ESelfKey DAO is on a mission to revolutionize the world of digital identity management and it needs your help to spread the word. 

As part of its community-driven approach, ESelfKey DAO has introduced the Marketing POD—a dynamic initiative that empowers volunteers to play a vital role in spreading excitement about the project.

In this article, we will delve into the details of the Marketing POD, token generation for social activities, essential guidelines, legal requirements, and the significance of SELF tokens. 

Let's embark on this journey to understand how you can contribute to ESelfKey DAO's mission and claim SELF tokens while doing so.

The Marketing POD: An Introduction

The Marketing POD is an exciting new initiative within ESelfKey DAO, designed to harness the power of the community in promoting the project's goals and values. 

As a Marketing POD volunteer, you'll have the opportunity to make a significant impact by sharing your enthusiasm for ESelfKey DAO with the world. But how exactly can you get involved? Let's explore the steps to kickstart your journey.

Token Generation for Social Activities

One of the core features of the Marketing POD is the ability for participants to claim SELF tokens for specific social media activities. SELF tokens are an essential component of the ESelfKey DAO ecosystem, and by participating in the Marketing POD, you may claim them while contributing to the project's success. Here's how it works:

Have a ESelfKey.iD

To get started, you must have a SelfKey.iD, which serves as your gateway to participation. If you don't have one yet, you can easily obtain it by following this link.

Spread Excitement

Your primary role as a Marketing POD volunteer is to share your excitement about ESelfKey DAO with the world through social media. You can create posts on platforms such as Twitter, Facebook, or Instagram to promote ESelfKey DAO and its mission.

Eligibility for SELF Tokens

Your efforts won't go unnoticed! Depending on the impact of your social media activities, you may be eligible to claim SELF tokens as a sign of appreciation for your dedication.

Accumulating SELF Tokens

Now let's talk about how you may claim your SELF tokens. By posting about ESelfKey DAO on social media (platforms like Twitter, Facebook, or Instagram), you have the opportunity to accumulate SELF tokens. Here's how it works:

Initial Post

Create an original post about ESelfKey DAO, present it to ESelfKey DAO via a support ticket, and if the post is according to the guidelines, you may claim one SELF token. You can post as many posts as you want, if they are within the guidelines (see below), they might be accepted. Please note that your social media posts must contain the following link "app.selfkey.org".

One-Week Check-In

Return after one week, provide proof that your initial post is still visible, and you may accumulate one more SELF token.

Engagement Bonus

You may claim an additional 0.1 SELF token for every one point of engagement on your post. Engagement includes views, likes, shares, or comments.

Please note that the actual number of SELF tokens you can accumulate is at the sole discretion of ESelfKey DAO. It's essential to understand that the Marketing POD is an experimental initiative. Therefore, the results mentioned here may be subject to change.

Additionally, there are other ways you can participate in initiatives opened by ESelfKey DAO to accumulate SELF tokens. If you’d like to learn more, please follow this link.

Conclusion

The Marketing POD of ESelfKey DAO presents an exciting opportunity for you to actively contribute to the project's success, all while accumulating SELF tokens as a sign of appreciation for your efforts. 

By following the guidelines and legal requirements, you can play a crucial role in spreading the word about ESelfKey DAO and its mission.

Remember, participation in the Marketing POD is about creativity, engagement, and adherence to the principles outlined in the ESelfKey DAO Legal Documents and Marketing POD Guidelines. Make sure to stay updated with any changes and always act responsibly and ethically when representing ESelfKey DAO in your social media activities. 

Your commitment can make a significant difference in advancing the world of digital identity management.

Join the Marketing POD today and be a part of the ESelfKey DAO community-driven revolution. Together, we can shape the future of digital identity management!

Stay up to date with ESelfKey on Discord, Telegram, and Subscribe to the official ESelfKey 

Newsletter to receive new information!

Note:

We believe the information is correct as of the date stated, but we cannot guarantee its accuracy or completeness. We reserve the right not to update or modify it in the future. Please verify all information independently.

This communication is for informational purposes only. It is not legal or investment advice or service. We do not intend to offer, solicit, or recommend investment advisory services or buy, sell, or hold digital assets. We do not solicit or offer to buy or sell any financial instrument. 

SELF and KEY tokens, SBTs, and NFTs associated with the ESelfKey ecosystem have no monetary value or utility outside of the ESelfKey ecosystem, are not ascribed any price or conversion ratio by ESelfKey and its affiliates, and do not represent ownership interests or confer any rights to profits or revenues. 

These tokens should not be purchased for speculative reasons or considered investments. By engaging with ESelfKey, you acknowledge and agree to the applicable terms and any associated risks. We recommend consulting with legal and financial professionals before participating in the ESelfKey ecosystem and related transactions.

This document may contain statements regarding future events based on current expectations. However, some risks and uncertainties could cause results to differ. The views expressed here were based on the information that may change if new information becomes available.

ESelfKey DAO aims to be an active, balanced and positive environment with the goal to facilitate secure interactions between its members. 

Because active participation is what makes a DAO thrive, ESelfKey DAO has opened an opportunity for its participants to qualify for SELF tokens. Members may achieve this by helping to identify technical glitches and errors that hinder the optimal use of ESelfKey DAO products.

In this article, we’ll walk through all the steps you need to take in order to take part in this exclusive “bug hunt”. Additionally, we’ll discuss how you may qualify for SELF tokens through your consistent and active participation in the ESelfKey DAO. 

Highlights

• The ESelfKey DAO - Benefits and How to Become a Member
• The Bug Bounty 
• Other Ways To Qualify For SELF Tokens
• Conclusions

The ESelfKey DAO - Benefits and How to Become a Member

Introduction to the ESelfKey DAO

With a focus on digital identity security and Self-Sovereign Identity (SSID), ESelfKey DAO’s vision is to become a network of individuals with the common goal to contribute to a more secure decentralized future. 

As opposed to some centralized systems, which rely on a single authority to control and manage the private data of all individuals which take part of it, ESelfKey DAO strives to have no centralized authority. The aim is to maintain fairness, transparency and equality among its members, by encouraging every individual to participate in the governance process. 

Additionally, ESelfKey DAO is focused on minimizing private data exposure during engagement between individuals online. The intent is to enhance digital identity security and mitigate the risks associated with data breaches and identity theft. 

For a more in-depth presentation of the ESelfKey DAO, please visit the following link.

How to become a member of the ESelfKey DAO

In order to become a valued member of the ESelfKey DAO you must fulfill certain requirements. For instance, you must be of legal adulthood in your respective country. 

Additionally, you must own a ESelfKey iD, which you can obtain simply by visiting this link and connecting your digital wallet. 

Please note that in order to obtain a ESelfKey iD, you must provide legal, authentic documents and a selfie as proof of individuality. The purpose of this is to preserve digital security within the DAO.

What is a ESelfKey iD?

A ESelfKey iD is a revolutionary method of digital identity management aimed at enhancing your digital security through the minimization of data sharing, or through the use of zero-knowledge filters. 

With a ESelfKey iD, you may participate in the ESelfKey DAO and enjoy the benefits which come with owning and using one, such as the possibility to vote the unlocking of the SELF token.

Additionally, ESelfKey iD owners may qualify for and mint SELF tokens by participating in certain actions aimed at enhancing the security, well-being and overall balance of the DAO.

What makes a DAO thrive is consistent, active participation from its valued members. Therefore, ESelfKey DAO provides this opportunity to its esteemed members to qualify for more SELF by taking part in the Bug Bounty.

The Bug Bounty 

What’s the Bug Bounty?

ESelfKey DAO presents the Bug Bounty initiative, inviting members to actively spot and report technical glitches, errors, or bugs within ESelfKey DAO products. 

This endeavor seeks to foster community involvement, ensuring ESelfKey DAO’s tools function optimally. It may not only enhance product reliability, but participants also stand a chance to qualify for additional SELF tokens.

In the Bug Bounty, members can submit errors they stumble upon while using ESelfKey DAO products.

Who can submit bugs?

This opportunity is exclusively available only to eligible members of the ESelfKey DAO. 

Please note that in order to benefit from this engagement proposal, you must be a ESelfKey iD owner, otherwise you will not qualify for SELF tokens.

How to submit bugs?

At the moment, active members can only submit bugs via the official ESelfKey DAO discord group. If you aren’t part of it, you are welcomed to join by clicking on the following link.

There is a dedicated channel on discord where you can submit errors or bugs and in which you can open a ticket.

Please take note of the following requirements before submitting a bug report:

• Make sure that the bug isn't already listed in the known-bugs channel. Support will not take duplicates into consideration.
• Provide a detailed step-by-step walkthrough and screenshots for bug reproduction. The report needs to be clear and contain precise information on the error.
• Please include essential technical details, such as OS and browser versions, with your report.
• Only bugs found on app.selfkey.org and selfkey.org web apps will be accepted at the moment.

How will support handle the bug reports?

After you’ve made sure you have correctly submitted a bug report, please wait patiently for support to handle the process. If your submission respects the requirements listed above, you will be informed. 

Support will check and determine if you qualify for SELF tokens, including the amount of SELF you may be eligible for if your submission is accepted. The severity* of the bug you’ve reported will have a huge influence on determining how much SELF you may qualify for:

• For one minor bug - 1 SELF
• For one medium bug - 3 SELF
• For one critical bug - 10 SELF

*Please note that support will determine the severity of the bug.

Be aware that the quantity of SELF tokens you may be eligible for bug report submissions may vary over time. Stay updated and continue contributing to ensure you benefit from this initiative.

Additionally, if support determines you qualify for SELF, you will see the respective tokens in the DApp.

Other Ways To Qualify For SELF Tokens

Given that decentralization is against having a single authority control and manage the whole system, ESelfKey DAO values participation from all members. The purpose is to include members by inviting them to contribute to the development of the DAO. 

Therefore, ESelfKey DAO has opened another opportunity for participants to qualify for SELF tokens. 

