Blockchain
MicroStrategy to Build a Bitcoin-Based Decentralized Identity Platform
MicroStrategy has announced plans to launch a decentralized identity solution on the Bitcoin (BTC) network that stores and retrieves information using ordinal-based memberships.
MicroStrategy Executive Chairman Michael Saylor announced the solution, called “MicroStrategy Orange,” at the company’s Bitcoin For Corporations conference on May 1st.
Saylor explained that the aim of the solution is to provide reliable, tamper-proof and durable decentralized identities using exclusively the public Bitcoin blockchain.
“[Its aim is to] provide reliable, tamper-proof and long-lasting decentralized identities using only the public Bitcoin blockchain as a data source,” second to an unauthorized draft of the solution released by MicroStrategy on GitHub.
Decentralized identifiers (DIDs) will allow for pseudonymity in the same way that real-world identities are not linked to Bitcoin addresses and transactions.
MicroStrategy Orange consists of several components: Orange Service, Orange SDK and Orange Applications.
Orange Service allows users to issue DIDs to their staff and deploy applications. Meanwhile, Orange SDK and Orange Applications provide the necessary tools for customization and integration across various devices.
“Wouldn’t it be great if instead of a blue check mark, a green check mark, etc., there was an orange check mark that was a global standard? With MicroStrategy, maybe we could get closer to this idea of decentralized identity, with Bitcoin.”
–@saylorExecutive Chairman, MicroStrategy… pic.twitter.com/KFaQH7CaZm— MicroStrategy (@MicroStrategy) May 1, 2024
MicroStrategy has already developed an application called “Orange For Outlook”, which embeds digital signatures in emails so that recipients can authenticate the actual identity of the sender.
Accepting an invitation email signed by the MicroStrategy DID initiates the onboarding process, which generates a unique DID as well as a public and private key pair for each user.
The user’s DID and public key are stored on the Bitcoin network and they can then start inviting their staff to create their own digital identities.
Looking ahead, MicroStrategy aims to extend the capabilities of its Orange applications across other messaging platforms, social media networks and various applications in the e-commerce, enterprise and fintech sectors.
Previous BTC-based identity solutions
Microstrategy is not the first company to investigate Bitcoin as a potential identity solution. In 2016, the BitID project was launched to simplify identity verification for online platforms, ensuring user privacy. However, this project is no longer active.
Furthermore, ION (Identity overlay network) is an autonomous identity system that operates on a Sidetree-based DID network and incorporates the Bitcoin blockchain and IPFS.
Other blockchain networks, such as World currencyuse similar tactics to build a global digital identity and financial network.
Also notable is Ecuador’s Sistema de Dinero Electrónico. Ecuador introduced a digital currency linked to a government-issued digital identification system, which allows citizens to access and use the currency using their ID. Ecuador’s initiative was finally abandoned after facing criticism from state banks.
MicroStrategy’s announcement comes shortly after the company reported a net loss of $53.1 million for the first quarter on April 30.
Notably, the figure does not take into account the significant increase in the market value of their Bitcoin holdings. The company currently holds 214,400 Bitcoinswhich appreciated 65% during the quarter, valued at the time at $15.2 billion.