July 3, 2024
Add These 5 Decentralized Identity Projects to Your 2024 Watchlist
Dear Subscriber,
Remember the good old days when we could leave our doors unlocked and not worry about a thing?
Yeah, me too. But times have changed. Today, if you leave anything unattended, it’s bound to end up in someone else’s hands.
Artificial intelligence (AI) is an incredible advancement — one you can learn more about in Dr. Martin Weiss’ upcoming briefing, AI Profit Bonanza, this coming Tuesday, July 9 at 2 p.m. Eastern. Just be sure to save your seat.
But like any tool, it can be used for good or ill. And AI is now empowering bad actors with unprecedented abilities to steal your identity.
We’ve all heard horror stories about identity theft, and now, these threats are more prevalent than ever. I recently wrote about the OKX identity hack, emphasizing the growing urgency for robust digital identity solutions.
As a reminder, traditional identity verification is centralized. Institutions like banks or social media platforms hold and manage your data — including personal information like your full name, email address and even social security number — on your behalf.
The problem with that is you have to trust these institutions and their security protocols.
But I’ve seen enough hacks and leaks to know that I don’t trust them.
That’s why, according to a recent report from Fortune Business Insights, the digital identity solutions market is expected to skyrocket from $30.81 billion in 2023 to an astounding $101.37 billion by 2030.
This surge is driven by the increasing demand for secure remote access and regulatory compliance.
And I believe decentralized identity solutions, or DIDs, will claim a nice piece of this pie. DIDs are emerging as a vital solution for safeguarding online privacy and security by flipping the traditional model on its head.
DIDs use blockchain technology to allow you full control over your digital identity. This makes your information a lot more secure and private. (You can read more about them in my recent Weiss Crypto Daily here.)
I anticipate a wave of crypto sectors — especially the DeFi and NFT marketplaces — to jump on the DID bandwagon. This could open doors to innovative services and groundbreaking business models.
As technology evolves to create more secure DIDs, they are likely to operate seamlessly across various blockchain platforms, reducing friction and enhancing user experience.
DIDs will also play a pivotal role in regulatory compliance, protecting your privacy while adhering to standards. Balancing innovation with compliance will be key.
Beyond crypto, DIDs could potentially revolutionize sectors like healthcare and finance, providing secure identity verification and potentially replacing traditional ID systems.
Today, I want to explore the five leading DID projects that are on the path to creating this future. They are all poised to revolutionize the digital landscape in 2024.
Some are controversial. And not all may have lasting power.
But these innovations promise to give users unprecedented control and security over their digital identities. So, I believe they are worth researching further.
(WLD, Not Yet Rated)
Worldcoin aims to create the world’s largest privacy-preserving human identity and financial network. It uses a biometric device called the Orb to scan your eyeball to verify unique human identities. Once verified, it grants a World ID that ensures equitable access to the global economy.
Worldcoin now supports integrations for its World ID with platforms such as Minecraft, Reddit, Telegram, Shopify and Mercado Libre. Additionally, it supports integrations with Discord, Talent Protocol and Okta’s Auth0.
Its token, WLD, is trading near $2.25. But it could slip further — down anywhere between $1.60 to 70 cents — if the market gives one final flush.
You can only find WLD on decentralized exchanges.
Lifeform (LFT, Not Yet Rated)
Lifeform is a universal DID solution that integrates major web3 chains like Bitcoin (BTC, “A”), Ethereum (ETH, “A-”) and Solana (SOL, “B”) , simplifying blockchain adoption for the next billion users.
That means Lifeform’s key benefit is interchain operability.
With Lifeform, users can benefit from multiple chains without proving ownership on a specific one. For instance, holding an NFT on the Bitcoin blockchain can still qualify a user for Ethereum airdrops with Lifeform. It also supports multi-blockchain domain resolution, enhancing cross-chain transactions and social networking.
By integrating its DID solution across blockchain networks, Lifeform makes asset management more transparent and convenient.
And it’s not a small project, either. It boasts over 3 million users and the backing of investors like Binance Labs and IDG Capital
It’s token, LFT, saw a remarkable bounce from around 10 cents to 30 cents directly after the OKX news.
That’s a 185% gain right in the middle of a broad market correction!
