The article features an interview with Lars Seier Christensen, co-founder of Concordium, discussing the importance of decentralized identity as a solution where individuals have ownership and control over their data through blockchain technology. This ensures privacy and secure authentication, which is particularly crucial in the face of emerging technologies like AI and AR, as they can combat fake information and protect against identity theft. Without promoting decentralized identity in a world dominated by technologies such as Apple Vision Pro, there is a risk of increased security vulnerabilities, identity theft, and big tech companies gaining control over user data. Christensen argues that incorporating decentralized data stores is necessary to maintain personal autonomy in the digital future, as failure to do so could result in a digital dystopia where our online identities are owned by others.
Q1. Where does online identity stand at the moment, and what problems are associated with it?
Online identity is our digital footprint. It’s everything we do on the internet and the information we share on different platforms. These include our social media posts, profile pictures, email addresses and even our phone number. To get into those platforms, we have to sign up, register and accept the terms and conditions. In this process, users give information about themselves to access the platform, and then that platform uses the information to their advantage - usually to sell it to advertisers.
On the internet, most users don’t own their online identity. One of the problems concerning online identities is the question of who owns them and how the data is being used and shared with third parties. By accepting the terms and conditions of a platform, users agree that their data and personal information is stored centrally on the server of the social platform. We’ve all heard stories about our phones listening to us and minutes later seeing ads on our social media feeds.
Even though it sounds absurd, users rarely have control over how their data is being used, either in a good or bad way. The data can be used for users' benefits as recommended content or to exploit privacy by collecting personal data for political advertising - which was the core of the Cambridge Analytica scandal.
Q2. What is decentralized identity and why is it important?
Decentralized identity is a model of identity management in which individuals own, control and share their data and information on their terms, without centralized authorities.
Compared to centralized identity management, personal data is collected and stored in a database owned by a third party or a big tech company, such as Google. Decentralized identity management is built on a blockchain for users to store their data securely. The model uses a method of zero-knowledge proof where one party can prove to another party that a statement is true without revealing any additional information. This way, only needed information on proving that the statement is true is provided.
Decentralized identity brings personal data back into the hands of users. Individuals can own and control their digital identities and decide what information to share with different platforms, increasing user privacy. In addition, when information is stored in a blockchain, it cannot be changed or deleted by anyone.
When interacting with other users, authentication of users gets quicker and more secure. This way you will know that the person you are interacting with is who they say they are. In addition, the data is stored on a decentralized blockchain, which means that the information is harder to find and users can protect themselves better from identity theft.
When it comes to developing new software or apps, a decentralized identity model will remove the need for passwords and other traditional security measures such as safety questions or two-factor authentication and this way create more user-friendly interfaces.
Q3. Why is there a need for decentralized identity solutions in the age of AI, AR and other emerging technologies?
Technology is evolving quicker than ever. Even though there are regulations for consumer data protection, such as the GDPR legislation in the EU, it doesn’t keep up with technological developments. Decentralized identity solutions solve current issues, such as misuse of consumer data. Further, it adds a security layer to protect users from identity thefts and online scams.
The emergence of artificial intelligence makes it possible to create false information in a blink of an eye. Decentralized identity solutions are essential in fighting against fake information and trolls. Trolls have found loopholes in centralized identity solutions and can create multiple identities and profiles to distribute fake information and propaganda to influence societal phenomena or voting behaviour. With decentralized identity solutions, botts and trolls are easier to spot and delete from platforms, reducing the spread of fake information.
Q4. If the Apple Vision Pro were to become as widespread as the Macbook, what are your predictions for the world if we fail to encourage decentralized identity? What will the world look like?
If this scenario happens, users will never know with whom they are interacting within virtual reality. Secure and reliable authentication is hard to conduct with centralized identity management systems, leading to increased security measures such as authenticating your identity with a phone number or security questions. It means more personal information will be stored in centralized systems for data owners to use almost as they want.
In addition, the risk of identity theft is increased in virtual reality. Scammers can pretend to be someone else without a proper authentication system and exploit genuine information from users. Without an independent ID verification system, scammers will exploit the widespread applicability of AR, gaining access to a whole host of consumers as they are becoming accustomed to a new medium. Further, as users don’t own their identities online, big tech companies own the avatars in these new virtual realities. These corporations could then access and store biometric data like facial features and eye movements.
Q5. How does the Concordium blockchain guard against Web2’s data storage monopoly as these technologies advance?
Concordium has created the world’s leading open-source, permissionless, and decentralized blockchain with built-in identity management at the protocol level. It ensures that every wallet is associated with a real-world identity that has been verified through a third-party ID provider, so people can trust each other while remaining private with zero-knowledge-proof.
The technology is advantageous not only for owning your own identity, but it gives benefits to gamers and metaverse users. With the Concordium blockchain and its features, users can be assured that they know the other person they are gaming or interacting with is who they say they are.
Mysome.id is a digital certificate built on the Concordium blockchain. It engraves a guaranteed proof of authenticity onto users' social media profiles proving that the user is who they say they are. Mysome ID adds a QR code to your social media profile, which includes the certificate so everyone visiting your page can see that you own it.
The certificate helps to prevent fraud by identifying fake and fraudulent users. One of the biggest issues for Web2 has been the verification of authenticity, and it has led to identity theft and botts distributing fake information to influence societal issues and even voting behavior.
Lars Seier Christensen, a co-founder of Concordium, a layer-1 blockchain incorporating a self-sovereign ID framework, made millions during the dawn of the internet as the CEO of Saxo Bank, and later, Sier Capital. Having watched big tech fasten its grip on consumer data, Lars believes new online identity models must be considered as AR becomes entrenched in our everyday lives.