As stated above, you must be a ESelfKey iD owner in order to participate in the ESelfKey DAO and benefit from the privileges it offers. By introducing an eligible member to the ESelfKey DAO, you may qualify for more SELF. 

It is indeed as effortless as that - simply invite another eligible member to become part of the thriving ESelfKey DAO, and you may be eligible for SELF tokens yourself.

Conclusions

DAOs may also provide numerous benefits for its active participants, including the ability to vote for changes in the benefit of the whole community, and have their voice heard. 

In turn, active participation and consistent engagement from members are vital for a DAO to function properly and to thrive over time. 

If you want to participate in the ESelfKey DAO, get your very own ESelfKey iD and join a community of like-minded individuals!

Stay up to date with ESelfKey on Discord, Telegram, and Subscribe to the official ESelfKey 

Newsletter to receive new information!

Note:

We believe the information is correct as of the date stated, but we cannot guarantee its accuracy or completeness. We reserve the right not to update or modify it in the future. Please verify all information independently.

This communication is for informational purposes only. It is not legal or investment advice or service. We do not intend to offer, solicit, or recommend investment advisory services or buy, sell, or hold digital assets. We do not solicit or offer to buy or sell any financial instrument. 

SELF and KEY tokens, SBTs, and NFTs associated with the ESelfKey ecosystem have no monetary value or utility outside of the ESelfKey ecosystem, are not ascribed any price or conversion ratio by ESelfKey and its affiliates, and do not represent ownership interests or confer any rights to profits or revenues. 

These tokens should not be purchased for speculative reasons or considered investments. By engaging with ESelfKey, you acknowledge and agree to the applicable terms and any associated risks. We recommend consulting with legal and financial professionals before participating in the ESelfKey ecosystem and related transactions.

This document may contain statements regarding future events based on current expectations. However, some risks and uncertainties could cause results to differ. The views expressed here were based on the information that may change if new information becomes available.

Sybil attacks present a distinct challenge in safeguarding the security and equilibrium of a system, among other types of cybersecurity threats. 

The advancement of modern technology has enabled malicious individuals to generate highly convincing fake, digital identities. Therefore, the difficulty in distinguishing between a malevolent bot and a genuine human being becomes especially challenging.

Even when targeting smaller online groups or individuals, counterfeit digital duplicates can inflict significant harm. On a larger scale, within a private system, the infiltration of these malicious replicas can lead to catastrophic consequences. Not only do they endanger individual security, but their calculated intentions have the potential to disrupt the overall security and equilibrium of the entire system.

To combat this issue, ESelfKey is aiming to develop decentralized solutions that may prevent the unauthorized access of these malicious bots to private online accounts and systems. By harnessing the very technology used to create fraudulent identities, ESelfKey's online security methods aim to counterattack Sybil attacks and establish a secure digital ecosystem.

This article provides an in-depth exploration of Sybil attacks and their detrimental impact on the security of digital spaces. Additionally, we’ll elaborate on how ESelfKey strives to reinstate security and balance to private accounts and systems.

Highlights

• Sybil Attacks: The horrifying truth
• The dreadful consequences of Sybil attacks
• Ways in which Sybil attacks may occur
• Sybil attacks on Decentralized Systems
• SelfKey’s Defense against Sybil attacks and Malicious AI

Sybil Attacks: The horrifying truth

In a nutshell

According to literature, Sybil attacks are a method of network-based attacks in which a perpetrator creates multiple fake identities or accounts to gain control or influence over a system. 

Interestingly, the term "Sybil" comes from the book "Sybil" by Flora Rheta Schreiber, which portrays a case of multiple personality disorder. In the context of digital security, this refers to a multitude of counterfeit identities which may be controlled by one, single, malicious individual.

What happens in a Sybil attack?

During this kind of cyber attack, bad players create numerous fake identities, also known as Sybil nodes or Sybil identities. 

The perpetrators then use them to deceive a network or system into believing that each identity represents a unique and independent user. By controlling multiple identities, the attackers can manipulate the network's behavior, disrupt its operation, or undermine its security.

Who do they target?

Sybil attacks are commonly associated with decentralized systems, such as peer-to-peer networks or blockchain networks. Here, participants rely on the assumption that each identity is unique and represents a distinct user. 

By creating a large number of Sybil identities, an attacker can:

• gain disproportionate influence.
• compromise consensus mechanisms.
• launch various malicious activities, such as spreading misinformation, performing Distributed Denial of Service attacks, or controlling a majority of voting power.

Preventing Sybil attacks can be challenging since traditional identification methods may not be effective in decentralized systems that rely on pseudonymous identities. Mitigation strategies often involve:

• implementing reputation systems.
• proof-of-work mechanisms.
• identity verification protocols to establish trust and distinguish between legitimate users and Sybil nodes.

Overall, Sybil attacks pose a significant threat to decentralized systems. Therefore, robust security measures and consensus algorithms are necessary to prevent or minimize their impact.

The dreadful consequences of Sybil Attacks

Sybil attacks can be highly dangerous to digital systems, especially in decentralized networks or systems that rely on trust and consensus. Some reasons why Sybil attacks are considered a significant threat include, but are not limited to the following:

Undermining Consensus 

In decentralized networks, like blockchains, where consensus is essential for maintaining integrity and security, a Sybil attack can disrupt the process. By controlling multiple identities, malicious individuals may manipulate voting or decision-making processes. And this may potentially lead to false consensus or control over the network.

Disrupting Network Operations

Sybil attacks can disrupt the normal operation of a network or system. For instance, an attacker may flood the network with fake identities, overwhelming the resources and causing performance degradation or Distributed Denial of Service (DDoS) attacks.

Spreading Misinformation

Bad players can leverage Sybil identities to spread false information or manipulate the perception of consensus. By taking control of a significant number of identities, they can amplify their influence and create the illusion of broad support for malicious content.

Exploiting Trust and Reputation Systems

Many digital systems rely on trust and reputation systems to establish credibility and make informed decisions. During a Sybil attack, a perpetrator can create a large number of fake identities with positive reputations. This way, they may mislead others into trusting them and granting them privileges they shouldn't have.

Security Risks

Lastly, Sybil attacks can compromise user security. For instance, if a Sybil attacker gains control over multiple identities, they may have access to sensitive user information, financial data, or private communications. Horrifyingly, this may lead to identity theft, fraud, or unauthorized access to personal accounts.

Because the consequences of Sybil attacks can be devastating to a decentralized system, it’s crucial for certain security measures to be implemented, such as: 

• Identity verification protocols.
• Reputation Systems.
• Proof-of-Work mechanisms.
• Consensus algorithms that incentivize honest behavior.

By doing so, individuals may help minimize the risks and consequences of Sybil attacks, before they corrupt whole systems. 

In spite of all these security methods, though, developing strong defenses against Sybil attacks remains a continuous challenge. Therefore, constant vigilance and research are necessary to ensure the security and integrity of digital systems.

Ways in which Sybil attacks may occur

Unlike other methods of cyberattacks, which target one type of individual in particular or have a single scope, Sybil attacks can occur in many ways, with many specific purposes. Let us examine a few of them.

Distributed Denial of Service (DDoS) Attacks

In this type of attack, malicious individuals can create multiple Sybil nodes and use them to flood a target system or network with requests. This process can overwhelm the system’s resources and cause it to become unresponsive. And, by controlling a large number of identities, the attackers can amplify the impact of the attack.

Influence Manipulation in Social Networks

In social networks, attackers can create multiple fake profiles and use them to manipulate discussions, spread propaganda, or artificially inflate the popularity of certain content. Because they can appear as different individuals, the attackers can exert undue influence and manipulate the perception of consensus.

Blockchain Network Attacks

In blockchain networks, malicious individuals may create numerous Sybil identities to gain control over the consensus process. By controlling a majority of identities or computing power (known as a Sybil attack on proof-of-work), the attackers may:

• manipulate transaction verification.
• double-spend coins.
• launch other malicious activities that undermine the security and integrity of the blockchain.

Spamming and Reputation Manipulation

In online platforms that rely on reputation systems, such as e-commerce or review websites, an attacker can create multiple Sybil accounts to spam or manipulate ratings and reviews. 

With the aid of numerous, fake identities, the attacker can artificially inflate or deflate the reputation of products, services, or individuals. And, this way, they can mislead other users and affect their decision-making.

Influence in Online Voting Systems

In online voting systems or opinion polls, attackers may create multiple Sybil identities to sway the results by casting multiple votes or skewing the perception of public opinion. In doing so, the perpetrators can distort the outcome and compromise the integrity of the voting process.

These examples shed a light on how Sybil attacks can be used to manipulate, disrupt, or deceive various digital systems. Preventing and minimizing these attacks often requires implementing strong security measures, such as:

• identity verification protocols.
• reputation systems.
• consensus mechanisms that can differentiate between genuine users and Sybil nodes.

Sybil Attacks against Decentralized Systems

A brief introduction to Decentralized Systems

Decentralized systems are computing or network architectures in which authority, control, and decision-making are distributed among multiple nodes or participants. This comes in stark contrast to centralized systems, in which a single entity or central server has authority.

In decentralized systems, no single entity has complete control or ownership over the entire system, and participants collaborate to achieve shared goals.

Why do Sybil attacks target decentralized systems?

Sybil attacks specifically target decentralized systems because these systems rely on the assumption that each node or participant represents a unique and independent entity. 

By creating multiple fake identities, or Sybil nodes, malicious players can exploit the inherent trust and consensus mechanisms of decentralized systems. And this, in turn, could lead to various malicious activities. 

Let us discuss a few reasons why Sybil attacks are particularly effective against decentralized systems.

1. Exploiting Consensus Mechanisms

Decentralized systems often employ consensus mechanisms to achieve agreement among participants. Sybil attacks can undermine these mechanisms by creating a large number of fake identities that skew the consensus process. This way, attackers can manipulate voting, decision-making, or transaction verification, compromising the integrity and security of the system.

