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Ethereum’s co-founder Vitalik Buterin has proposed a new approach to digital identity management in the form of “pluralistic identities” for the Web3 ecosystem. This concept enables users to create multiple, context-specific identities that can be verified using zero-knowledge proof technology.
Buterin’s proposal seeks to address a significant limitation in Ethereum’s current identity systems: privacy. By allowing users to separate their online and offline activities, this new approach would reduce data exposure while still maintaining Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance.
Pluralistic IDs can be seen as an evolution of the existing digital ID paradigm. Instead of being tied to a single identity that is shared across all applications, users will be able to create separate identities tailored to specific contexts or platforms. This selective disclosure capability means that users can verify certain attributes, such as age or nationality, without revealing their entire profile.
In practice, individuals could maintain distinct identities for social media, financial services, and healthcare apps while utilizing zero-knowledge proofs to ensure the integrity of these claims. This decentralized infrastructure enables users to control multiple personas without relying on a central authority, which may mitigate reliance on big tech and state databases.
World ID, an existing project, is already leveraging ZK-based identity in real-world systems, showcasing the feasibility of this approach. However, it is essential to note that some implementations have unintentionally weakened pseudonymity due to their one-per-person logic.
This innovation addresses these concerns by offering a more flexible and privacy-preserving alternative. By enabling users to create and manage multiple identities, the system promotes role separation and accountability while providing safeguards against abuse. Furthermore, this technology can be used in various settings such as token airdrops or universal services without excluding those without capital.
Buterin’s proposal is likely to have positive implications on decentralized finance (DeFi) platforms, social networks, and decentralized autonomous organizations (DAOs). By maintaining control over their own identities, users will gain increased autonomy while benefiting from enhanced privacy.
Source: cryptotale.org
