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1. Abstract of Vitalik et al.
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1.1 Limitations at the beginning of the establishment of Web3
In less than ten years, Web3 has created a huge financial empire. This achievement has attracted the attention of the world. Even Facebook has participated in this financial feast in the form of all in. The foundational elements of the encryption and economic fields bring a rich, open and diverse ecosystem to financial transactions. But there is a contradiction in this process. The economic value of financial transactions is determined by peoples social relationships in real life, which means that its internal operation logic is not perfect or even complete. It is precisely because Web3 lacks the basic elements that represent social identity that it fundamentally relies on the centralized Web2 structure that it seeks to transcend, which is very limited.
This dependence is also evident in specific applications:
While NFTs are traded through decentralized platforms such as Opensea, many NFT artists will promote through centralized platforms such as Twitter to prove their authenticity to people and achieve the purpose of promotion
Various decentralized projects often rely on Web2 infrastructure to implement voting
Many Web3 players rely on hosted wallets managed by centralized entities like Coinbase or Binance
In addition, due to the lack of native Web3 identity, todays DeFi ecosystem cannot support activities that are prevalent in the real economy, such as equal mortgage loans or even ultra-low mortgage loans (currently encrypted loan platforms generally only support over-collateralization) or signing contracts such as apartment leases . Here we try to break through these limitations through soulbound tokens (soulbound tokens, SBTs, which is DID decentralized identity). Beyond that, through Web3 social identity, enormous progress can be made on broader long-term issues of wealth concentration and governance vulnerability to financial attacks, while spurring a surge in political, economic, and social applications of web3. We refer to these use cases and the richer diverse ecosystem they enable as the Decentralized Society (DeSoc).secondary title
1.2 Elements and vision of DeSoc
First of all, we should understand the basic elements of DeSoc. It (“soul binding” Token, SBTs) revolves around non-transferable accounts (or wallets) held by people, representing commitments, certificates and relationships. This Token is like An extended resume. This kind of thing can be simply understood as our ID card. With an ID card, we can pay social security, bind bank cards, etc. It is very difficult to achieve without an ID card or a legally recognized identity, and the current web3 is in this dilemma without identity proof. Here, the thing that proves identity is called soul, and the Token held by the account is called soul token (SBTs).
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1.3 Related Examples
Art and the soul
Artists can connect their works with themselves through their soul. When issuing tradable NFTs, artists can issue NFTs from their souls. The more SBTs an artists soul carries, the easier it is for buyers to identify that the soul belongs to the artist, and thus confirm the authenticity of the NFT. Artists can go a step further by posting a linked SBTs in their soul, proving that a certain NFT is a member of that collection. Souls will thus create a reliable, on-chain way of transacting and identifying. Obviously, there are still many real-world applications, and the example of NFT artists is only the most representative one. In fact, in addition to the web3 field, it can also solve some practical problems, such as intellectual property rights, judging the authenticity of judicial documents, etc. After all, as deepfake technology advances, direct human and algorithmic checks will become less and less able to detect authenticity. While the addition of blockchain allows us to trace when a particular work was made, SBTs will allow us to trace the social provenance of related content, providing us with rich social context into the soul of the person who posted the work— A combination of their memberships, relationships, credentials. In this way high imitation can be easily identified.
Soul Airdrop
Before explaining the soul airdrop, we need to understand what the airdrop is, and what is the meaning of the airdrop? The airdrop in the blockchain field is a large-scale distribution of digital currency to some existing digital currency wallets through blockchain technology, such as Ethereum, Bitcoin, and EOS.IO wallets. Simply put, it is the process of distributing money to the majority of netizens.