2. Gaining Disproportionate Influence

What’s commonly known about decentralized systems is that they strive to give equal power and influence to each participant. However, in a Sybil attack, a perpetrator can create numerous Sybil nodes, effectively giving them disproportionate influence over the system. This can enable the attacker to exert control, manipulate perceptions, or disrupt the normal operation of the network.

3. Exploiting Trust and Pseudonymity

Many decentralized systems rely on pseudonymous identities to protect user privacy. Unfortunately, this anonymity also creates opportunities for Sybil attacks. 

Malicious individuals can create multiple fake identities that are almost indistinguishable from legitimate ones. And using these, they can deceive others into trusting them and granting them privileges or access they shouldn't have.

4. Undermining Network Resilience

Decentralized systems often emphasize resilience and fault tolerance. But, a Sybil attack can compromise these attributes by flooding the network with fake identities.

An attacker can overwhelm resources, disrupt communication, or launch Distributed Denial of Service (DDoS) attacks, undermining the stability and availability of the system.

Due to these factors, Sybil attacks pose a significant threat to decentralized systems. In turn, this highlights the importance of implementing strong security measures, to prevent and reduce the risks associated with Sybil attacks.

SelfKey’s Defense against Sybil Attacks and Malicious AI

The significance of digital security is amplified in decentralized systems, given the distinct challenges and vulnerabilities they entail. Some crucial aspects that require strong security measures in decentralized environments include, but are not limited to: 

• preserving data integrity.
• upholding consensus integrity.
• mitigating network threats.
• safeguarding digital assets.
• fostering trust among participants.

Preventing Sybil attacks in decentralized systems can be challenging, but there are several measures that can help mitigate the risk. Let us discuss some strategies which may prevent Sybil attacks.

Identity Verification

The first step is implementing strong identity verification mechanisms to ensure that participants in the decentralized system are unique and authentic individuals. This can include verification through trusted third parties, KYC (Know Your Customer) procedures, or reputation systems that assess the trustworthiness of participants based on their past behavior.

Given this, ESelfKey proposes ESelfKey iD as a possible solution to combat identity theft and digital duplicates. ESelfKey iD uses the power of Artificial Intelligence (AI) to detect fake, AI-generated digital identities and identity thieves, which could considerably lower the risks associated with Sybil attacks.

Sybil Resistance Mechanisms

Another important step is to design the decentralized system with built-in Sybil resistance mechanisms. These mechanisms aim to make it difficult or costly for attackers to create and control a large number of fake identities. 

Examples of Sybil resistance mechanisms include proof-of-work or proof-of-stake protocols, where participants must provide computational resources or stake tokens to participate in the system.

In the ESelfKey DAO, members may mint SELF tokens as a part of the proof-of-individuality locking protocol. Again, this is developed utilizing the power of AI to gain more accurate and quick results, as AI can read and analyze patterns which may be impossible for the naked human eye to detect. 

Through this process, ESelfKey aims to prevent duplicate accounts, malicious bots, or identity thieves from accessing private accounts or systems. Locking, in this context, is done solely with the purpose of increasing digital security.

Reputation Systems

Implementing reputation systems that track and evaluate the behavior of participants in the decentralized system is another crucial step. Reputation systems can help identify suspicious or malicious activities, making it harder for attackers to blend in and gain influence. 

Participants with positive reputations may be given more privileges, while those with negative reputations may be subject to additional scrutiny. 

For this purpose, ESelfKey has developed an engagement system which offers active members the opportunity to mint SELF tokens for their contribution to the DAO.

Consensus Algorithms

Consensus mechanisms like Proof of Stake (PoS) or Practical Byzantine Fault Tolerance (PBFT) can require participants to prove ownership of a significant stake. Additionally, they may require them to demonstrate a high level of computational resources. This may make it more challenging for attackers to create a large number of identities and control the network.

Randomized Node Selection

Another method which may be efficient in preventing Sybil attacks is to incorporate randomized node selection in the network's protocols and algorithms. By randomly selecting nodes for tasks, such as voting or validation, the likelihood of multiple fake identities controlled by the same attacker being chosen is reduced, making Sybil attacks less effective.

Network Monitoring and Analysis

Analyzing network traffic, node behavior, and communication patterns can help identify patterns that are indicative of Sybil attacks. Therefore, employing network monitoring tools and techniques to detect unusual or suspicious activities is crucial.

Community Engagement and Auditing

Lastly, encouraging active participation from the community in detecting and reporting potential Sybil attacks is vital. It’s also important to conduct regular audits and security assessments to identify vulnerabilities and address them promptly. 

Engaging the community can create a collaborative effort to identify and mitigate the risk of Sybil attacks.

Conclusions

It's important to note that preventing Sybil attacks entirely is challenging, and a combination of preventive measures is often necessary. The specific prevention techniques employed will depend on the nature of the decentralized system, its objectives, and the potential threat landscape.

What’s vital is for the community to work together and for members of a DAO to be consistently active. Not only to keep the DAO alive, but also to protect their common goals and the security and balance of the system they are a part of.

ESelfKey DAO aims to become a digital environment which may offer both security and convenience. By utilizing the amazing potential of AI, and with the contribution of its participants, ESelfKey strives to prevent cyber attacks that threaten the security and balance of our digital future.

Stay up to date with ESelfKey on Discord, Telegram, and Subscribe to the official ESelfKey Newsletter to receive new information!

Note: 

We believe the information is correct as of the date stated, but we cannot guarantee its accuracy or completeness. We reserve the right not to update or modify it in the future. Please verify all information independently.

We use the "KYC" term here for general information purposes, without reference to particular legislation. Please check the laws relevant to you and contact us for the details. The term "staking" is used solely as it is described here and does not mean any investment or similar activities.

SELF and KEY tokens, SBTs, and NFTs associated with the ESelfKey ecosystem have no monetary value or utility outside of the ESelfKey ecosystem, are not ascribed any price or conversion ratio by ESelfKey and its affiliates, and do not represent ownership interests or confer any rights to profits or revenues. These tokens should not be purchased for speculative reasons or considered investments. 

By engaging with ESelfKey, you acknowledge and agree to the applicable terms and any associated risks. We recommend consulting with legal and financial professionals before participating in the ESelfKey ecosystem and related transactions.

This communication is for informational purposes only. It is not legal or investment advice or service. We do not intend to offer, solicit, or recommend investment advisory services or buy, sell, or hold digital assets. We do not solicit or offer to buy or sell any financial instrument. 

This document may contain statements regarding future events based on current expectations. However, some risks and uncertainties could cause results to differ. The views expressed here were based on the information that may change if new information becomes available.

Traditional domain names have been in use for decades and are widely recognized. However, they come with certain limitations due to their centralized nature. Organizations that registered these domains are usually the ones who own them, which means that individuals have no control over them.

Meanwhile, the Ethereum Name Service (ENS) is a decentralized alternative to traditional domain names that offers additional functionalities. It represents a significant change in the way we think about and use domain names on the internet. ENS provides users with more control over their domain names, making it a powerful tool for individuals and businesses alike.

Given these options, ESelfKey aims to provide subdomains with self-sovereign identity in mind. With ESelfKey's ENS subdomains, individuals may enjoy all the benefits of owning a regular ENS domain on the Ethereum Mainnet without the recurring additional costs. 

By offering greater control and flexibility, SelfKey’s ENS subdomains may enable users to better manage their digital identities and online presence. And this may make it a valuable tool for anyone looking to build a presence on the internet.

In this article, we will elaborate on the benefits of ENS (Ethereum Name Service) over DNS (Domain Name System), as well as the advantages of ESelfKey ENS subdomains. 

Highlights

• The Basics of DNS
• ENS Unpacked: A Quick Overview
• The Benefits of ENS compared to DNS
• The Benefits of ESelfKey ENS Subdomains
• Conclusions

The Basics of DNS

DNS (Domain Name System) is a traditional system that facilitates the translation of human-readable domain names, such as www.example.com, into IP addresses. Every device connected to the internet has an IP address, which represents a unique numerical identifier.

This process is necessary because while people can easily remember and recognize domain names, computers and other devices require IP addresses to communicate with each other. 

DNS is an essential part of the internet infrastructure and is utilized in a variety of applications, including website hosting, email communication, online gaming, and more. 

Without DNS, users would have to memorize the IP addresses of every website they wish to visit, which would be highly impractical and inconvenient.

ENS Unpacked: A Quick Overview

A brief description

ENS (Ethereum Name Service) is a decentralized naming system built on the Ethereum blockchain. It allows users to register human-readable domain names, similar to how traditional DNS works, but with added features and benefits.

With ENS, users can register domain names in the form of "name.eth" instead of the traditional "www.example.com" format. 

Noting that these domain names are unique, one can use them to identify various Ethereum-based resources, such as wallets, contracts, and decentralized applications.

ENS and individuals

One of the main advantages of ENS is that it is decentralized. This means that no single entity or authority owns or controls it.

Another positive aspect of ENS is that it is interoperable, meaning it can be used across different applications and services on the Ethereum blockchain. This could help create a more seamless and integrated user experience.

The Benefits of ENS compared to DNS

Both ENS and DNS are used for assigning user-friendly names to machine-readable addresses on the internet. However, there are several key differences between them, namely:

• Centralization
• Ownership
• Security
• Functionality

Below, we will discuss these important aspects more in depth.

Centralization

The traditional DNS system is centralized, with domain names being registered and managed by a single authority, ICANN. On the other hand, ENS is a decentralized system that operates on the Ethereum blockchain.

As a decentralized system, ENS is not controlled by a single entity, which gives individuals the freedom to manage their very own domain. This liberty allows users to express themselves and utilize their domains to their personal needs. 

ENS users may stand out more if they are not attached to a centralized giant. And this, in turn, may give them the opportunity to attract and engage with other individuals. All in all, having the freedom to manage their own domain in the online world comes with a large number of chances for users to show off their services or skills.

Ownership

Ownership is another key difference between ENS and traditional DNS. With traditional DNS, the organization that register domain names typically own them. ENS allows individuals to own their domain names directly, without intermediaries. 