However, many holders took this opportunity to exit their positions, sending LFT back near its all-time low. It’s currently trading near 6 cents.
Like WLD, LFT can be found on decentralized exchanges.
Privado.ID
Designed as a decentralized, trustless identity platform, Privado ID supports a wide-open ecosystem and enhances privacy and data sovereignty.
This neutrality allows for broader market capture and interoperability.
Using cryptography and zero-knowledge proofs, Privado ID validates users’ credentials without exposing personal information. It supports W3C identity standards, which are optimized for interoperability, security, privacy, web accessibility and internationalization. And Privado also integrates with various blockchains.
This approach ensures secure identity verification, streamlines regulatory compliance and meets the rising demand for privacy-focused digital identity solutions.
And it’s already being utilized by other applications. A prime example is DigiShares, a white label tokenization platform. It is leveraging Privado ID for secure, decentralized identity verification and streamlined investor onboarding through know-your-customer protocols and e-signing.
Privado also recently announced its integration with Linea, a new ecosystem for decentralized applications.
Privado doesn’t have a token yet, but this project is just getting started.
Ethereum Name Service (ENS, Not Yet Rated)
If you’ve transferred cryptos from your Coinbase or Kraken account to your MetaMask wallet, then you know how annoying it is to check your MetaMask address.
Those are long strings of characters and so easy to mistype or misread.
The Ethereum Name Service translates those complex Ethereum addresses into simple, human-readable names, like “john.eth.”
Based on the Ethereum blockchain, this decentralized system simplifies transactions, enhances security and integrates with various decentralized applications (dApps) and platforms.
ENS supports multi-address storage, smart contracts and metadata, making it a versatile tool in the Ethereum ecosystem. Users can host websites, manage digital identities and streamline interactions in large swaths of the DeFi and NFT spaces.
And since it’s governed by a decentralized autonomous organization, ENS ensures democratic decision-making and aligns with the principles of decentralization.
Since hitting its low in April, the ENS token has surged to $34. That’s a remarkable 250% increase, and it makes ENS one of the top performers in this crypto downtrend.
(And as my colleague Dr. Bruce Ng says in his market updates, the strong performers in a down market are the best place to start looking to find cryptos that will outperform in rallies.)
Currently, ENS is pulling back from its recent high, with key support zones at $25 and $22. To maintain its strength, ENS needs to hold the support between $19 and $22. If it fails to do so, we could see it drop to $15 or even $12.
ENS is available on major exchanges like Coinbase, Kraken and Gemini, as well as decentralized exchanges.
Galxe (GAL, Not Yet Rated)
Galxe is transforming web3 credential management by giving users complete control over their private data and identity.
With over 18 million active users and partnerships with 5,000 brands, Galxe aggregates credentials from on-chain and off-chain sources for diverse applications like sybil resistance and credit scoring.
Backed by investors such as Binance Labs and Multicoin Capital, Galxe uses its GAL token for governance, fees and credential curation.
Celebrating its third anniversary, Galxe continues to innovate with tools like Application Modules, Credential Oracle and Credential API, aiming to create an open and collaborative credential data infrastructure.
GAL is currently trading at $2.26, holding steady above its support level of $2. Should it close above $2.40, we might see a push toward $3.50. However, if it loses this support, the support level to look for is at $1.20.
GAL is listed on the Kraken exchange and can also be traded through decentralized exchanges.
Where DID Will Go from Here
It’s important to note that DIDs are a new narrative. While the projects listed above are the leaders at the moment, even the best technologies face hurdles.
For DIDs, the shift from traditional to decentralized systems isn’t a walk in the park. It requires significant changes in both technology and regulation.
Not to mention the fact that meeting global data protection laws is a mammoth task that requires constant updates. Each country has its own set of requirements, turning compliance into a relentless moving target.
But I believe the payoff will be great for projects that can successfully field those challenges.
That’s because navigating the blockchain and cryptographic setup can feel like deciphering an ancient code. Managing private keys is a hassle. And data sharing across networks is risky business.
Users need a better way to securely store and use their keys without exposure. Especially if we hope for mass adoption of not only cryptocurrencies, but of the DeFi system.
The challenges are real, but so are the rewards for those who master them.
Best,
Mark Gough
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