When faced with airdrops, people will have four behaviors:
(1) Search related content online
(2) Chat with friends about relevant content, so that friends know the relevant information
(3) Crazy registration of accounts before or after to get airdrops
(4) Directly ignore
Airdrop itself is a very popular marketing strategy, not a so-called charity. Therefore, in the above cases, (3) and (4) are invalid airdrops, which cannot bring actual benefits or publicity effects . And the third one is the most harmful one, which is often called a witch attack. In order to avoid Article 3, project parties often set up many airdrop restrictions, but obviously it cannot be completely avoided. The above problems can be effectively solved through DID, because the project party can conduct airdrops based on DID, which can effectively improve the precision and accuracy of delivery.
There are many related examples in the paper, so I won’t list them here. If you are interested, you can click on the original text for detailed understanding:https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4105763
Obviously, the two so-called related examples above are still relatively idealized concepts.secondary title
1.4 Conclusion
Through this article, you can foresee the bright future of DeSoc, but at the same time, you need to realize that DID is only a small step in this long journey. In addition, the scenarios described above are just DeSocs enhancements to existing projects and applications, but they do not involve descriptions such as physics, politics, society, and their complex relationships with the real world, which actually occupy our real life. A large proportion. All of which suggests that the lofty ideals pictured above may only be the “rudiments” of what DeSoc will eventually look like.first level title
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2.1 Web2.0 Traditional Social Disadvantages
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2.2 SocialFi is a necessary component of Web3.0
The emergence of SocialFi is a necessary product to combat the disadvantages of traditional social platforms. Social platforms in the Web2.0 era are controlled by major operating giants, obtaining commercial value from user data and ignoring users feelings. SocialFi is based on blockchain technology. The anonymity of user identity information helps to protect privacy and security, and is more conducive to solving the problem of user data confirmation and decentralization.
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2.3 Online Data Analysis
According to Zippas statistics and sources of trading platforms and wallets, the global cryptocurrency user base increased by nearly 190% in 2018-2020, with further acceleration in 2021. The increase in data may be due to the increase in the number of accounts and the improvement of identification, as well as the number of users brought by the rise in popularity in 2021 when companies such as Tesla and Mastercard announced their entry into the cryptocurrency world. The following figure shows the trend of Web3.0 in recent years:
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3.1 ENS
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This is often implemented in registries and resolvers:
The ENS registry consists of a smart contract that maintains a list of all domains and subdomains and stores three key pieces of information about all domains and subdomains:
domain owner
domain resolver
The cache time of all records under the domain
The role of the ENS registry is simply to map from a name to the resolver responsible for it. Resolvers are responsible for converting names into addresses. Any contract with relevant functions can be used as a parser in ENS.
There are two steps to resolving a name in ENS: first, ask the registry which resolver is responsible for that name, and second, ask that resolver to answer the query.
For example, we try to find"foo. eth"The Ethereum address pointed to. First, we ask the registry which resolver is responsible for foo.eth. Then, we query the resolver for foo.eth"the address of.
Data (as of 2022-05-23)
Discord attention: 40,000+
Twitter followers: 183,000
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3.2 Bright ID
BrightID is an identity system for Web3.0 users, developed based on Ethereum, it is a system completely independent of traditional and Internet identity authentication. Generally used for DAPP user verification; activity verification; reputation building, etc.
Has the following characteristics:
No threshold: Anyone has the right to own Bright ID.
Privacy: Bright ID will not request or capture any personal privacy information from users.
Open source: public product, completely free and open source.
How it works and verifies
BrightID needs to pass the audit through face and multi-person authentication. The certification is combined with non-private information channels such as off-chain meeting video, and adopts the form of video conference. The above six verification officers are responsible for hosting the verification meeting and conducting the verification work. The specific time calendar of the verification meeting can be viewed on the BrightID official website.
related data
MetaCartel is a decentralized community of software engineers, entrepreneurs, and Ethereum enthusiasts. They have more than 600 members worldwide, who have extensive field experience and professional skills. Has provided early funding for many of the most popular emerging projects in this space: Mintbase; Known Origin; Kickback; RocketNFT; Gelato Finance, etc.
Data analysis (until 2022-05-23)
Twitter followers: 13.2K
APP integration: 13 models
Bright ID users: 57K+
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3.3 MetaMask
MetaMask, or the little fox wallet as it is often called, has increasingly become an indispensable tool in the encryption circle. Your wallet address can represent your personal identity on the chain to a certain extent.