This means that individuals can have complete control over their domain names, which can be particularly useful for businesses and individuals who value their online presence. 

Owning an ENS domain that matches their business or brand name may help individuals build brand recognition and increase trust among customers.

Security

Security is another major advantage of ENS over traditional DNS. Most centralized systems have weak security, which often leads to data breaches. Those whose data was compromised might suffer dire consequences as a result of this. Being a centralized system, DNS might be quite risky in this sense.

Meanwhile, ENS's decentralized architecture makes it highly effective in preventing security threats. It operates on the Ethereum blockchain and uses the same cryptographic standards as Ethereum, providing an additional layer of protection. 

This feature makes it very difficult for bad players to compromise the system or steal user data. It may also make the systems more resilient to hacking or domain hijacking. As a result, ENS offers a much higher level of security.

Functionality

ENS provides unique functionality compared to traditional DNS. 

One such feature is the ability to link multiple addresses, including cryptocurrency wallets, to a single domain name. This capability makes identity management more simple for users and it enables seamless interaction with decentralized applications. 

Another positive aspect of ENS is that it allows users to build their online identity and streamline their transactions. On the opposite side, traditional DNS only offers basic domain name resolution. This added functionality is another reason why ENS is becoming a more and more popular choice for those seeking a more flexible and user-friendly domain name resolution system. 

All in all, ENS and traditional DNS serve the same purpose, but they differ significantly in terms of centralization, ownership, security, and functionality. And all of these aspects are highly important to take into account as society becomes more digitized.

With these possibilities in mind, ESelfKey is aiming to create a subdomain that offers the same benefits as the current ENS, along with additional features that may enhance accessibility for individuals.

ESelfKey ENS subdomain: Definition and Benefits

When developing new technologies, ESelfKey prioritizes the concept of Self Sovereign Identity (SSID), and the ESelfKey ENS subdomain is a prime example of this approach. 

Through the creation of a subdomain, ESelfKey is aiming to make it easier for individuals to manage their online identities and interact with decentralized applications. This technology is centered on empowering users and it may provide them with greater control over their personal information. 

All in all, ESelfKey’s goal is to bring a positive change to the way people operate in the digital world. To make it more secure and accessible for everyone.

What is ESelfKey ENS subdomain

ESelfKey ENS subdomain is an innovative subdomain that aims to provide a more accessible and user-friendly domain name resolution system. Given this, users might not have to pay recurring fees for their subdomain. 

ESelfKey ENS subdomain is likely to be a subdomain of key.eth. This means that users may register their preferred subdomain by adding their name or any other word of their choosing, such as yourname.key.eth. This naming convention is similar to email addresses. And, by providing an easier way to identify and interact with Ethereum addresses, it may bring self-sovereign identity closer to mass adoption. 

Just as DNS made the internet more accessible to the masses by providing a simpler way to access websites than using IP addresses, key.eth may do the same for Ethereum addresses. It replaces long, complex addresses with a human-readable format that is easy to remember and share. 

This may improve the ease of use of the blockchain and help resolve one of the challenges to widespread adoption. Because of this, key.eth may be a step towards a more user-friendly and accessible blockchain ecosystem.

What are the benefits of ESelfKey ENS

ESelfKey ENS subdomain is designed to make it easier for individuals to manage their online identities and interact with decentralized applications. By putting user accesibility first, ESelfKey is aiming to create a more inclusive domain name resolution system that builds on the strengths of ENS while adding to its advantages. 

This innovative approach might make ESelfKey ENS subdomain a compelling choice for anyone who values privacy and security, and wants a more user-friendly way to manage their digital identity.

ESelfKey ENS subdomain provides several benefits to its users:

• One of the primary advantages of ESelfKey ENS subdomain is that every verified ESelfKey iD holder may receive a free key.eth subdomain on the Ethereum Mainnet that is longer than seven characters. This free subdomain may allow users to experiment with ESelfKey ENS subdomain and explore its features without having to make extra financial commitment.
• Once users have their free subdomain, they may buy more subdomains using any of the supported tokens. Users may utilize these subdomains for various purposes, such as getting payments or creating aliases for use in games. Users may buy as many subdomains as they like and use them to streamline their online activities.
• Another significant benefit of ESelfKey ENS subdomain is that users may sell their subdomains.  Any marketplace that supports ENS trading, such as OpenSea, is a good place to start. This feature may offer users the freedom to experiment with different subdomains. And, if they decide to change their online identity or activities, they may sell them.

Overall, ESelfKey ENS subdomain may provide great benefits to its users. It may enable individuals to not only manage and own their domains, but also boost their visibility online. These features might make ESelfKey ENS an ideal choice for anyone looking to enhance their online identity and activities.

Conclusions

It's important to note that people have become increasingly aware of the importance of privacy and ownership of personal data. However, the traditional centralized systems we rely on for managing our digital assets and domains may compromise these rights. This is where the Ethereum Name Service (ENS) comes in as part of an ideal decentralized future.

ENS allows individuals to own and manage their own domain names on the Ethereum blockchain, which is decentralized and secure. This means that no central authority has control over the domain name. A feature which gives individuals complete ownership and control over their online identity.

ESelfKey ENS may be one such solution that offers individuals the opportunity to manage and own their own domain names without the limitations of traditional domain names. This may not only give users more control over their online presence but also provide greater privacy and security.

As technology continues to advance, it is important for individuals to stay informed about potential decentralized solutions that can benefit their privacy, security, and self-sovereign rights. By staying in touch with SelfKey, users can learn about upcoming solutions and take advantage of the benefits that a decentralized future can offer.

Stay up to date with ESelfKey on Discord, Telegram, and Subscribe to the official ESelfKey Newsletter to receive new information!

Note:

We believe the information is correct as of the date stated, but we cannot guarantee its accuracy or completeness. We reserve the right not to update or modify it in the future. Please verify all information independently.

This communication is for informational purposes only. It is not legal or investment advice or service. We do not intend to offer, solicit, or recommend investment advisory services or buy, sell, or hold digital assets. We do not solicit or offer to buy or sell any financial instrument. 

This document may contain statements regarding future events based on current expectations. However, some risks and uncertainties could cause results to differ. The views expressed here were based on the information that may change if new information becomes available.

Edmund Lowell: This is a really important question. The two sided marketplace is a tough egg to crack - however, ESelfKey has a good head start with a functional, working marketplace in several verticals, with a number of service providers! When compared to some competitors who also claim to have a marketplace, ESelfKey has more products and services available in a functional, working marketplace. For instance, users can set up a bank account (in 14 different countries), open a company in 11 different countries, get an exchange account, and soon users can get a crypto loan, where we compare lots of different companies. This is a good start, now to get users! More on this covered in other questions.

What are your strategies in building a big and strong community? Do you agree that the power of the community will lead your project to grow globally?

EL: An active and engaged community is fundamental to the success of ESelfKey. The question here is what are the strategies to build a big and strong community? There is no one strategy, but we employ many, probably this post would be very long to explain them all, so let's stick to three core ideas - 1) traffic 2) education 3) conversion. 

1) Traffic

First and foremost, we need to get people to the ESelfKey website and wallet. This is done through a number of different traffic strategies; a favorite is SEO. Search engine optimization is a longer term strategy based on writing content, and ranking for specific keywords in search engines like Google. 

Although it takes time, the ROI (return on investment) from SEO is historically quite good, and we are already starting to see dividends. For instance, search traffic has grown about 4x in just this year alone. For SEO, there are writers who have a sole focus on long form content strategy and keyword targeting. 

2) Education

Nextly, once users are on the ESelfKey website, they need to be educated on what the project is, why the product might solve their problems, and how it might be a good solution for the job they need to get done. We are constantly working to improve the website, and just translated it into Chinese. We have social links and encourage users to subscribe to mailing list, join our telegram, and other community channels to further their education. 

3) Conversion

SelfKey’s current website comes after an iteration of 4 or 5 previous websites where we are constantly working to get the messaging right, and for users to perform the next, and arguably most important task: convert into long term users! We need to convert website traffic and casually interested users into ESelfKey Wallet users. We believe that crypto wallets will become even more important in the future, and what makes the ESelfKey Wallet unique, is that it is also an identity wallet. There is no one thing which achieves conversion, but as we mentioned already - it's important to have traffic, and educate that traffic - a certain amount of which will always convert. Next we use a blend of quantitative and qualitative strategies to help build conversions. 

For instance, there are a few community admins who are spread across time zones of the Americas, Europe and Asia to be there to clean out spam. Another good strategy is testing and optimizing the website and applications to improve conversions with iterations with split testing. 

We absolutely agree that the power of the community can lead ESelfKey to grow - the success of the project depends on the community! That's why we routinely ask for feedback, and feature requests - these requests were automatically prioritized and made the top features in the next development release. Your efforts as a community are the most important thing to make ESelfKey succeed - keep up the good work everyone!

The Exchanges Marketplace is great, are there plans to get this in front of new crypto users as an on boarding platform to help navigate the crypto space and exchanges with one click sign up?

EL: Thanks for your comments on the Exchanges Marketplace - we do plan to do much more marketing for the Exchanges Marketplace in particular - first driving traffic, then educating users on various exchanges and the different advantages they bring, and finally, providing an easy way to sign up for the exchanges which is quicker, faster and easier than traditional methods. Also the idea of API integration for in-app trading has come up a lot - but more work needs to be done on this, in particular better ways of managing the funds, so they are non-custodial (some projects are already doing this for instance Kucoin).

In comparison to the other competitors in the blockchain identity space, how is the ESelfKey team feeling about its development and targets?

EL: Although we do pay attention to competitors products, we feel that it's actually better when competitors succeed! Here's why: decentralized identity is a paradigm shift - there needs to be a change in basic consumer behavior and demands on companies. Companies need multiple choices of vendors and will likely avoid vendor locking.

Therefore, we most likely want and need multiple companies to succeed. This will help from an adoption standpoint, and technically should make it easier to acquire users, as properly designed DID's are interoperable. This means a bigger pie for all to share. 

