Your crypto wallet is the key to your Web3 identity

Digital identity has been a fraught topic since the early days of the internet. Web2 bridged the gap between people’s offline lives, online identities, and creative and consumer habits, giving way to a deeply integrated web experience designed to be as personalized and focused as possible. As a new phase of virtual interaction and digital identity appears on the horizon – one that is even more interconnected than Web2 – we need to rethink personalization and ownership with an eye on what worked and what didn’t in the world of Web2.

While there is no blueprint for the Web3 identity process, we can predict the trajectory digital identity will take in the metaverse. This trajectory is already taking shape.

All you know, decentralized

Virtually all aspects of the Internet as we know it are ripe for decentralization. Chat and messaging services are private and encrypted, browsing is incognito and transactions take place between individual bank accounts (albeit brokered by an intermediary) – all signs point to a user-operated system that focuses on the individual rather than the individual. the collective.

The rise of the internet isn’t the first time we’ve seen this progress either. The radio started out as a series of AM stations, gradually expanded to include FM, then developed satellite capabilities that provided universal access to a variety of stations. Web3 and the way identity functions in it roughly corresponds to satellite radio. So in the history of modern communication systems the arc bends towards decentralization.

In this new space, a person’s crypto wallet will hold the key to their presence in the metaverse, from serving as a gateway to games to helping build non-replaceable token (NFT) collections to empower them. to do business. Crypto wallets will be connected to everything users already do on the internet and to every online activity to come.

Related: Web3 is critical to data sovereignty in the metaverse

The future of ID(entity)

People accustomed to traditional markets may find themselves confused, intimidated and even put off by the crypto-based ownership revolution. But it is the means (identification), not the ends (identity), that change.

A user’s crypto wallet functions as a key and can access all of their domains, real estate, NFTs, and other virtual properties. If they lose that key, they have to wait for the term to expire to renew it. That said, the wallet will be so integral to everyone’s online identity that a total loss is unlikely, and companies are actively developing solutions to combat such losses.

Identity is not only transformed, but also in relation to ownership. For example, crypto wallets will lend a hand when purchasing web domains. Third-party regulators, such as the Internet Corporation for Assigned Names and Numbers (ICANN), will no longer hold sway over users’ ability to purchase or subdomain a top-level domain (TLD), and users do not need to request permission to do this themselves. Domain ownership now becomes permanent; even minting a subdomain of a TLD that was previously owned will grant a user ownership of that subdomain indefinitely.

All of this is only possible through a crypto wallet. With the hype we’ve seen around the metaverse and NFTs, Ethereum and other wallet addresses will be the primary channel for accumulating virtual wealth.

Related: Identity and the Metaverse: Decentralized Control

But what about Web2?

All this is not to say that Web2 will become completely or immediately obsolete. It won’t fade, but it will be incorporated into Web3 spaces. For example, domain ownership will become backwards compatible with ICANN standards, meaning individual owners will gain the same legitimacy as in the past by acquiring a domain through ICANN.

Services like PayPal will of course continue to exist: those accounts will eventually be linked to a wallet address instead of an email address. This shift is already happening at mainstream financial platforms and retailers.

Streamlined and accessible

Given the possibilities of crypto wallets, the future of domain purchases and digital identity will pair a mindset of collective benefit with individual ownership. It will revolutionize the way we identify ourselves online. Domain Name Service (DNS) records, which are used to trace URLs to IP addresses, were previously required by resolvers, but this resolution will occur natively in a fully realized Web3 environment. Similarly, many of the additional steps required in Web2 ownership and identification processes will become redundant.

These changes will eventually result in an immutable proof of identity on the blockchain. Once a user buys a property, be it a domain or an NFT, he becomes the owner; no organization can revoke or tamper with that property. The main goal is accessibility across the entire metaverse. We need to develop systems that promote viability, usability and usability to create an internet that works for everyone.

This article does not contain investment advice or recommendations. Every investment and trading move carries risks, and readers should do their own research when making a decision.

The views, thoughts and opinions expressed herein are those of the author only and do not necessarily reflect or represent the views and opinions of Cointelegraph.