MetaMask is a tool wallet that can be accessed through a web2 Internet browser and interacts with the Ethereum network with a low threshold. It is currently the only product of Consensys facing end users. It is one of the earliest wallets in Ethereum and currently the wallet with the largest number of users. Started in 2015, it has long been known to the public as a web-based, free, and semi-official wallet, and is a non-custodial wallet. With the upsurge of Defi applications in 2020 and the hot market effect of NFT in 2021, the number of MetaMask users has grown rapidly. In 2020, a new mobile client and transaction function (named Swap) will be added. In May 2021, the MetaMask institutional version will be launched, allowing institutional users to combine MetaMask with institutional-level hosting, facilitating workflow management, and easy reporting.
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MetaMask is now compatible with most blockchain network Dapps (including Ethereum, Binance, Polygon), and can integrate custody solutions to manage secret key storage and multi-signature approval. The team is also gradually optimizing the product itself, simplifying the transaction process, reducing transaction costs, signing procedures, etc. And gradually improve its compliance capabilities, so that high-risk assessments can be performed in the wallet, and decentralized and anonymous transactions can be safely performed. For a large number of users who choose MetaMask as the first step into Web3, the team not only polishes the product, but also improves the security performance and user-friendliness of the wallet itself. In the face of the rapidly developing cryptocurrency industry, the surge in usage demand and cross-network demand cannot be ignored.
related data(until 2022-05-23)
Financing status:
Financing status:Other data:
Other data:According to public data, as of now, the monthly active users of MetaMask have reached 30 million. At its peak, the active addresses of the entire Ethereum network were only about 8 million. It is not difficult to see that the number of monthly active users of Meta Wallet far exceeds this, which also confirms that MetaMask Wallet has now become the first choice for a large amount of encryption.
As of March 2022, more than 1,000,000 MetaMask plugins have been downloaded. Currently, the daily active users are around 6k-8k, and the daily new users exceed 2K+. At present, the number of cryptocurrency wallet users has exceeded 80 million. Regarding some maintenance issues, the team has encountered difficult situations.
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3.4 CyberConnect
Cyberconnect aims to solve the social graph (Social Graph) redistribution problem. This problem is actually easy to explain. It means that the information of various platforms in Web2.0 cannot communicate with each other, resulting in waste of duplicate resources and difficulty in finding all kinds of like-minded users. The graph is relatively simple.
The connotation or essence of Cyberconnect is also very simple (the relationship between users is not only two-way or three-way, but also a variety of cross-over and overlapping mixed network relationships) such as A itself, users who follow A, and follow Users of A make different connection combinations to form a unique graph, which proves the users social network, and from these people who are connected with user A, weaving again will form a new graph. In this way, users with the same hobbies in the online world, game players, buyers and sellers in commodity trade, etc. gradually become clear through the social graph.technology
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About data and storage: The IPFS and license-free protocol Ceramic construction used in CyberConnect social graph data storage, China Unicom Ceramic blockchain anchoring and custom data fixation services, can ensure long-term storage of data on the CyberConnect chain. (Using the Ceramic DID method) Regarding how to integrate user data on different platforms, it is necessary to adopt the Ceramic identity protocol IDX, which provides a unified interface for developers to query these data analysis within CyberConnect, and CyberConnect will also give DID in turn. On-chain systems provide more identity data.
Integration with other projects: At the same time, CyberConnect will also integrate with other Web3 projects to obtain information, such as NFT platform Foundation and Rarible, etc. In fact, the most important point is to allow players to participate in different types of ecological applications through a unified identity. Web2 Link enables on-chain and off-chain data to be combined into a more powerful decentralized data provider.
related data
Number of Twitter Followers: 57,7k+
Number of ecological projects: 30+
Settled users:
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Social icons are also one of the core application scenarios of DID. After all, the importance of identity increases proportionally with the improvement of social functions. Although Cyberconnect has been connected to Solana, Ethereum, and Binance network chains, in terms of user experience, the Ethereum network chain has relatively complete functions and smooth operation, but some operating functions are still in the development stage on Solana, which is not only easy to use on the network It causes congestion and requires the use of different wallet plug-ins, which reduces the user experience.