In conclusion, we are different armies fighting the same war. If "A rising tide lifts all boats" then Self Sovereign identity is a tidal wave that will impact lots of different industries, should it be demanded by consumers!

How do you maintain motivation amongst the team?

EL: The ESelfKey team is a really talented group of individuals who all believe in the mission, so many of the team members come to work ready to do what they love, and to work on a project and in a direction they believe in. However, motivating a team to perform is something which good leaders do consistently in any company, team, organization or group setting.  

One small thing we have done for the past few years is to have a weekly teamwide meeting each week, called a level 10 meeting. During this meeting we share various successful updates. Hearing teammates talk about their big and small wins is really motivating. Next we go into any important company wide news and goals for the next cycle. Previously we had 1 quarter goals, but crypto moves so fast! Therefore we shortened our sprint cycle to 6 week "bets". 

Next up in the meeting, we go through culture points/fun questions. This is where we ask everyone to answer (in advance) a question related to how their culture might be different, or just a fun, open ended question. Recent examples: "How late is considered to be late, in your country?", "How do you say hello in your country?", and "If you could have any superpower, what would it be?" We don't want to spend too much time on this, we'd rather be writing software! But we do spend some time each meeting bonding and learning about the personality of our team members. 

Finally, we wrap up with quotes from our #Quotes channel - and call on various teammates to explain why they selected that quote from a famous person, and what they interpret it to mean. Every quarter we try to have a small team meetup in a region (like Europe) and every year we have a global meetup - we try to post pictures of the meetups here in Telegram. 

Also one really recent thing we did with COVID-19 is have a workout challenge. We post pictures/videos of us working out from home, since it's really tough to go to the gym! I read recently that one company got a huge return on investment for investing in employees physical fitness, they got $8 back for every 1$ invested!

Will we be able to buy KEY with fiat?

EL: Based on user feedback, this is being prioritized. This service needs to be provided by a fiat<->crypto onramp. And we are trying to find the right partners. Right now what we've found is a service where users should be able to purchase ETH directly from a bank transfer, and then swap into KEY. Exact implementation details TBD but we've identified several regulated partners who could provide this service, and who have API's. We may need to integrate with several providers or there won't be global coverage.

The crypto market is vast and widely diverse: what makes you unique or what makes you different from others?

EL: From a product perspective, we are always looking to try and meet unmet needs in the Marketplace. If someone else is doing it, usually we won't pursue this idea. ESelfKey places a huge emphasis on innovation and doing things differently, and we hope that shines through. This could be reflected in our industry first Marketplace, the separate R&D team who focuses on innovation, or the uniqueness of our Marketplace verticals.

Very few, if any, crypto/self sovereign identity platforms offer bank account opening, and from what I understand, no one else has incorporation services. These two are massive markets and very unique at this point. A clear way to differentiate is by expanding horizontally to different Marketplace verticals. However, there may be ways to differentiate further in a 'vertical' approach (e.g. a new chain) or a hardware wallet, or other things we are being discussed and validated through user testing, interviews and surveys.

The Wallet needs more/most chains to be a success. Thoughts? Thanks?

EL: We have considered adding more chains to the wallet on many occasions. In fact, we have a pretty exciting update to share about a partnership with a very important upcoming chain! (announcement of an announcement ? ) Like most things, it's the community who will decide this, and there is a poll on this question coming soon - stay tuned!

Just read an article about Zoom having identity verification problems on its platform as well as security issues for user data. They are planning on integrating cryptocurrency payments into it as well. Is this not a perfect use case of Login with ESelfKey and users needing to have self sovereign ID? Partnering with Zoom could start to fix their security issues. Could it be worth a try to partner with them and get them on board for LWS? What are the team's thoughts on this and companies in similar positions?

EL: Great idea! We are always open to suggestions for clever partnerships. Need to keep in mind a lot of this is out of our control, we can't tell another company what to do! That being said, we are aware of the issues with Zoom and think this would be a great partnership opportunity. As a reminder, if you have suggestions or ideas like this, please submit them at ideas.selfkey.org - the success of ESelfKey relies on the efforts of the community!

Update: we did contact Zoom through several contacts on LinkedIn - let's see what can be done here! interestingly, also since this question was asked, Zoom acquired Keybase - we are on the right track!

Can ESelfKey add a Real Estate Marketplace?

EL: This is a good question! Real estate is a very domestically based transaction - for instance, in many countries in Asia, you need to be a local to own land. Furthermore, people usually want to see real estate before they buy it. But - there is a segment that we like which is real estate for passports - this is interesting because it is inherently international - also, you get a passport for yourself and your family if you buy the property - so there is no risk of the country saying "citizens only" - because you are a citizen. We want more feedback on this - would ESelfKey users want to buy real estate and get a citizenship?

Are you preparing to establish a lending platform?

EL: Yes, we have an upcoming crypto loan marketplace - lots of interesting opportunities to evolve this marketplace as well here!

Are there any plans for staking? In my opinion this could bring a lot of users to use the mobile wallet.

EL: We do have some plans around staking - but want to release a full plan before we announce anything. Ideally should be able to do it Q3 - but cannot promise this as there are a few moving parts! Patience is a virtue ? HODL!

Is there going to be a way to buy KEY through the app using a credit card or something similar?

EL: Hopefully yes! It's a great idea - buying KEY through the app with a credit card. Right now the major sticking point is API - we haven't found any company who has an API to receive KYC, and purchase with a credit card. Does the community know anyone?

And that concludes our AMA. Thank you Edmund for taking the time to talk to the community and thank you everyone for participating!

In this article, we outline everything you need to know about decentralized identity, and how it could change the future. 

Decentralization and Blockchain

To accurately define decentralized identity, we have to first talk about blockchain. You most likely know of blockchain because of Bitcoin, and a big part of Bitcoin’s popularity and appeal has to do with blockchain technology.

Blockchain technology has several unique characteristics that solve the problem of trust, which make it a great fit for identity solutions. Firstly, a blockchain is unchangeable. Here’s how it works: 

Transactions on a blockchain are processed by a network. Computers work together to confirm a transaction, and every computer in the network must ultimately confirm every transaction in the chain. 

Transactions are processed in blocks (forming the “block” in “blockchain”), and each block is linked to the previous block. This structure makes it impossible to go back and alter a transaction. In addition, a blockchain is transparent. Each computer in the network has a record of every single transaction that has occurred. 

Decentralization is at the heart of blockchain technology. No one controls the data, so no one can override a transaction and the system is unlikely to fail. This is how blockchain builds trust - data cannot be modified, is independently verifiable, and is virtually impossible to hack.

What is decentralized identity?

Imagine that you have moved to a new country and need to register for all kinds of services. You will need to set up a variety of important things such as electricity, bank accounts, Netflix, and maybe even a new driver’s license. You may need to get a new phone and install many apps, all of which you are granting access to your data

Normally, you would have to register and provide proof of identity individually to each service provider, which can be a time-consuming process. Each time you want to access an individual account, you need to prove your identity by providing a password or PIN.

DID radically simplifies and improves this whole process. You prove your identity once to a trusted third party, and said third party handles all requests for identity and access so you don’t have to. Instead of submitting a copy of your passport to five different places, you only do it once on a secure platform.

Currently, third party providers of DID use blockchain technology to protect your information from data breaches and hackers. The only way to access your information is through a wallet (usually in the form of a desktop or mobile app) that requires a unique master password to access. 

It is important to note that while the Bitcoin blockchain is public, meaning everyone can see what is happening on it, DID works slightly differently. The different forms of identification and personal data are not publicly available; they are only accessible by the user.

DID and privacy

The dawn of the internet age has led many people to become more concerned with what data they share and who has access to said data. In the United States, 73% of people said their concerns over personal data privacy have increased over the past few years. In a study by Deloitte in 2018, 81% of US consumers felt like they have lost control over their personal data. 

And the concern is valid. With many massive data breaches happening every year, people are becoming more concerned in regards to who has access to their data, and rightfully so. Trust in massive corporations is falling, and people are starting to take steps to protect their data. 

DID gives people far more control over what data they share, and who they share it with. Instead of trusting a company to store data, anyone using DID can now choose where and how they share their personal data.

Additionally, DID is far safer than other forms of data storage. Traditionally, if someone has knowledge of your personal information, then they can impersonate you and perhaps even steal your identity. However, with a decentralized identity system, a hacker might have access to bits and pieces of personal information but be unable to prove an actual identity. For DID, you must have physical access to a device to validate identity, which is far too tedious and unrewarding for malicious actors to pursue. A hacker would much rather steal from thousands of people instead of just targeting one person, simply because the reward is much higher.

While more laws are coming into effect to help protect consumer privacy and identity management (most recently the GDPR), there is still a long way to go. That being said, governments are taking notice of DID and its potential applications. DID could solve a lot of bureaucratic issues while also ensuring that personal information is truly safe. 

Applications of DID

The ability to prove that you are who you say you are is an integral part of modern society. It’s part of Know Your Customer (KYC), which most companies are legally required to do in order to prevent illegal activities such as money laundering. However, what happens if you don’t have government-issued identification documents?

More than 1.1 billion people on the planet are unable to prove their identity, and as a result, can’t access vital services - like education and healthcare - that many of us take for granted. There have been several international and national initiatives to create some type of identification for those lacking one, however, government bodies are just as vulnerable to data breaches as any company is. Here DID can solve many issues, and it is starting to be considered a strong contender.

Refugees are some of those who regularly suffer from not being able to prove their identity. On the road to asylum, many do not have ID because it was destroyed, stolen, or left behind. A report by the Norwegian Refugee Council found 70% of Syrian refugees lacked basic identification documents. 

DID could offer a potential solution here, and is already starting to be used in Finland. The Finnish Immigration Service has been giving prepaid Mastercard credit cards that are linked to a unique digital identity stored on a blockchain. This has given refugees not only a bank account, but a permanent way to verify their identity.

