Why Your Growth Strategy Needs To Incorporate Web3 Identity

Web3 identity is an emerging online subculture. You see .eth names in X profiles. You see “connect your wallet” to login to websites. If you’re a startup, it’s time to think about how you can welcome and integrate this subculture into your growth strategy because it’s going mainstream.

Pulling back the curtain of online identity

Online identity is a form of expression. As people invest more time, money, and creative energy into their online identity through social and community channels, they want to own it, not rent or borrow it. Wallets are breaking the Internet in the best way imaginable, making that identity ownership possible.

So far, we’ve relied on domain names and email addresses to identify, communicate, and interact online. “Email me here.” “@ me there.” Each of us has a personal and work email address with many connected social profiles. Each address represents a different identity. These have some degree of online personalization, but most existing identities are owned by third parties, not us.

Privacy and ownership will come down to the individual in Web3. We will finally be able to own every aspect of our online identity and choose what information gets shared with the world.

What is a Web3 identity?

A Web3 identity is created from a cryptographic public/private keypair, where the holder of the private key owns and controls the identity. Each identity is capable of being its own digital passport or bank account. A blockchain wallet is an example of a Web3 identity. An owner can validate claims, for example their cryptocurrency balance, without relying upon third-party verification.

A Web3 identity starts with a wallet. Wallets, or blockchain addresses, act as an account or ID: think a bank account, or a digital passport. These accounts come with a public/ private cryptographic key pair. This key pair enables the creation of a cryptographic signature that proves ownership. With a wallet, an owner can validate claims without relying upon third-party verification.

Web3 identities can replace traditional ones. Logins, for example, can function without an email and password and with the universal “connect wallet” feature. This new paradigm means users can authenticate by cryptographically proving they hold the key to gain access to digital services, data and assets.

Choose your own identity adventure

Look at the Web3 world today. It’s full of personality. Decentralized naming services, such as ENS, are used by thousands to showcase their different personas to the world.  

These .eth, .nft, .lens, .sol identities aren’t just a simple way to remember blockchain addresses. These act as digital tattoos, a form of personal expression. They make Internet interactions more fun, diverse and human.

Openness & interoperability 

Full ownership of online identity means we’re in control; therefore, we can choose to revoke access and walk away whenever we want. Web3 technology and applications, either the code or program interfaces, will need to be open and interoperable for true ownership to realize its vision.

Anyone should be able to develop and reuse applications and components across multiple worlds. When we enter any world, we should be able to choose how we are perceived, rather than targeted based on our activity. Today, this is made possible with Web3 wallets. And there are already organizations leading the charge.

Privacy for users & applications

Because Web3 identity is controlled by the individual that owns it and there is interoperability between worlds, there is an opportunity to create innovative solutions around identity management, protection, and verification.

Anyone can prove “they are who they say they are” to a third party—without handing over sensitive personal information. No government-issued ID card. No date of birth. The third party does not need to collect or store that information. 

This new identity model also removes a burden of responsibility from application owners: As a data custodian, there’s no need to store Personally Identifiable Information. This reduces the risk of a data breach or disincentivizes an attack in the first place.

The future of online identity

Web3 identities will be commonplace. People, organizations, and brands will use these digital identities to prove themselves online and offline. Any person or organization may have multiple identities, depending on context.

Every Web3 user will have at least 10 Identities.

We will never have to pick just one identity or own just one wallet. We have infinite space for creative expression so we can create multiple identities, then curate and control what each one shares with the world.  

I have met many friends and colleagues managing over 10 identities. Four or five for day-to-day engagement and five for use in different contexts or worlds. Owning many identities unlocks the ability to segment distinct aspects of your life. We can separate and curate what information we share when it comes to work, finances, health and hobbies.  

Conclusion

The future of the Internet will be built upon this new paradigm of identity ownership. Wallets are already here. The identities and personalization are following. Our digital world will be infinitely more flexible, creative, and human because of it.  

Adding Web3 identity support to your applications gives you an opportunity to access a group of tech-savvy, loyal users. Embrace the subculture, get ahead of the competition, and make your application relevant for the next generation.