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3.5 Mirror
When it comes to a decentralized writing platform, most blockchain users will blurt out “Mirror”. Its platform was valued at US$100 million by Union Square Venture Capital and received US$10 million in investment less than a year after its establishment. As a representative of the decentralized writing platform track - what decentralized features and functions does Mirror rely on to top the throne?
Function introduction
The biggest difference between Mirror and centralized writing platforms is that it has the features and functions of encrypted blockchain products. Participating users do not need to register accounts through centralized authentication methods such as email accounts, mobile phone numbers, and social accounts. They only need to bind their own wallet addresses starting with 0x to generate a unique author column, similar to the one mentioned above. And the ENS (Ethereum domain name). For some creators, the contact with the outside world is only connected by a string of small characters, which perfectly integrates the concept of decentralized identity.
In addition, creators can publish articles/create pictures and other works on the Mirror platform. Each publicly released work is not stored on a centralized server, but is stored on the chain through the blockchain storage project Arweave. Save, generate a hash value record after the user encrypts the signature, and permanently save the work on the blockchain. Mirror also supports creators to cast their own works into NFTs, so that content works that have no marginal cost and can be copied infinitely are scarce and thus endowed with value. Not only can it not be copied or modified by others, but it can also be sold in major NFT markets.
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Mirror uses two types of Web3 components when saving user articles, one is Arweave for permanent storage of articles, and the other is the Ethereum mainnet, an NFT casting platform for confirming and trading articles.
Mirrors storage component - Arweave, is a public chain that optimizes the underlying performance for storage, so the cost for users to store data on the Arweave chain is greatly reduced compared to other smart contract public chain platforms. At the same time, the characteristics of on-chain storage guarantee the permanence of data stored on Arweave. Therefore, the storage mode based on Arweave is often classified as permanent storage. When the creator saves the modification of the article, Mirror will automatically store the new article on the chain for a second time in the background.
Mirror rights confirmation components, while storing, usually require another set of Web3 components to confirm the rights of the stored content, that is, to cast the content into an asset in NFT format. But this step is to confirm the rights in the form of NFT on the Ethereum network, and the cost is borne by the creator.
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3.6 Project Galaxy
The vision of Project Galaxy is to build the largest Web3 credential data network, build an open collaborative data aggregation infrastructure, and help developers and project parties build better products and communities. The project party creates and rewards NFTs for users on the Project Galaxy platform. Users complete the tasks of the project party, such as performing specific interactions on the chain, attending meetings, following Twitter, joining the Discord community, submitting questionnaires, participating in tests, etc. to obtain NFTs .
technology:
Project Galaxy currently supports two ways to provide data credentials GraphQL and REST API. There are two roles on Galaxy, data contributor and consumer. Data contributors can contribute on-chain data in the form of subgraph queries or static snapshots, while off-chain, Galaxy also integrates information sources, such as Twitter and GitHub.
Data users use Application module, Credential Oracle Engine, and Credential API to use data in three ways. And it is paid using Galaxys token $GAL, so data contributors can be incentivized.
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Project parties that have settled in: 400+
Galaxy ID users: 1.7 million+
Twitter followers: 300,000+
Financing status: Seed round financing in May 2021, $10 million financing in January 2022 led by Multicoin Capital and Dragonfly Capital, with participation from multiple institutions**. **Following in February, the public offering on the CoinList platform received 15 million US dollars.
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4. The Prospect of New Social Networking
The original carrier and the future scene?
