An easily overlooked DID is Web3's passport.

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The design on the Internet was not provided to people with special procedures. As a result, the issue of personal digital anger on websites and apps. This separation may have been necessary in the early days of the Internet, but its problems have been shown to prove that thousands of people are now online. Usernames and passwords are still key patterns, but have again proven to be insecure patterns. On average, everyone should have a 70-80 password, which reduces the user experience. In fact, there are millions of companies that help businesses and individuals manage their cash flow, including Okta, 1Password, and Dashlane. More importantly, the user does not need to be online. Instead, they were hired by businesses and agencies in the field. As a result, ID numbers are vulnerable to theft, censorship, censorship, or even loss.

The emergence of Web3 has revolutionized the industry and reaffirms the importance of building resilience. Compared to DeFi, NFT, and DAO, Distributed Identity (DID) is one of the terms most often disagreed with, but I think it's the main technological outcome for Web3 applications. Creating flexibility and the ability to integrate can create a bigger and more expansive design space.

In this report, we introduce the key concepts of DID and the current DID ecosystem at an advanced level, and take a look at some of the work that lies ahead to lay the foundation for Web3 itself.

Distributed Identification (DID)

The W3C DID specification is a widely accepted certification for engines integrated across multiple networks and platforms.

Here is a summary of the DID architecture. A DID is an Internet address that a person can have and manage. Can be used to find DID files containing information related to DID. DID files contain important information to be identified using information such as access, data encryption, communication, etc. Encrypted credentials, such as digital signatures, allow organizations to authenticate these symbols.

Basic building blocks of the DID architecture

After all, DID is an information center. Since users manage the hub, they can decide when, to whom, and in what situations personal information is presented. As many people adopt the DID model, individuals will not be confined to one environment or isolation.

DID provides user control, security, privacy and mobility.

DID allows the use of new data.

In the physical world, the self is essential to the proper functioning of a community. Passports allow the government to identify citizens, and driver's licenses allow citizens to apply for right of passage, diploma, etc.

Likewise, DID makes perfect sense in the Internet sector. Below we present some current issues with Web3 that DID can resolve.

NFT - Authenticity and Identity

Deception and plagiarism continued to plague artists and designers. For example, Derek Laufman, digital artist and designer for Marvels Super Hero Adventures, unwittingly saw his work auctioned off on the NFT Rarible platform. Stories like this are plentiful.

NFT fraud continues to be rife.

(Source : Twitter)

Strong DID power can solve this problem. Applications can be built on top of DIDs, allowing developers to prove that NFT represents a digital or physical device. Buyers and sellers can also identify the location of the artwork. DID can also facilitate better communication between artists and communities, for example by restricting NFT members to community members to restrict ratings from scalpers, or by providing special NFT language content for special owners.

More broadly, NFTs can be used as anchor points for partitions. Not only are they already using usernames, but some are using NFT activities to verify their online presence. For example, Manifold co-founder @richerd explained that he turned down a $ 9.5 million claim for his NFT cryptopunk because he believed his cryptopunk was his and his brand.

NFT based online number

(Source : Twitter (@richerd))

Take DeFi to the next level

To date, mortgages have been the cornerstone of DeFi's growth. However, the goals of cryptocurrency financial contracts are unreliable and unauthorized, often requiring too much money. For example, an ETH loan from MakerDAO requires a loan rate of 130-170%. While this has bolstered DeFi's growth in recent years, regulators often limit its use to cryptocurrency traders looking to bolster it. Most people want to borrow money because they don't have the money they need.

Reducing or eliminating financial requirements is the key to bringing DeFi to larger applications. A robust DID layer allows you to authorize “on-chain” loan scores and provide loans to users in real time. And because consumers are able to manage their credit scores, they can better monitor and improve their credit habits. Thus, DID offers an opportunity to extend the independence of financial management.

Additionally, having a strong autonomous layer in the financial application can solve other current DeFi issues such as:

Improves the equitable distribution of token drops by identifying true owners and reducing the incidence of robot dilution drop situations.

Reduce spam / Sybil attacks by monitoring access to DeFi pools using DID or providing compliance tools to identify partners and authorize affiliates.

He takes users through the dark jungles of Ethereum, teaching participants to behave responsibly.

Distributed Autonomous Organization (DAO)

DAOs typically use token-based controls for voting, interception, and advancement. This usually makes sense. Many token holders have the most skins in the game. Members can build a reputation in DAO, but they must build credit by attracting their new space.

DID can manage user reputation across multiple DAOs. Evidence of migration from one DAO to another shows the trust that already exists in the real world, preventing participants from starting from scratch. In addition, other Web3 sources, such as partnering with Gitcoin, posting articles for Mirror, or granting rights to Radicle, could help DAOs find qualified competitors.

STI ecosystem

The DID ecosystem can be divided into multiple layers, with each layer on top of the bottom process. We take full advantage of the four-tier DIF model and with minor modifications present our current DID operations as our main focus, but remember that this is a simple structure and generally works. in stages.

Txheej Decentralized Identity Ecosystem

(Source: DIF, Ambre Group)

Level 1: Characters and patterns

Models, numbers and names establish established reliability processes to ensure standardization, mobility and interference. It also allows the network to register and manage DID channels and provide developers and users with the rights and history of the network itself.

The Decentralized Identity Foundation (DIF) plays a key role in this process and is the cornerstone of the ecosystem. Establish and maintain an open and integrated ecosystem for the DID team as the basis for the development, consultation and management of all activities.

Layer 2: Infrastructure

The infrastructure and proxy framework allow applications to interact directly with each other and with authenticated applications. These solutions include communication, storage and priority management. We further assert that Ceramic and ENS are the first to develop a DID infrastructure (the distribution of ENS may be inconsistent, but we are putting them layer by layer as we expect that proof and application will be needed to above the ENS, in the future).

Layer 3: Certificates

Certificates must be administered, modified and exchanged. The purpose of this layer is to determine how DIDs discuss administrative and authentication credentials, and to securely transfer personal information.

BrightID is a major player in this field. Personal relationships with over 30,000 users allow people to prove that they don't have multiple accounts for an application, reducing the risk of a Sybil attack.

Vitalik Buterin discusses the capabilities of the BrightID app.

(Source : Twitter (@VitalikButerin))

Layer 4: applications, wallets and supplies (applications, wallets and accessories)

These layers are probably the most familiar to readers and are intended to provide practical and useful information to consumers. Some projects, such as Goldfinch (unsecured loans), use their own business analytics, but the goal is to promote customized solutions as they grow. In comparison, other applications such as TrueFi (secured loans with higher scores), Gitcoin (public funds) and the Escsign protocol (electronic distribution) already use existing DID tools.

Layer X: Cross

These campaigns have passed one level and affected many levels. For example, European GDPR data protection laws affect all parts of the ecosystem.

Value of tokens in the DID ecosystem

(22 November 2021: CoinGecko, Coinmarketcap)

Select the DID project

Ethereum Name Service - Ethereum Public Archives

Ethereum Domain Name Services (ENS) is a simple tool that can define Ethereum entities in public data. Its main function is to map human readable names to machine readable characters. Instead of negotiating with "0x7fc7a9694A09077e137f953108265ad59cCF5ba3", you can go to "amberfin.eth". Additionally, due to the hierarchical nature of the ENS, anyone with a domain name can have a subdomain. For example, Amber Group has "amberfin.eth", so it can also create "pay.mberfin.eth". ENS lists can also contain archived data, allowing users to store multiple records, all linked to a single character. There are no central organizations or companies involved in this setup.

ENS information from Amber Group

The information used for the ENS continues. In August of this year, ENS full DNS integration was launched, allowing you to send encrypted calls to "example.com" instead of "example.eth". You can also use .eth domains to create impactful websites. For example, Ethereum co-founder Vitalik Buterin used DNS integration with IPFS to create a robust, censorship-resistant website https: //vitalik.eth/.

The ENS will play an important role in the future of portable and decentralized personalization. Registered as a DID representative, ENS names can be packaged as DIDs in order to create interactions. Many Web3 users have already used ENS as a symbol. A survey of ~ 300 Ethereum users found that ~ 64% of users already had ENS. Chain analysis showed that ENS users have an average of 2.5 domain names. With the introduction of additional features such as support for NFT avatars and the development of ENS via dApps, Web3 users will increasingly be able to use ENS as a true Ethereum public domain.

Supports ENS lists and avatars in Uniswap

ENS ecosystem

On November 2, the ENS announced that it would accept DAO agent applications and $ ENS airdrop management tokens to become a regulatory entity. The airdrop accounts for 25% of all total funding, with the rest going to community finances and donors. Distribution is the initial distribution of half of all tokens to previous people (former participants and users) and half to future people (community funds).

Distribution of ENS tokens

Holders of $ ENS tokens only have DAO authority and no other benefits. Specifically, in order to claim their tokens, holders of $ ENS tokens must sign the ENS Law regarding key principles such as governance rights, anti-lease behavior and joining the global name. So, one of the great advantages of the $ ENS token is that it is a great experience in the digital product value chain.

The ENS generated nearly $ 20 million in revenue, mostly from new listings, which went to the DAO Treasury.

ENS Monthly Income

(Source : Dune Analytics (@makoto))

A company's ENS revenues also increased. This indicates that users will take longer to register, get a higher value for the domain name (for example, a shorter domain name), or both.

ENS turnover

(Source : Dune Analytics (@makoto))

With a one-day high of around $ 8.4 billion, the total diluted market value of ENS is now [US $ 4.2 billion], meaning it is based on a PER of 236x 12 months ago.

ENS value operation (full dilution)

(Source: CoinGecko)

MetaMask - a gateway to blockchain applications

In new technological processes, the solutions with which users are most often involved will have a major impact on the future development of the industry. The browser is a battle for the Web1 (Netscape, Internet Explorer, Google Chrome), and the wallet is the battle for the Web3, as are Web2 applications (Facebook, Instagram, Netflix, Spotify).

If you've interacted with a Web3 application before, you may have used Metamask. Launched by ConsenSys in 2016, Metamask is an illegal cryptocurrency wallet that allows users to interact with the Ethereum blockchain and Ethereum compatible networks (e.g. Polygon, Arbitrum, Avalanche).

While not strictly for loved ones, Metamask functions as a de facto app to access Ethereum sites on over 21 million monthly users. Combined with Web2 single sign-on (SSO) options, almost all EVM-based Web3 applications provide a "metamask login".

Augur (left) and OpenSea (right) recording options

Based on the robust psychiatric model, Metamask addresses the potential and risks of managing dementia, presenting a wide range of DID solutions. Metamask users actually have the tool in their wallet because they hold their own keys. You don't have to rely on the safety and care of a third party. Users can also swap assets from one application to another. For example, NFTs purchased from SuperRare can be easily sold on OpenSea, which limits the reliability of the platform and increases mobility. I can say that the consumer experience has improved as well. Users don't have to go through a complicated registration process and manage multiple usernames / passwords, they just need to log into the Metamask wallet and try new apps. And while the "wallet login" might look cracked, it's important to remember that these wallets are just a user interface and they all use the same account root. You can send your Web3 number to another wallet.

Import your account with Metamask

However, there are many hackers and crooks out there. Web3 users should be particularly attentive to the security of their wallets so as not to lose control of all their assets. Losing your wallet can lead to permanent loss of money. Therefore, some users may also prefer to allow security and account management to a third-party administrator.

MetaMask hopes to move gradually to managed content. ConsenSys founder Joseph Lubin recently said that Metamask will launch the brand in the future. Erik Marks, senior software engineer at Metamask, said the team is hoping the Metamask token use case is credible, but the project is "completely open to doing community campaigns." Some believe that as Metamask airdrops, users who have used the Metamask exchange will be the deciding factor.

The CEO of Consensys talks about the release of the Metamask token.

(Source : Twitter (@ethereumJoseph))

MetaMask typically benefits from the built-in exchange function (monetization), which gathers data from decentralized exchange aggregators, manufacturers, and DEXs and adds 0.85% of the exchange value to it. Since the start of this year, the adoption of job exchanges has grown exponentially. Metamask received around $ 40 million in trade-in value from the exchange last month.

Ethereum L1 Metamask Swap Volume daily and DAU

(Source : Dune Analytics (@tomhschmidt))

In fact, growing sales of Metamask Swap have surpassed growing sales of Sushi Swap and Curve.

Comparison of Metamask Revenue and DeFi Revenue Protocol

(Source : Dune Analytics (@momir))

Uniswap and 1inch, leaders of Ethereum DEX and DEX aggregators, are making the most of Metamask's capital.

Location of Metamask swap liquidity

(Source: Dune Analytics (@momir), November 21, 2021)

The ability to measure the size of a Metamask token is wide. While commodities cannot be compared directly, the recent financial equity of ConsenSys ($ 200 million, valued at $ 3.2 billion) may provide an estimate of the potential of the Metamask token (valued at $ 3 billion by Sky Mavis). with money), the value of AXS tokens is around $ 4-5 billion.) Direct token comparison also shows a lot. Requests ranging from US $ 500 to US $ 1,000 per MAU indicate potential revenues ranging from US $ 0.5 billion to US $ 21 billion.

ConsenSys measuring instrument

(Public data, Investment IQ, CoinGecko, Amber Group estimates)

ceramic

Ceramics is a public data classification for managing dynamic and disparate Internet data. This allows developers to build applications without databases or servers by creating flexible primitives called Ceramic flows.

In Ceramic, all applications are represented by an addition contraction only called flow. Each stream (stream) is an acyclic graph (DAG) of information stored in IPLD with an unalterable name called StreamID and a valid state called StreamState. The flow is a similar concept to the Git tree, and each flow can be thought of as its own blockchain, ledger, or event log. Tile files are a type of Ceramic StreamType commonly used for personal metadata (such as archives, graphics, accounts), user-generated content (eg, blog posts, social media), files DID, credentials, etc. Alternative to the database.

The process does not depend on a particular blockchain. Instead, it can act as a "data chain" where the user only needs to synchronize data from a given file to determine the status of a document. Users do not need to synchronize the state of the entire network like most blockchain networks (such as Bitcoin, Ethereum) do. There is therefore no international list.

One of Ceramic's key tools is IDX, a custom integration system that provides built-in storage for all recording applications and stores user information. You can think of him as a decentralized language user. Thus, IDX provides users with self-management of data and information without the need to shut down an application, and simplifies application security and port data. At the same time, developers can create rich application files without users having to recreate the same files in each application.

Ceramics are key intermediates in the DID technology production group. Certain projects developed by the Ceramic network have experienced market traction and adaptability, in particular:

Board: CAD management management platform that uses a ceramic platform to store recommendations.

Rabbithole: You can earn points and cryptocurrency by supporting the user's Web3 project app. Rabbithole uses a ceramic network to connect multiple Web2 and Web3 accounts to a shared DID network, enabling better user experience through other Web3 applications.

ArcX: A fair application that provides score and symbol scores by providing "DeFi Passports".

Therefore

The Internet is probably the most important invention of this century. The past two years have changed the importance of the flow of information in the community: news, politics, news, education and relationships. But even though the market is shifting more from atom to byte, our online personas are still unrealistic and isolated on the platform.

With the advent of the Internet of Things, a robust DID solution is needed to make Web3 a theme by enabling new applications. We are only at the beginning, but the future is bright. Due to the combination and interference of the DID model, the output power of each new application may affect other applications. We anticipate that the importance of DID solutions will continue to grow exponentially over the next several years and launch the next great cycle of Web3 applications.

Annex 1: Presentation of the ENS Directory

First, connect your wallet to the ENS app.

Find the domain name you want to register. The cost of registration at the ENS varies according to the duration. The shorter the name, the higher the price. You can apply for many years if necessary. It is best to register for at least a few years, as each registration and renewal will be expensive. Click "Apply", wait a moment and complete the registration form to secure your ENS name.

Go to "My Account" and reconfigure your data. You can only have one ENS key name for each Ethereum address. Then either party you deal with can send you to the .eth address instead of using your public key.

You can edit registry entries by clicking on the ENS registry. If you want to associate a DNS registrar with an ENS domain name at the same time, instructions are published on the ENS Medium blog.