A few years ago, anonymity was the mascot for digital currencies. But the same anonymity has helped many hackers exploit the system. It has also led to an erosion of trust. Users seldom have any control over their data and privacy, leading to a bad experience. To encourage users to switch from Web2 to Web3, we need secure identities and greater decentralized control for the end user.
What are DIDs?
DIDs stand for Decentralized Identities. It establishes your identity on Web3, which helps you secure yourself from fraudulent activities like impersonation, mistaken identity, or identity theft.
DIDs are non-transferrable tokens that act as your ID card on Web3. They include public keys used for authentication. Public keys are similar to crypto addresses that you share.
Why is DIDs Essential?
Decentralized Identities will not only help avoid identity fraud in Web2 but will also help make Web3 more secure. It will give legal proof for payment in crypto.
Proof of Payment in Web3
DIDs can act to confirm identity and Proof of Payment when you are making cryptocurrency payments. Currently, all crypto payments are anonymous, meaning you have no record that can prove if you paid someone. Suppose someone denies you made the payment and deleted the wallet used to receive such payment. In that case, you have no legal proof that you paid that person. Further, there are genuine cases of mistaken payments where addresses needed to be copied properly, and the entire sum went to someone else.
Solving False Identities in both Web2 and Web3
If you know about the $7.99 Twitter verification, you also should know how people used that verification procedure to pose as famous people and began demanding money. Such things are very common in Web3 and show how easily you can lose money. Here are a few examples.
- A fake account posed as Nintendo posted a picture of Mario making obscene gestures.
- Elon Musk himself was impersonated.
- People also posed as verified officials from SpaceX and Tesla.
DIDs will help establish real and unique identities.
Safety from Scammers
In 2021 alone, Web3 scammers took a record $14 Billion, according to a report by Chain analysis. Not only do these scammers loot people’s hard-earned money, but they also scare multiple others from adopting Web3. Further, due to these scams, governments and central authorities look at Web3 through the lens of suspicion. The overall damage is often irreparable.
Greater DID adoption would help easily verify if a person is trustable or a scammer. Logically scammers will choose not to verify themselves to avoid being caught.
How to secure yourself in Web3?
Cryptocurrencies and DeFi are definitely going to replace conventional finance because of their speed, flexibility, and ability to process cheap transactions. One cannot simply abandon them. But, you can easily secure yourself from identity crimes in Web3.
ShareRing, for example, is a platform that helps you establish your Web3 identity so that others can easily verify your credentials. Further, professionals who need to pay others using cryptocurrencies can now ask them to get verified on ShareRing. Doing so will help them get a legal record of payment. Payments will be made to Soulbound Token’s attached address and can be easily verified.
Using ShareRing is an easy task. You can download the app for Android and iOS.
Is ShareRing safe?
Yes, Share Ring stores your data in a safe encrypted way in the ShareRing Vault. It can be accessed through your device. ShareRing avoids cloud or centralized storage, meaning you are the master of your own data.
You can also use the ShareRing ID to access events in Metaverses. There is also an event calendar that keeps you updated with the latest happenings in Web3.
Security comes from established trust. In Web3, this trust factor is largely missing. ShareRing is an example of a solution that helps create Web3 identities that power the decentralized world for people. Further, being decentralized, no one can change these credentials except you. Such identities invoke greater trust.