The vast majority of users are most familiar with the practical application of the DID concept should be the blockchain wallet. For example, Metamask is the entry point for users to access the entire blockchain, which has privacy, security, and untraceability. This is the initial application result of the DID track, but its shortcomings are also obvious. The registration of wallet addresses lacks uniqueness, and one person can register a large number of worthless wallets. Secondly, large wallets can only show that tokens are difficult to display assets that are bound to be popular in the future, such as NFT and proof of participation, not to mention the paperless proof that SBT enjoys. This is the limitation of the wallet. The third wallet cannot configure the programmable properties of assets, and cannot restrict others from viewing wallet assets, resulting in hacker attacks. However, the practice of the concept is in the process of continuous improvement. Now there are decentralized identity applications that can display NFT and Proof of Participation (POA), and there are also privacy tracks for wallets and other DID applications that enable functions such as token privacy and asset visualization. It is expected that in the near future All blockchain track applications can bind user DIDs, which can record user equal mortgages, contract signings, participation certificates and hash parameters, and other non-tamperable data, potentially increasing the value of a single users DID
From a structural and theoretical point of view, places with social connections pay more attention to identity characteristics, so from a fundamental point of view, SocialFi is the initial track to realize this concept. Only when users try and participate can they understand DID in essence. In the future decentralized social field, look for users with the same ideas to build a harmonious relationship, quickly transfer and integrate identity characteristics through emerging matching technologies, and quickly sort out user hobbies and social circles, It can greatly reduce fraudulent activities on the Internet and improve the efficiency of social communication.
How to evaluate user DID value empowerment?
In the future, the value of the DID account will be evaluated based on the total number of internal assets and distribution ratios, such as cryptocurrency, NFT, proof of participation, etc., as well as personal identity information verification, interaction with other users, and additional attribute evaluations such as comments and messages. The last is the screening mechanism and membership evaluation between projects, such as users who have certain NFTs or certificates to obtain corresponding airdrop rewards, qualifications to participate in tests, etc., which further enrich the overall value attributes of DID.
For the current market, there are still no hot projects in the DID infrastructure track that can lead the upsurge of the track. For example, the popularity of DeFi is led by Uniswap. The former of GameFi is related to Axie, and the latter is led by StepN again, so expand Potential user groups also need to be implemented in actual specific projects. A single feasible concept cannot attract enough investors.
The DID track itself does not have the ability to actively produce value. Creating a wallet address does not mean that the wallet has money, but from another perspective, DID is also the infrastructure that is most compatible with all fields in the blockchain, and its value determines a great extent. Based on the compatibility with other project applications, after all, DID belongs to the back-end program and does not conflict with personalized applications.
Trend Forecast
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5. Possible challenges in the development of DID and SocialFi
The DID track and SocialFi are currently in the early stage of exploration, with huge development prospects and hidden opportunities that have not yet been discovered, but at the same time there are many problems waiting for Web3 builders to challenge:
The concept of non-transferability presents its own technical challenges, and there is an insurmountable barrier between the need to limit or prevent transfers and the blockchain ecosystem, as almost all project standards currently revolve around the largest Designed for transferability.
Privacy is an important prerequisite for such ecosystems to function well. In many cases, users do not wish to reveal all their identifying information. How to disclose the decentralized identity information to the necessary objects only when necessary is also a major technical challenge.
References
References
Investment Risk and Disclaimer
The above content analysis only provides reference information, and does not serve as the basis for investment decisions. Please do not make any investment decisions based on this report. The report author is not responsible for the users investment results.
Reports have been prepared as of the date indicated and as subsequent market or economic conditions may change, the contents of the report do not necessarily reflect these changes. Graphs, charts and other visual aids are provided for informational purposes only. None of these graphs, charts or visual aids should be used to make investment decisions. It is not intended to assist anyone in making an investment decision, and no graph, chart or other visual aid can capture all of the factors and variables necessary to make such a decision.
Certain statements involved in this article may be assumptions about future expectations and other forward-looking opinions, and known and unknown risks and uncertainties may cause actual results, performance or events to be different from opinions and assumptions in the statements There are substantial differences.
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