Key Points
- MicroStrategy plans to launch a decentralized identity solution named ‘MicroStrategy Orange’ on the Bitcoin network.
- The solution aims to provide trustless, tamper-proof, and durable decentralized identities using the public Bitcoin blockchain.
MicroStrategy has unveiled its intention to introduce a decentralized identity solution on the Bitcoin network. This solution will store and retrieve data using Ordinal-based inscriptions.
‘MicroStrategy Orange’ Announcement
The announcement was made by Michael Saylor, the executive chairman of MicroStrategy, at the company’s Bitcoin For Corporations conference. Saylor named the solution ‘MicroStrategy Orange’.
The purpose of this solution is to create trustless, tamper-proof, and long-lasting decentralized identities. This is achieved by solely using the public Bitcoin blockchain.
Decentralized Identifiers and Components
Decentralized identifiers (DIDs) will provide pseudonymity, similar to how real-world identities are not connected with Bitcoin addresses and transactions. The MicroStrategy Orange solution is made up of several components: Orange Service, Orange SDK, and Orange Applications.
Orange Service allows users to issue DIDs to their staff and deploy applications. The Orange SDK and Orange Applications provide the necessary tools for customization and integration on various devices.
MicroStrategy has developed an application called “Orange For Outlook”. This incorporates digital signatures into emails, allowing receivers to authenticate the sender’s identity.
Upon accepting an invitation email signed by MicroStrategy’s DID, the onboarding process begins. This generates a unique DID and a public and private key pair for each user. The user’s DID and public key are then stored on the Bitcoin network, and they can start inviting their personnel to create their own digital identities.
Future Plans and Previous Attempts
MicroStrategy plans to expand the capabilities of its Orange applications across other messaging platforms, social media networks, and various applications in the e-commerce, enterprise, and fintech sectors.
Microstrategy is not the first company to explore Bitcoin as a potential identity solution. In 2016, the BitID project was initiated to simplify identity verification for online platforms while ensuring user privacy. However, this project is now inactive.
ION (Identity Overlay Network) is another autonomous identity system that operates on a Sidetree-based DID network and incorporates the Bitcoin blockchain and IPFS. Other blockchain networks, such as Worldcoin, employ similar strategies to build a global digital identity and financial network.
Ecuador’s Sistema de Dinero Electrónico is also worth noting. The country introduced a digital currency linked to a government-issued digital ID system, enabling citizens to access and use the currency with their ID. However, this initiative was eventually phased out after facing criticism from state banks.
MicroStrategy’s announcement comes shortly after the company reported a net loss of $53.1 million for the first quarter. Notably, this figure does not account for the significant increase in the market value of their Bitcoin holdings. The company currently holds 214,400 Bitcoin, which appreciated by 65% over the quarter, valued at $15.2 billion at that time.
