MicroStrategy, led by Michael Saylor, is delving into the realm of digital ID through the launch of a new system anchored on the Bitcoin blockchain, dubbed the “MicroStrategy Orange” protocol. The move puts the firm in direct competition with Worldcoin’s World ID, a system developed under the aegis of OpenAI co-founder Sam Altman, which uses biometric data to verify users.
The MicroStrategy Orange protocol diverges from Worldcoin’s approach by eschewing biometric data. Instead, it will use Bitcoin’s inscription technology, leveraging the blockchain’s “witness” segment facilitated by the Segregated Witness (SegWit) optimization. This method enables the creation of decentralized digital identities (DIDs) that are secure and immutable due to their integration into the Bitcoin blockchain.
The DIDs are designed to combat issues like spam and AI deepfake scams in the crypto space by providing a reliable means of verifying digital identities without central oversight.
The SegWit optimization in Bitcoin’s blockchain allows the MicroStrategy Orange protocol to embed digital identity data securely and immutably into a part of the transaction structure known as the “witness,” which is separate from the main transaction data, thus not affecting the primary transaction purpose while ensuring the data remains tamper-resistant.
This strategic move by MicroStrategy could potentially enhance the utility of the Bitcoin blockchain by extending its applications to include secure and immutable identity verification processes. This approach offers an alternative to systems relying on biometric data, promoting a potentially more privacy-preserving method of managing digital identities within the blockchain ecosystem.
Saylor’s firm announced the new venture at the MicroStrategy World Conference. Saylor is renowned in the crypto community as a vocal Bitcoin maximalist and proponent. His notoriety in the space primarily stems from his strategic decision to adopt Bitcoin as a principal reserve asset for his company, leading MicroStrategy to acquire substantial amounts of Bitcoin since 2020. The move marked one of the first instances of a publicly traded company investing a significant portion of its treasury in Bitcoin, thereby influencing other corporations to consider cryptocurrencies as a legitimate store of value.
Saylor’s advocacy extends beyond corporate investment; he frequently discusses Bitcoin’s potential to act as a digital gold and a foundational element for future financial systems, positioning it as a hedge against inflation and a tool for financial sovereignty.
That offers a sharp contrast to Worldcoin, whose co-founder, Sam Altman, has shown strong interest in Ethereum and other blockchain technologies. The company recently disclosed plans to launch “World Chain”, a blcokchain platform tied to its digital ID system, as a Layer 2 solution on Ethereum.
Source: DailyCoin
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May 3, 2024 – by Cass Kennedy
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