The introduction of the central bank's digital currency has allowed people to once again examine the impact of blockchain technology on people's lives. Perhaps, the process of digitization will be faster than we expected. The drawbacks of the traditional account management system are already obvious, which is not enough to meet the current development needs of digital currency. As a first step for people to obtain decentralized application services, will it be an inevitable trend and choice for the development of the digital world?
As a member of the DIF (Decentralized Identity Foundation), DREP is committed to improving the interoperability and standards of the identity system based on the blockchain. Through the DREP DID solution, it connects multi-party platforms and blockchain accounts to support users Enter the blockchain network without any influence.
1. The legal digital currency is close at hand
On June 18 this year, Facebook announced plans to launch a new digital currency, Libra, with 27 multinational companies such as Visa, Mastercard and Uber. Once the news was announced, it was received by the global Regulatory obstacles.
On October 27, Huang Qifan, deputy director of the China International Economic Exchange Center, said at the Bund Financial Summit: The People ’s Bank of China is likely to be the world ’s first central bank to launch digital currencies. Subsequently, the relevant rules of the central bank's digital currency DCEP were also announced.
On October 30, the Association of German Banks (Association of German Banks) published a paper calling for the euro zone to introduce a "digital euro." The association is composed of more than 200 German private commercial banks and 11 member associations.
In fact, the world's major central banks are paying attention to digital currencies. Central banks in countries such as Canada, the Netherlands, Australia, and Russia have already announced the launch of digital currency research.
A survey report jointly released by the IBM Blockchain Financial Services Company and the International Monetary and Financial Institutions (OMFIF) shows that policy makers in many central banks around the world are seriously considering the development and issuance of central bank digital currencies (CBDC). Consumer CBDC launched.
Once the legal digital currency is truly operational, the application scenarios will penetrate all aspects of social life.
Blockchain technology is the cornerstone of financial technology innovation such as digital currency. Decentralized identity authentication (DID) based on blockchain technology will be our first door card to the digital world.
2. Is DID an inevitable choice for Internet development?
It has been 50 years since the birth of the Internet, and people are increasingly migrating from the physical world to the digital world. In order to enjoy the convenience brought by network applications, users need to register their own ID and reserve their own user data, such as mobile phone number, identity information, consumption data and so on.
Although this service method has been widely used, its shortcomings have begun to be exposed more and more: First, the maintenance cost is high, the identity authentication party (such as government, finance, and social basic service departments) and the relying party ( Service provider) need to pay repeated time cost and economic cost for the identity authentication service of the same entity; second is the security risks brought by the user's password method, it is reported that 10% of users on the network impersonate others to commit cybercrime; third is data privacy On the issue of security, Facebook broke serious privacy leaks several times.
Just as people hope to solve the shortcomings of financial services through a decentralized financial architecture represented by blockchain, people also hope to solve the problem of centralized application account management through distributed digital identity (DID) of blockchain.
DID has three advantages: First, it is decentralized, based on the blockchain, to avoid the identity data being controlled by a single centralized authority; second, the identity can be controlled independently, based on DPKI (distributed public key infrastructure), each The identity of each user is not controlled by a trusted third party, but is controlled by its owner, and the individual can manage his own identity; the third is a trusted data exchange, identity-related data is anchored on the blockchain, and the authentication process There is no need to rely on the application party providing the identity.
According to the 2019 digital report released by We Are Social and Hootsuite, the global population is 7.676 billion, of which 4.388 billion are Internet users, accounting for 57%. A McKinsey research report on digital identity released in January this year revealed that if digital identity is popularized and properly implemented, 78% of informal practitioners in low-income countries will benefit, and 110 billion hours will be spent through government services, The streamlining of social security is saved.
In fact, governments and Internet giants in various countries have already started research and application of DID. For example, Foshan Chancheng, Guangdong, released the first blockchain credit identity authentication platform to solve the problem of authentic identity confirmation faced by citizens. Some government agencies in India have adopted Lynked.World, a new platform based on blockchain technology, to provide blockchain ID verification solutions for ordinary users, employers, higher education administrators and the government.
Microsoft released ION (Identity Overlay Network), anyone can use this private public network running on the Bitcoin blockchain to create a decentralized identity. Some time ago, Baidu Smart Cloud also released a DID applet digital identity wallet.
There is no doubt that DID has the advantages that the existing account management system does not have. Then, whether it is used as a supplement to Internet application services or as the first door card for decentralized applications, DID is an inevitable trend and choice for the development of the digital world. .
3. DREP reputation agreement effectively enhances the value of DID
In order to allow users to better enjoy the dividends of blockchain technology innovation, DREP, as a member of DIF (Decentralized Identity Foundation), together with Microsoft, Accenture, IBM and other technology companies, is committed to improving blockchain-based The interoperability and standards of the established identity system, and proposed DREP DID solution.
DREP DID integrates the original user accounts scattered in various public chains, and further promotes the scope to traditional platforms, while solving the current pain points of identity management, allowing more users to enter the blockchain without feeling, enjoying the decentralization Advantages and convenience of service.
Based on DREP DID, users can not only manage cross-chain interoperability and other accounts to transfer accounts on different platforms. It can also carry out cross-platform management with traditional (centralized) platforms, etc., and integrate asset and data, information encryption protection, etc. without changing the original platform's numerical system, credit system, economic system, etc., to form a complete decentralized closed loop Ecology.
DREP DID introduces decentralized private key storage technology and zero-knowledge proof to protect users' private information security. Store the corresponding zero-knowledge proof in the text of the DID as a verifiable statement of the specified information, so that irrelevant private information is not exposed.
In order to enhance the long-term holding value of DREP DID, DREP launched a reputation system. By linking user behavior with reputation, real-time feedback of user data changes, on the basis of protecting privacy and security, form a complete user reputation profile. Applications can achieve precise marketing by purchasing user reputation portraits, and users can also obtain revenue and rewards by selling their own data. Based on the use value and reputation rewards of DREP DID, users will be encouraged to maintain their reputation and image spontaneously.
Follow DREP's WeChat public account "DREP" to learn more about project dynamics; to enter the official community, please add the official small customer service WeChat, DREP is much more cute: DREP_Foundation
