The Coinbase exchange, arguably the most well known in the world, now seems to be enlarging its operations to include digital identities. A recent Coinbase announcement indicated that Distributed Systems, an organization focused on decentralized identity solutions, is joining the Coinbase exchange. According to the statement released on the Coinbase blog –
“I’m pleased to announce the Distributed Systems team is joining Coinbase to help us work on this opportunity. With their work on the Clear Protocol and GraphQL, Nikhil, Alex, and the rest of the team have gotten their hands dirty in the technical detail of using blockchains to improve how identities mesh with digital products.”
The importance of digital identity management
The importance of a secure digital identity cannot be understated enough. Cyber criminality is not just on the rise. According to all the latest reports, it is exploding. With assets becoming increasingly digitalized, there is now more at stake than ever. Knowing somebody’s phone number can be enough to hack millions of dollars, with a simple sim card swap using basic social engineering.
At some point, people will be using their digital identities to open the doors to their homes, drive their cars, pay their bills, and hold their finances. It is going to be tied to everything, and a secure digital ecosystem is necessary. There are already numerous projects working on this, such as Metaverse ETP. The benefits of a digital identity tied to everything are outstanding. On the other hand, if hacked, it will be an absolute disaster for the victims.
Coinbase exchange expanding
The Coinbase exchange is rapidly taking over the world of cryptocurrency, expanding on all fronts. It recently acquired Federal licenses to trade, launched a crypto index fund, took over the Paradex trading company, improved its Coinbase Commerce payment system, opened an office in the lucrative Japanese market, launched a suite of products for institutional investors, released a series of crypto gift cards, and upgraded its trading exchange. The Coinbase exchange is becoming an all-in-one digital platform, which is in many ways the opposite of a decentralized ecosystem of interrelated but interdependent cryptocurrency networks.
Digital identity management is possibly the most important of all, and if Coinbase provides this as well as other crypto-financial services, then it is certainly a cause for concern, even if the identity management is allegedly decentralized.
Some are suggesting that Coinbase intends to develop an interface much like Facebook Connect, which would make it easier for users of dApps to sign up and log in. The Coinbase login would enable customers to log in to different Coinbase products in the ecosystem they are building, without having to enter multiple usernames and password.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.