of the fundamental issues around a scalable and trustworthy identity system will better position decentralized applications and protocols to provide long term services and products.
On-chain identity is vital to the Digital Reserve’s implementation. The Digital Reserve Network hopes to demonstrate the ability to maximize onchain productivity. What this means is that the Digital Reserve will focus on increasing the network’s total economic productivity over the long term versus a strict focus on short-term prices and the initial adoption volatility. This will be accomplished through on-chain micro-lending and a responsive monetary policy. However, to provide micro-lending in a sustainable and scalable way, pseudo-anonymity based on authenticated and verified identification is necessary. This need for this is demonstrated in a prior analysis on pseudo-anonymous lending without collateral, which also mitigates discriminatory actions that limit financial accessibility.
Thus, our current approach to the on-chain identity is being informed by the thought leaderships of the organizations from DIF.
We will use 3rd party oracles to authenticate and verify on-chain identities that can be used to create pseudo-anonymous wallets. We are currently testing a few ways of implementing this. Our solutions currently include the systematic inclusion of trusted 3rd party institutions and organizations or Peer Approved Source Signatures (PASS).
Most recently the work of Sunny Aggarwal @irisli and Sahaj Garg on creating Flexible Trust Web a sybil resistant reputation system really supported the direction of our work with establishing onchain reputation scores as viable strategies for the relational aspect of identities and credit worthiness. The mitigation of fake identities and the creation of a trustworthy foundation for enacting on-chain activities are fundamental aspirations for robust services.