Blockchain giant Coinbase plans to become the Facebook of crypto with the acquisition of Distributed Systems to create a platform for users to sign up and connect their crypto wallets.
Coinbase plans to build an identity verification service by compiling the KYC data collected from its 20 million customers to serve as user identities on the blockchain for future look-up by authorized third parties.
Coinbase Identity project manager B Byrne, says: “Think about how this applies to something like a Social Security number. Every time you want to prove who you are with your SSN, you need to give away a copy of it. That copy has exactly the same power as the original, so when there’s a data breach with copies of your data it puts your identity at risk. A decentralised identity will let you prove that you own an identity, or that you have a relationship with the Social Security Administration, without making a copy of that identity. If you stretch your imagination a little further, you can imagine this applying to your photos, social media posts, and maybe one day your passport too.”