Microsoft Points To Bitcoin, Ethereum, And Litecoin As Three Specific Platforms That Are Suitable Foundations For DIDs


Have you ever been a victim of identity theft? Well, it is one of the ugly experiences. Imagine that sometimes the credit card holders are calling you up to change all your dispute charges and cards, and resetting the passwords to all your applications and much more. And this leads to increase your curiosity regarding the leak of information.

Always you will worry about the person who may call up to your cell phone with a fake information to commit a SIM porting hack, which means that they would have the access to all your text messages and data. Once someone gets the access to your texts, then they can easily find up ways to all your online services and can use your data, even if you are using two-factor authentications.

People are highly relying on the internet for communicating with friends and relatives, staying in contact with the professional associates, and even confirming the credit card purchases for the face to face transactions. Every time, users name, passwords, and other personal information are being shared on the centralized corporate servers, which remain ripe for the picking, despite the attention on this issues since years.


Once your personal information genie is lost, then it will be a huge issue to put it back in the bottle. Furthermore, the only issue you will have when it comes to the managing the digital identity, and in the present scenario, it is regarded as one of the most critical problems which are common in every system and organization.

Also Read: Ethereum, Bitcoin Cash, Ripple And LiteCoin

If a malicious party wants to compromise with your ID, they would not probably search your bag to find out the ID card for further details, rather, they would prefer the security systems where you have shared all your information. They can easily hack those systems to get your personal data and will steal other information too to obtain a fake license.

Therefore, to get out of this insecure centralized information model towards the decentralized authentication model, the best option would be the combination of cryptographic hashing and blockchain technology. Recently, the software giants have explored the behaviour of the present blockchain projects to look after the flaws as well as artificial centralization.

As per the sources are concerned, Microsoft has seen the strongest case of the blockchain technology, and that would be the only factor which will lead to developing a system of digital identities by following the mingling process of the world of online services and the real world. This idea is regarded as one of the innovative one, and over the last 12 months, the organization is investing in this approach to incubate a set of creative ideas for using the blockchain technology, which will have the capacity to generate new digital identities, will enhance personal privacy that are designed from the groups, and will have a security and control over the data.

As per the current climate, having an online identity is very much important as you are sharing numerous numbers of data on various apps, thus handling the information will be difficult. Therefore, Microsoft wants to return the ownership of the electronic identity to the customers. Everyone needs a digital identity they own, which will provide security and privacy to store the elements of digital identity. And this self-made identity is quite easy to use and also gives complete control over how your data is accessed and used over the channels.

Details On Blockchain Decentralized Identification System

The idea of using the identity systems is highly reliable and can handle the customer’s data directly, which will include the matter of access as well as verification. But, this is also possible that the self-owned, encrypted identity would mean that all the apps will end up in communicating with the protected data, as per the views of Mr Patel.

Therefore, the blockchains may become of the part of this infrastructure. Some of the public blockchains such as Bitcoin and Ethereum and Litecoin are selected to provide a solid foundation for the recording DPKI operations, rooting DIDs, as well as for anchoring attestations. Customers are very much relaxed after the hearing the news that Microsoft is going to build the decentralized IDs on the blockchains.

Microsoft and Blockchain

The company is pointing on Bitcoin, Litecoin, and Ethereum, as these there are the specific platforms, which are best for the foundation for the DIDs. As per the sources, Microsoft’s experts are looking forward at the state of public blockchains, and they have found that some of the projects are becoming less decentralized.

There are certain communities of blockchains who have increased their on-chair transactions capacity, that means the size of the blocks, and this approach is generally degrading the decentralized state of the networks as well as could not reach the millions of transactions. This has decreased the efficiency of the system per second which is generating at the world-scale.

Therefore, to overcome these barriers from the technical platforms, the organization is planning to collaborate on the decentralized layer 2 protocols, which will help in resolving the issue and will guide in achieving the success at global scale. This will preserve the attributes of a world-class DID system.

In the new post, Microsoft has announced the embracement of public blockchains such as the Bitcoin and Ethereum, which are basically used for the decentralized identity systems. Previously, the tech giants were supporting the blockchains based decentralized IDs through the Authenticator apps.

Unlike the forms of the identifications which are now used in the present scenario, a decentralized identity system is not controlled by the single organization like the government or any of the large company. The idea of using this system helps to remove the possibilities of the censorship as well as gives the individual full control over the reputation and identity.

There are specific examples where the blockchain failed to prove its best in the centralized systems. Therefore, Microsoft analyzed every situation and took their time to establish the new form of the blockchain technology that would help to store the data or information in a secure state without anyone interference and medium.

There would be no one in the middle tier to control the process; rather, individual will have their own authority and power to go through the changes that will occur in the future. The organization has successfully turned toward the public blockchains just to enable the ability to permissionless, privacy as well as self-ownership access.

The decentralized process will not have a single entity to operate and to control over the processing. There will be certain points of this transaction, which will be judged by the developers at each moment to avoid any kind of misuse and theft issues.


After doing lots of research and examining the things minutely regarding the decentralized storage systems, blockchains, consensus protocols, and the organization believe that these emerging standards will change the concept to a great extent by resolving the problems occurring in the blockchain technology as well as in the protocols.

And the changes will be suitable for enabling decentralized IDs, as per the recent announcements. Identity is considered as one of the long-touted use cases that are highly effective in the blockchain technology, which doesn’t have anything to do with the currency and payments.

Therefore, the company has announced in the recent gathering that they are going to use the Bitcoin, Ethereum, and Litecoin as they are suitable for the foundations of the DIDs. There is a bundle of projects that are related to the identity which have popped up in the recent days with the UPort and Blockstack ID.

These are the two most popular examples that are being used in the present days. Microsoft has already planned to work with the DID method implementations that will follow a specific standard outlined by the W3C group. But, till now, the tech giants have not disclosed the specific DID procedures integrations at this time.

Approaches Of Tech Giants Towards The Decentralized Identity Foundation

The tech giants of the Microsoft has unravelled the plans to utilize the blockchain technology to resolve the issues and challenges that are faced by the managers in identifying the personal data digitally, which will include the concerns on privacy and security. As per the views of the developers, the decentralized digital identities, as well as the blockchain, are regarded as the future, which will definitely change the perspective of the world.

Unlike the traditional forms of the identification which are used today, a decentralized system of identity will never include any medium to control over the data; rather, it will have their separate versions to secure the data or information. It is a key takeaway that will be utilized in separate sections instead of relying on the third-parties. Blockchain could be more powerful than the other technologies which are trending in the market. Today, users have grant access to the countless apps, which will only be controlled by the decentralized identification system, which is far beyond your expectations.



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