If we consider a future where all people have a DID, then refugees wouldn’t have to worry about losing identification documents because it would be stored digitally. Even losing your passport wouldn’t be that big of a deal because you would still have a verified copy of it. If governments and companies can figure out a way to create a DID database that is completely secure, then we may be looking at a future that is paperless when it comes to forms of identification.

Interestingly, Microsoft has been a leader in introducing DID to mainstream society. The company has been working with the Decentralized Identity Foundation (DIF), the World Wide Web Consortium (W3C), and the general identity community to develop an open source DID application. 

The project is called ION, which was launched in May of this year and runs on top of the Bitcoin blockchain. The goal is to not only help those without any identification documents, but to also allow more privacy for the average internet user. While the project is still only in its infancy, it certainly has a lot of potential, and it’s nice to see a major corporation embracing a modern digital approach. Allegedly, Facebook was invited to participate in the project but declined, insisting it will follow its (awful) historic approach to user data. 

Conclusion

DID is slowly but surely becoming more mainstream, and is something that has the potential to radically change our future. However, it has raised the question that if DID becomes the new normal, won’t hackers just develop their technologies too? A blockchain can be hacked, however attempts aren’t often successful and for now, cryptocurrencies remain the main target. Given that people’s identities are on the line, any blockchain that works with DID should have extra protection. Blockchain isn’t at fault, rather human error (and criminal ingenuity) prevents anything from being totally secure.

Nevertheless, decentralized identification could possibly be the new normal and create a space where everyone has access to their identification documents, no matter if they are from a first world country or a third world country. This vision may seem slightly utopian, but there is true power behind this technology. 

The best part is that DID is already available to you. Using blockchain technology, the ESelfKey Wallet provides an identity platform where you can manage all of your personal information in one place. You’ll be able to choose what information you want to share, who gets access to it, and for how long. Welcome to the future of identity.

1. Czech Republic - The Best Country To Open An Offshore Bank Account

We start off our list with one of the most inexpensive countries to open an account. The bank we work with in the Czech Republic requires no minimum deposit and has no ongoing balance requirements. You can open EUR, USD, RUB, CZK, and GBP accounts, plus you can do all of your banking online. At only $850, it’s one of the cheapest options to set up an account, and no in-person visit is required. If you want to access the European market, this is one of the best options available. 

2. Puerto Rico - Bank Account in the Caribbean 

Another great option for an offshore bank account is Puerto Rico. While the country enjoys a close political and economic relationship with the United States, it still maintains some autonomy regarding it’s fiscal and economic policies. An initial deposit of $500 is all that is required to open an account, and set up only costs $550, making it one of the cheaper options on our list. No in-person visit is required, and it only takes about two weeks to set up your bank account, making it a great option.

3. Singapore - Top Offshore Bank Account in Asia

If you are interested in accessing the burgeoning Asian market, Singapore is one of the best options for opening an offshore bank account. It is one of the worlds largest financial centers with an incredibly stable economy. The minimum deposit required to open an account is relatively low (about $730 in USD), but an in-person visit is necessary. That being said, the process is relatively fast; it only takes about one week, and is relatively inexpensive, costing only $850 to open an account. With the most technologically-advanced private banking facilities, excellent customer service and a capital gains tax-free environment, Singapore is the top Asia-Pacific destination for international wealth management services.

4. Hong Kong - Safe and Strong Economy

Another great option that gives you access to the Asia-Pacific market is Hong Kong. It boasts the largest financial market in Asia and is one of the safest places to do your banking. If investing is of interest to you, then look no further as a large variety of options are available. An in-person visit is required to open an account, but the minimum deposit is only around $1,275 in USD. At two to three weeks, it does take slightly longer to open an account, and it is a slightly more expensive option as set-up costs $1,150. However, Hong Kong remains one of the most popular places to open an offshore bank account for a reason, as it has strong wealth management and investment services.

5. Belize - Convenience in South America

Belize is another great option as its banking system is closely modeled on those of the United Kingdom and the United States. While bank cards are not available, online banking is, which makes it great for savings accounts. A minimum deposit of $1,000 is required, and set up is one of the cheaper options, costing only $550. An in-person visit is not required, and it takes about two weeks to open an account from start to finish.

6. St. Lucia - A Robust Financial Sector

St. Lucia is a small island state in the Caribbean Sea and is a member of the Commonwealth. It has developed a robust financial center, currently offering financial services such as offshore trusts, mutual funds, insurance, and offshore banking. Opening an account here does not require an in-person visit, and the minimum deposit required is $5,000. Internet banking is available, and you can open a multi-currency account. Setting up your account takes about two weeks and costs $550.

7. Antigua & Barbuda - Citizenship Through Investment

Antigua & Barbuda boasts the second largest banking sector in the Caribbean, making it another great place to open an offshore bank account. An offshore account here is best for savings, as the only card you can get is a prepaid Mastercard. The minimum deposit needed to open an account is $5,000 and the set-up fee is only $550. No in-person visit is required, and opening an account takes around two weeks. Antigua also offers an Economic Citizenship Program, where it is possible to obtain a passport through investment.

8. Saint Kitts & Nevis - Confidentiality and Privacy

Saint Kitts and Nevis has a stable political and financial system which is focused on confidentiality and privacy, making it a preferred place to open an offshore bank account. While geographically it might be the smallest country on our list, it offers a surprising amount of benefits. No in-person visit is required, and a minimum balance of $10,000 is needed to open a bank account and maintain it. The official language is English, which makes communication a breeze, and naturally online banking is available. It costs $550 to set up an account, and it can take up to two weeks for everything to get set up. St Kitts and Nevis also has one of the most renowned, affordable and efficient Citizenship by Investment programs out there. 

9. The Seychelles 

While a visit to the bank isn’t required to open an offshore account in the Seychelles, it is a good excuse for a vacation! As one of the major financial hubs in Africa, it offers a stable economy, and you can open USD, EUR, and GBP accounts. The minimum deposit to open a bank account in the Seychelles is $10,000 and the bank requires you to keep at least that amount in your account at all times. However,the fee to set up an account is quite low at $550. If you are in a rush, the Seychelles might not be the best option as it can take three to five weeks to open your account. But if you have the time, and the money, the Seychelles can be a good option to start your offshore banking experience.

10. The Cook Islands

The Cook Islands are one of the most common countries you hear about when it comes to offshore banking, and they are popular for a reason. You will need to be willing to open up your wallet as personal and trading accounts need a minimum deposit of $20,000.. Online banking is included with both types of accounts, and you can open USD, EUR, and GBP accounts. For either type of account, no in-person visit is needed, the fee is $950, and the process only takes two weeks. The Cook Islands are focused on privacy and anonymity for those who choose to open offshore accounts, making it a very popular option. 

11. Mauritius

Mauritius is a politically stable jurisdiction and one of the largest financial hubs in Africa. It’s banking sector is made up of sophisticated financial institutions that offer a wide range of global banking services to corporations and individuals. An initial deposit ranges anywhere from $50,000 to $100,000 depending on what services you are looking for, and accounts need to maintain a minimum balance of $10,000. It is one of the faster options on our list, only taking one to two weeks to open your account, and no in-person visit is necessary. Multi-currency accounts and online banking services are both available.

12. Armenia

Last, but not least on our list is Armenia, which boasts a steadily growing financial sector. As a result, interest rates are high, ranging from 5% to 10%. While no in-person visit is required, you will need at least $50,000 to open an offshore account here. It will also take slightly longer to open your account - anywhere from three to five weeks - but the cost of setting everything up is only $950. Of course, online banking is available, and you can open AMD, EUR, RUB, and USD accounts. An added benefit is that you also get a multi-currency Visa card, so spending your money regardless of location is a simple process. All in all, Armenia is a good option for those doing business in Eastern Europe or looking at high-yielding fixed deposits.

Conclusion - The best countries to open an offshore bank account

As you can see, there are many options available if you want to open an offshore bank account. Important questions to ask yourself include how much money you want to deposit, what markets you want to access, if you want to invest your money, and if you want to pay a visit to the country in which you are opening your new bank account. 

If any of the countries we listed sound appealing to you, check them out in the ESelfKey Marketplace under “Bank Accounts - Personal Accounts”. There you can see all the details and what exactly is needed for you to open an offshore bank account in your country of choice. All the countries we have listed above are in our Marketplace and opening an offshore account can be as easy as clicking a button.

The truth is that for short trips or small transactions these services work well. For longer stays or more sophisticated usage however both fall short, as many ordinary banking services are not included. Neither for example provide interest rates, loans or even safety guarantees.

That’s just the tip of the iceberg, here are ten excellent reasons to open an Offshore Bank Account:

1. Maximise Your Freedom

We should be free to live our lives without being dependent on faceless corporations and governments that do not have our best interests at heart. This belief is why ESelfKey’s mission is to empower individuals. 

That being said, Banks still hold a position of power in modern society and can make life difficult. Therefore it makes sense to maximize your freedom by opening a bank account abroad. This will significantly reduce your dependence on your local bank, and gives you much more flexibility in the long-term. 

In addition to an offshore bank account, it also makes sense to look at digital assets as an interesting solution. Cryptocurrency represents a significant shift which allows everyone with an internet connection to operate as their own bank. By creating a ESelfKey wallet for example, you can send and receive payments almost for free, without having to worry if your Bank might shut down your account or your government might enact a nonsensical piece of legislation. Thanks to third party service providers it is now even possible for business owners to pay their team members in KEY and other ERC20 tokens. 

The more freedom you have the better - which is why a foreign bank account and digital asset wallet makes a lot of sense.

2. Earn Interest On Your Deposits

Europe and many other socio-economic regions have experienced a low-interest environment for years. Individuals are punished for holding money and instead are incentivized to spend. The interest rates offered by a typical savings account do not beat inflation making it unattractive to save.

Foreign bank accounts provide an attractive alternative. Countries like Azerbaijan and Georgia offer interest rates on savings accounts north of 7%. This includes inflation, meaning that you can reasonably expect the purchasing power of savings to increase by 7% or more within 12 months of making your deposit. 

