Disco and Off-Chain ID Possibilities

ETHDenver hosted an interesting presentation on the possibilities of decentralized identity by @provenauthority, or Evin, the founder of Disco.

Disco is a really interesting project that highlights the potential for innovative decentralized solutions without a typical blockchain design. Disco promises users a “personal data backpack” to allow them to manage their digital identities across platforms and uses, all while maintaining control and without the need for a trusted third party.

Evin began her presentation with a discussion of the limitations of NFTs as identity markers. The limitations of NFTs in this regard (no signing keys, a focus on wallet value only, and a lack of privacy) highlight the need for a better alternative. This is where off-chain decentralized identifiers come in. Evin explains that decentralized identifiers (DIDs) function as off-chain packets of data (a “personal data backpack”) that allow a user to manage their digital identity and sign in relation to private data relevant to them. DIDs are cryptographically provable and can be used for a variety of types of private data.

Evin argues that the tech also offers the potential for users to manage their digital identities in a way that’s much more promising of an intuitive and seamless web3 experience. DIDs offer other advantages over other potential alternatives as well, like being free to create, a major advantage over NFTs. They can also interact across protocols without the need for a special bridge or other interoperability software.

Clearly, there is strong potential for this project, given the importance of the problem as well as its capacity to help increase adoption and user safety. User data being inappropriately released into the wild - either via deliberate hack or operator incompetence is a major and ongoing concern. Web3 could deliver on some of its utopian visions if facilitated by such empowering technology. In the coming months and years, it will be interesting to see whether DIDs live up to their potential described here.

You can check out Evin’s full talk below courtesy of the ETHDenver YouTube channel: