Cardano sustainability lead predicts Decentralized ID as the next groundbreaking Web3 application

Decentralized identity (ID) solutions have the potential to become the next big blockchain application to attract a wider audience, as stated by Cardano’s sustainability lead.
During a panel discussion at the Web3 Corporate Innovation Day, Alexandre Maaza of Cardano pointed out that blockchain technology still lacks compelling use cases to draw in the next generation of blockchain enthusiasts.
However, the rise of blockchain-based decentralized identity solutions could serve as the next groundbreaking application to entice millions of new users. Maaza emphasized that the Cardano Foundation believes that Web3 is still missing a “killer, scalable use case” that is relevant for both businesses and individuals.
Web3 decentralized IDs prioritize privacy, allowing users to provide only essential information required for verification, rather than sensitive personal data. Users of decentralized IDs can also retrieve their information using seed phrases, as identities are stored locally in their crypto wallets, making them increasingly vital for safeguarding privacy.
Blockchain requires a practical use case beyond speculation to attract the next billion users. While much of the excitement surrounding cryptocurrency stems from price speculation by individual investors seeking profits, blockchain technology needs a non-speculative use case to appeal to a broader audience, according to Maaza.
Justin Hyun, Ton Foundation’s director of investments, also believes that bringing onboard the next 500 million users will necessitate simple apps with real utility, such as blockchain-based Telegram mini apps that could act as a gateway to mass blockchain adoption.
Hyun emphasized the importance of simplifying complexity for users to onboard half a billion users successfully.
Developing a decentralized ID solution may not directly generate profits for most companies, but it could lead to significant cost savings by preventing potential data breaches. Maaza highlighted the importance of digital identity for certain data-harvesting businesses.
Cardano is among the blockchain networks working on its own non-custodial digital identity wallet to enhance security and privacy.
Despite being in its early stages, some countries are already exploring decentralized IDs. For example, Istanbul is leveraging decentralized identity solutions to improve data privacy using Omchain’s proof-of-identity (PoI) without the need for database queries during authentication.