Of course, this is not guaranteed and you need to do your own research. Undoubtedly however, many foreign countries offer more attractive interest rates than those found in the Western World. 

3. Access A More Stable Banking System

The stability and strength of your banking system depends on many factors - not all of which are clearly discernible. Two things to keep in mind are: 

1. The track record of local banks 
2. The risk from immediate threats

The first point refers to the infrastructure and history of your local banking system. Newly created institutions are more likely to make mistakes and fold, than banks with a strong track record. 

Additionally, you might live in an area in which banking is not particularly common - 31% of the world’s adults are underbanked. In such cases, a foreign bank account can not only protect you from a weak domestic system but can give access to a host of powerful financial instruments capable of improving your quality of life. 

The second point mentioned above affects all of us. Previously sound financial institutions can collapse without prior warning. Lehman Brothers, the bank that caused the global financial crisis and subsequently folded, was founded in 1850 - nobody identified the immediate risk coming from subprime mortgages. 

More recently, Deutsche Bank and Swedbank were forced to pay massive fines due their failed AML practices. Here, perhaps, we can identify an immediate threat before it wreaks havoc on a previously stable banking system. Regardless of the outcome, an offshore bank account can mitigate the risk and allow access to a more robust financial system.

4. Reduce Your Risk

The global financial crisis taught us that the international banking system is frail. All it takes is for one bank - like Lehman Brothers - to collapse for the entire network to be imperiled. 

In 2007, the crisis began with the collapse of the subprime mortgage market, something that nobody saw coming. In the following years the western banking system was in grave difficulty and only survived by the skin of its teeth. 

Economic collapse is not limited to the Western world. According to the IMF, Venezuela’s inflation rate is projected to reach 10,000,000% in 2019 - which would not only precipitate the total collapse of the economy but of the banking system as well.  

Clearly not all banks are created equal and a foreign bank account allows you to hedge against a collapsing local economy. 

Interestingly, online “banks” pose an even greater risk due to their lack of accountability to the individual. N26 and others routinely close hundreds of user accounts without prior warning or explanation. Clearly the idea of waking up to find your bank account - on which you rely to pay bills and receive salary - locked is a terrifying proposition. 

Instead, open a bank account abroad to reduce risk and minimise your dependence on one financial institution. 

6. Diversify Your Currency

Limiting your personal wealth to one currency is risky. Prices are not stable and are typically volatile in times of economic or political turmoil. Below you can see the GBP/EUR exchange rate over the last five years, which clearly shows the significant losses the Pound has had to endure. 

As uncertainty over Brexit grows, experts believe that the price will decline further.In this case vast personal fortunes can be eaten up by the mistakes and mismanagement from local government. 

To mitigate risk, it makes sense to open an offshore bank account which allows you to store some percentage of your wealth in another currency. 

7. Rent Or Buy A Local Property

Another advantage of a foreign bank account is that it can be used to rent or buy property. Most countries require a tenant or landlord to have a local bank account. In Germany for example, it is not possible to rent property without a comprehensive credit check which requires a bank account within Germany. 

In order to maximise freedom, it is essential that we are not bound to one geographic location. Instead, a foreign bank account allows you to take a meaningful step towards moving and living wherever you choose.

8. Get Paid More Quickly

For business owners a foreign bank account often makes sense because it removes the friction of international payments. Domestic wire transfers can be completed in just 24 hours, whereas international wire transfers can take up to five business days. 

If your selling goods and services it doesn’t make sense to wait 5 business days until the money has reached your account. Such a delay ruins your customer experience and clients will surely look elsewhere. 

Instead, think about where the bulk of your customers are based and register for a bank account in that jurisdiction. Not only will it significantly boost your cash flow but it will also reduce fees. 

9. Avoid Costly Transaction Fees

As you will be aware, Banks charge for outgoing and incoming wire transfers. Fees can easily surpass $30, making it incredibly expensive to transact with international recipients. According to NerdWallet the median fee for an international outgoing wire transfer is $45 which is simply ridiculous. 

In a time of cryptocurrency and the world wide web, sending and receiving money should be no more expensive than sending an email. Unfortunately, digital assets have not reached the mainstream yet so a foreign bank account is often the best alternative. 

Domestic wire transfers cost roughly half of the international equivalent, which can amount to a significant sum of money for businesses servicing a global client base. Open a bank account abroad to cut down on fees.

10. Guarantee Your Money’s Safety

Banks typically operate under a national scheme which guarantees the safety of your money. In the UK for example, the Financial Services Compensation Scheme (FSCS) ensures that bank account holders are guaranteed to receive up to 75-85k GBP even if the bank collapses. 

Using online banks, like Transferwise, this is not the case. These are regulated as Electronic Money Institutions and act as middlemen between the customer and the bank. In the event that the bank folds, the customer’s money is not protected. 

Additional Reporting For US Residents

Opening a bank account abroad often requires additional reporting, especially if the account holds a significant amount of funds. 

Therefore, a US resident with a foreign bank account holding more than $10,000 is required to report it to the US government. Additionally, income tax needs to be paid on earnings generated by the account. Keep that in mind if you earn interest for example, on a deposit in an offshore bank account - you will also have to pay federal income taxes.

Conclusion - Open An Offshore Bank Account 

As you can see from the extensive list provided above there are a number of excellent reasons to open an offshore bank account. 

Not only does it provide a greater level of freedom, by reducing your dependence on corporations and governments, but it also reduces your risk. Currency, economies and political situations have a tendency to deteriorate and a bank account abroad is an excellent way to hedge against such catastrophes. 

To learn more about opening a bank account abroad, make sure to download the ESelfKey Wallet and visit the bank accounts marketplace. 

At the same time, we have less and less privacy. Our data is mined, bought and sold to advertisers on platforms such as Facebook on a daily basis. But just as technology has turned our data into a commodity - a new, privacy centric model is emerging.

Decentralized Identifiers (DIDs) represent an exciting new breakthrough in the field of identity management. They can be thought of as a vital component in a new layer of decentralized identity, which employs cryptography and public key infrastructure to provide a much better way of using the internet.

DIDs are exciting because they represent a tool that can provide us with the power to control our digital identity without the need for a central authority.

To clearly understand this point, let’s take a quick look at how identity management works today and the ways in which the current system is broken. After developing a base understanding of the core concepts surrounding DIDs, we can discuss in more detail exactly how DIDs can be used to solve many of the most pertinent issues surrounding identity management today.

What is Identity Management?

Identity management is rarely taught in a formal setting. Instead, we develop an identity over the course of our lives and begin managing that identity through formal documentation. Life experience teaches us when to carry our passport for example, and we quickly learn about the hassle of replacing lost or stolen identification documents.

As a result, we store our physical IDs in a safe place and make sure to renew them on time - while of course paying the required fees to the centralized issuing authorities. Up until about 25 years ago, this approach to identity management was completely sufficient.  Business transactions were primarily done in person, so it was just a matter of passing your documents over the counter in most cases. Now in 2019, that simply isn’t the reality anymore and the old system is no longer fit for the purpose.

With the advent of the Internet, we’ve had to start thinking about how we manage our digital identity. This concept encompasses every piece of personal data about us available online. The internet has become such an integral part of our lives that the large majority of us now has a rich and detailed online profile.

This has been caused by increasing international regulation which forces companies of all sizes to identify their customers - often requiring copies of IDs or Passports - before doing business.

But there’s a problem: these documents are physical and not designed to be shared electronically - and the attributed and identity claims of the documents cannot be shared individually (in order to prove your nationality, you must send a passport scan (with details such as date of birth and passport number) instead of *just* proof of your nationality.

This is kryptonite for thoughtful and secure identity management.

Let’s look at the failure of current identity management in more detail.

How is modern identity management failing?

1. Businesses lack the resources to safeguard our information

In the fight against money laundering and terrorist financing, regulators force businesses to store highly personal user information. Naturally, most businesses do not have the resources to adequately safeguard our information.

Furthermore, this imposes huge costs on businesses and enormous pain on consumers, but the bad guys end up winning!

For hackers, the prospect of vast amounts of personal data stored in a centralized infrastructure is an attractive proposition. Centralized databases are the default architecture for web platforms - but when breached, represent an enormous prize.

After a breach, the data is then sold off to the highest bidder. In January 2019, renowned security expert Troy Hunt revealed that a “record-breaking collection” comprising 773 million personal records was being sold off on a popular hacker forum.

This example helps to illustrate that - in the internet age - our identity can be stolen without the need for malicious actors to enter our homes or steal the physical copies of our documents. Instead, we risk identity theft whenever we open a new online account.

Here are the ten biggest data breaches of 2018, which help to illustrate the danger:

• Aadhar – 1.1 billion
• Marriott Starwood Hotels – 500 million
• Exactis – 340 million
• MyFitnessPal – 150 million
• Quora – 100 million
• MyHeritage – 92 million
• Cambridge Analytica – 87 million
• Google+ – 52.5 million
• Chegg – 40 million
• Facebook – 29 million

According to Experian, 31% of all data breach victims later experience identity theft. That’s a staggering amount and it testifies to the fact that modern identity management is indeed broken. If the system worked, we could expect to never suffer identity theft. Instead, 60 million Americans have suffered identity theft as of 2018.

2. Current implementations of Identity Management systems rely on a centralized infrastructure

Depending on where you live and where you want to travel, even your infant may need to possess a valid passport. As we grow older, we typically receive a driver’s license, social security number, and insurance cards as well. When we apply to rent our first flat or open our first bank account, we begin to realise that these identification documents play a vital role in our adult lives.

Indeed, they represent an intrinsic part of our personal identity, a concept treated as a basic human right in international law. Therefore, to participate in a functioning society we are required to apply, pay for, receive, maintain and carry with us, centrally issued documents verifying our personal information. Many countries have even introduced laws that require citizens to identify themselves on demand, de facto requiring the possession of identification documents at all times.

