MICROSOFT LAUNCHES DECENTRALIZED IDENTITY PLATFORM ION ON BITCOIN’S BLOCKCHAIN

A radical new framework for how to authenticate online identities just went live on the Bitcoin network.

Microsoft’s Decentralized Identity team has launched the ION Decentralized Identifier (DID) network on the Bitcoin mainnet. This network is a layer 2 technology similar to Lightning except that instead of focusing on payments it uses Bitcoin’s blockchain to create digital IDs for authenticating identity online.

An ID network like ION could be the key to unlocking a web where users no longer have to fumble with passwords, emails and cell phones for verification.

“We are excited to share that [version 1] of ION is complete and has been launched on Bitcoin mainnet. We have deployed an ION node to our production infrastructure and are working together with other companies and organizations to do so as well. ION does not rely on centralized entities, trusted validators or special protocol tokens. ION answers to no one but you, the community,” Microsoft’s Daniel Bucnher writes in a blog post.

What is decentralized identity??

Decentralized identity is a trust framework in which identifiers, such as usernames, can be replaced with IDs that are self-owned, independent, and enable data exchange using blockchain and distributed ledger technology to protect privacy and secure transactions.

Why it matters? 

The ION Decentralized Identifier (DID) will utilize the Bitcoin blockchain to authenticate online IDs.

Essentially, ION will use the same logic as Bitcoin’s transaction layers to validate a user’s identity. According to ION, all the IDs will be tied to Bitcoin’s blockchain using the InterPlanetary File System (IPFS) protocol, and nodes will be able to process 10,000 ID requests in a single transaction.

Logging into a variety of online platforms, including social media, or even buying tickets online, could be made simpler by the verification provided by a users’ DID.
Users can also use a DID as digital proof to represent any verifiable assertion, ranging from diplomas to membership cards.

However, unlike traditional usernames and email addresses, DIDs will be owned and controlled by the users themselves, existing independently of an external organization or third party.

Are decentralized IDs the future?? 

Microsoft’s ION has attracted contributions from Bitcoin and crypto mainstays including Casa, ConsenSys, Gemini, BitPay and Protocol Labs, as well as a hand from the teams at Cloudflare, Spruce and others. 

ION has also worked with the Transmute and SecureKey teams who are building their own DID networks.

Blockchain Commons head and crypto veteran Christopher Allen told CoinDesk in 2019 that Microsoft embracing Bitcoin’s properties for DIDs is “a step in the right direction.”

“You could have a service that is in the cloud hosted by Microsoft Azure, but is absolutely secure because everything in it is encrypted with your keys that you control and everything that run under your authority, even though it’s in the cloud,” Allen said.