MicroStrategy plans to launch a decentralized identity solution on the Bitcoin (BTC) blockchain that uses ordinal-based inscription technology to store and retrieve information.
MicroStrategy Executive Chairman Michael Saylor announced the solution, dubbed “MicroStrategy Orange,” at the company’s Enterprise Bitcoin Conference on May 1.
Saylor explained that the solution aims to provide trustless, immutable and persistent decentralized identity by using only the public Bitcoin blockchain.
“The goal of this solution is to … build a decentralized identity system that is trustless, immutable, and long-term persistent, using only the public Bitcoin blockchain as the data source,” MicroStrategy described in a draft of the solution that has not yet been authorized and posted on GitHub.
Decentralized identifiers (DIDs) will provide anonymity, similar to how real-world identity information will not be directly linked to Bitcoin addresses and transactions.
MicroStrategy Orange consists of several components: Orange Services, Orange SDK, and Orange Applications.
Orange services enable users to issue DIDs to their personnel and deploy applications. Meanwhile, Orange SDK and Orange applications provide the tools needed for customization and integration on a variety of devices.
MicroStrategy has developed an application called Orange For Outlook that integrates digital signature technology into emails, allowing email recipients to verify the true identity of the email sender.
Once a user accepts the invitation email signed by MicroStrategy’s DID, they will begin a setup process that generates a unique decentralized identifier (DID) and a pair of public and private keys for each user.
The user’s decentralized identifier (DID) and public key are stored on the Bitcoin blockchain, and the user is then able to invite their team members to create their own digital identity.
Looking ahead, MicroStrategy plans to expand the capabilities of its Orange application to other messaging platforms, social networks, and multiple application areas such as e-commerce, enterprise and fintech.
Previous Bitcoin-based identity solutions
MicroStrategy is not the first company to consider using Bitcoin for potential identity solutions. Back in 2016, a project called BitID was launched to simplify the identity verification process for online platforms and ensure that users’ privacy is protected. However, the project has now ceased operations.
In addition, ION (Identity Overlay Network) is a self-sovereign identity system that runs on a Sidetree-based DID (decentralized identity) network and integrates the Bitcoin blockchain and IPFS (Interplanetary File System).
Other blockchain networks, such as Worldcoin, are adopting similar strategies to build a global digital identity and financial network.
Ecuador’s Sistema de Dinero Electrónico (Electronic Money System) was also noteworthy. The country launched a digital currency linked to a government-issued digital identity system, allowing citizens to access and spend the currency using their ID documents. However, this measure was eventually phased out due to criticism from the state bank.
MicroStrategy's announcement comes shortly after the company reported a net loss of $53.1 million in the first quarter ended April 30.
It is worth noting that this loss figure does not reflect the substantial increase in the market value of the company's bitcoin holdings. MicroStrategy currently holds 214,400 bitcoins, which have increased in value by 65% in a quarter, and the total value of these bitcoins reached $15.2 billion based on the market price at the time. #MicroStrateg #去中心化身份