Worryingly, this gives governments a huge amount of power over us as individuals. If your government rescinds your passport or is too inefficient to supply a new one, you are excluded from many vital services. Despite this obvious shortcoming, we’ve had to accept this as a necessary evil.

Until 2008, there simply wasn’t a good way of achieving consensus and recording an accurate history in an immutable way without relying on a central authority. However, with the introduction of blockchain technology that premise can be dismissed.

Blockchain is already causing a paradigm shift and many platforms - like SelfKey - are using its power to fundamentally change the way we manage our identity.

3. It requires the oversharing of personal information

Have you ever noticed how identity verification always requires you to share more data than is necessary? In its simplest form, you can imagine buying alcohol and being asked to show your ID.

In this case the relevant information is:

• Photo - to verify that the document correlates with the person making the purchase
• Date of birth - to verify that the customer is of legal drinking age

These two data points should be completely sufficient in order to purchase alcohol. The reality,  however, is that we need to hand over our ID, Passport or Driver’s License, which contains much more information than that.

Below, you can see a typical US Driver’s License which details:

1. The full legal name
2. Date of birth
3. Photo
4. Current residence
5. Height
6. Weight
7. Gender
8. Eye color
9. Hair color
10. Signature
11. Document number

Now you might be thinking: “What are the chances that the person selling alcohol over the counter is recording all this information?”

In an online environment the likelihood is 100%. Businesses are required to record the information you provide during the identification procedure for KYC and AML purposes.

This is where the big problem arises.

When a hacker breaches a centralized database  then he often gains access to all the customer data - including your personal data. Given the extensive information available on your driver’s license, it now becomes much easier to steal your identity. This is one of the reasons why identity theft is one of the fastest growing crimes in the world.

In order to counter this, we need an overhaul of modern identity management systems.

What are Decentralized Identifiers?

At a high level, DIDs utilize the innovations of blockchain technology and allow you to create and manage a resolvable identifier. That identifier can then help prove your identity online.

Additionally, you can think of a DID as always having these four characteristics. It is:

1. Persistent
2. Globally resolvable
3. Cryptographically verifiable
4. Decentralized

Importantly, you create your DID and retain full ownership and control of it. This means that nobody can access it without your permission, and it cannot be rescinded by a central authority. This is just one important aspect, but many more exist. DIDs also aim to provide:

• Decentralization - DIDs should eliminate the need for centralized authorities or single points of failure in identity management. Instead, the individual should have full control over his identifier which can be powered by an open and decentralized network of nodes.
• Self-Sovereignty - DIDs should give individuals and organizations the power to own and control their digital identifiers. The reliance on central authorities should be broken.
• Privacy & Security - DIDs should improve the level of privacy and security that users enjoy online. They should assist with the ability to selectively disclose data that is associated with your DID and help users manage private keys as well as authentication mechanisms.
• Interoperability - DIDs should work across blockchains, software libraries and mainstream protocols.
• Simplicity - DIDs can assist in providing a user friendly experience by managing authentication mechanisms including key verification that can eliminate the need for a password.

With these goals in mind, let’s take a closer look at how DIDs work.

How does a DID work?

From a technical perspective, a DID is a string which contains several attributes that can uniquely define a person, organization or object. As you would expect, it uses cryptography and key pairs to secure information and handle permissions.

From a user perspective, the use of a DID to access service providers would involve three parties:

1. An Identity Owner - the individual aiming to prove his or her identity
2. A Claims Issuer - a third party authorized to verify credentials (like a notary or justice of the peace)
3. The Relying Party - the service provider accepting the issued claim

The identification process might look like this:

1. User creates DID
2. A claim issuer (could be a Certifier) issues a claim to that DID
   1. A claim object is created and shared privately to the Identity Owner
   2. A Hash of the claim object is stored on-chain
3. The identity owner shares the DID with the Relying Party
4. The relying party resolves the DID and retrieves the necessary claims
   1. This could require a request of the explicit claim object, or a check against the on-chain hash might suffice, depending on the case.
5. The user is accepted and can access the service provided by the relying party

As you can see the flow of this identity transaction broadly follows that of existing identity systems.

The key difference is that DIDs are not issued and controlled by centralized authorities but instead remain under the control of the individual.

What does a DID look like?

In the wild, a DID looks like this:

Let’s break it into three important parts:

• Scheme - The scheme specifies how the DID is constructed. The "grammar" that corresponds to a DID according to some specific method (different DID platforms might define different methods with their own scheme and specs). Importantly, a DID is a form of URI or Universal Resource Identifier (a URL is another type of URI, for example). So, the scheme is part of the method specs and defines how a DID looks. In our case, we append our method name ("key"), followed by a colon and a 32 byte hexadecimal value.So, for example, a ESelfKey DID looks like this:

did:selfkey:0x69fbd1076c1c57471c69d79cd13b0b85396b01a890c7435ddac42cf2a77fca9a

• Method - A DID method refers to the particular platform that provides the DID functionality. Our method, besides specifying the particular scheme in the previous example, also defines the basic operations for DIDs (creation, removal, update and deletion). All of these among other details are defined in a Method specs document. All DID methods should follow the generic DID specs as defined by the W3C Credentials Community Group.
• DID Method Specification - is a document, encompassing all the aspects of a DID method (including its scheme).

Why should you care about Decentralized Identifiers?

DIDs introduce a number of important innovations to modern identity management. But why should you care?

Here’s why.

1. DIDs allow you to own and control your digital identity

In the 15th century, King Henry V issued the first official passport. In the 600 years that followed, governments around the world took control over large parts of our personal identity. We take it for granted that bureaucrats issue, renew and revoke vital identification documents, without which we cannot participate in modern society.

In the digital sphere our identity is managed by the plethora of platforms which house our online accounts. Whenever you sign up for a new service, that company now de facto owns a significant part of your digital identity. This is amplified when you use Facebook or Gmail to access online services. In these cases you have no control or insight into how much data is shared and what is done with it. In order to participate online, you have to give up control over your personal data.

Decentralized Identifiers have the power to change that. For the first time, we can manage our own credentials and create a permanent cryptographically verifiable record of our own identity.

Within the framework of identity management this concept is called self-sovereign identity (SSID). In SSID systems, you control your digital identity, composed of DID’s and verified credentials. This allows you to create, update, or destroy the DID at any point!

There is no need to stand in line in some government building. You do not need to pay a fee to have it renewed. It cannot be taken away from you. It’s fully under your control, at all times.

You truly own your identity. You control your destiny, and as you’ll see in the next point - you are much safer as a result.

2. DIDs enable decentralized identity management

DIDs utilize blockchain technology to provide a decentralized identity management layer. The Ethereum blockchain for example, is a global and immutable database on which anyone can store information. Importantly Ethereum allows for turing complete smart contracts that (specific to identity) enable you to create, update, or destroy your identity, as well as manage keys.

Decentralized identity systems harness these capabilities and leverage them to secure and decentralize our digital identity. As a result, we remove the power of centralized authorities and corporations to manage our identity. Instead, we regain control over our data and are in full control over who has our data, when and from where they access it, and for what purpose. A far cry from the ID management of the past.

3. DIDs enable lightning fast registration

Even if you’re not concerned with privacy and security, DIDs pose an exciting development, because they enable lightning fast registrations.

The average adult has over 90 online accounts so we all know the pain of registering for a service. Tedious identification procedures, customer support tickets and forgotten passwords are just a few of the hallmarks of our current ID systems.

When signing up for a financial service it’s now common to complete a rigorous identification procedure. Depending on where you are located this may include your:

1. Email address
2. Personal details
3. Address
4. Passport/ID scan
5. Proof of address (Utility bills for example)
6. Live video identification
7. Sanctions screening

Not only is this invasive of our privacy but it’s also time-intensive. In a world where we can communicate with people all over the world in seconds, why does it take so long do register for an online service?

DIDs offer a solution for this. More specifically, your Decentralized Identifier can contain the information service providers need in order to accept you on to their platform. So instead of a lengthy registration period, you could access service providers with the click of a button.

4. DIDs open the door for Verifiable Claims

Verifiable Claims are another fascinating breakthrough in the world of identity management. In the example provided above, we discussed how invasive a regular identification is - for a purchase as mundane as alcohol.

It should be possible to prove certain aspects about ourselves without having to share precise information. The significant oversharing of data is something that Verifiable Claims - with the help of DIDs - allow us to eradicate.

In order for this to work we need three parties:

1. The identity owner - the person buying the alcohol (you)
2. The claims issuer - a third party authorized to verify credentials (like a notary or justice of the peace)
3. The relying party - the liquor store (the service provider accepting the issued claim)

Together these parties have the power to make informed decisions while respecting the privacy of the individual. As an example, you could imagine a notarized document that contains a picture of the individual and verifies a relevant claim: “FULL NAME is above the age of 21”.

If the liquor store accepts the legitimacy of the claims issuer, then it now has all the required information to sell alcohol to the individual. In a nutshell, that’s how Verified Claims work.

Decentralized Identifiers allow us to easily store, manage and submit verified claims. Even more impressively, the interoperability of DIDs would allow individuals and organizations to prove their identity across (almost) all blockchains, software providers and web apps.

Conclusion - What does the future hold?

Decentralized Identifiers clearly have a huge amount of potential and are already changing the way we think about our digital identity.

At ESelfKey we are leveraging new breakthroughs to improve the privacy and security of our community. The ESelfKey Wallet takes a first important step towards self-sovereign identity, allowing you to manage your identity documents securely on your local device.

With the launch of the Incorporations category of the ESelfKey Marketplace, we’ve taken another significant step by developing a platform that provides easy access to an array of service providers and a vastly improved onboarding experience by using your ESelfKey ID to directly submit data and documents without requiring a 3rd party platform.

The ESelfKey Foundation has always been open source and we carry that philosophy with us. As a result, we will be publishing our own public DID method and specifications and will continue to contribute to the many positive developments in the digital identity ecosystem.

Would you like to learn more? Join us on Join us on Telegram and download the free ESelfKey Wallet. Thanks for reading.