Digital Identity: The Rising Star in the Blockchain Industry
A top trader and blockchain analyst has recently shed light on the potential dominance of the digital identity sector in the blockchain industry in the coming years. The analyst emphasized the significance of adoption potential in driving the growth of this sector within the blockchain ecosystem.
According to the analyst, digital identity holds the key to attracting a significant number of users to the blockchain space. In fact, the analyst believes that only gaming could surpass digital ID and proof of humanity in terms of bringing users on-chain.
The analyst also stressed the critical importance of the security proof layer in blockchain technology, which is why major blockchain players are directing their focus towards enhancing security measures.
Unlocking the Undervalued Potential of Digital Identity
Despite its immense market and business potential, the analyst views the current value of the digital identity sector as undervalued. He anticipates a substantial unlocking of onchain value within the digital ID space in the near future.
For instance, envisioning the integration of the 385 million US population onto the blockchain through digital IDs, the analyst highlighted the massive value creation potential for the entire sector.
Related: VeChain Awarded US Patent for Blockchain-Based Identity Authentication
While governments may play a role in mandating the adoption of digital ID solutions, the analyst emphasized the numerous advantages of these systems, including the use of zero-knowledge proof to address privacy and security concerns.
The widespread implementation of blockchain-based digital ID across diverse industries is expected to catalyze significant activity within the ecosystem, solidifying the analyst’s prediction that it could emerge as the next major trend in blockchain and cryptocurrency.
Insights on the DeFi Market
Besides digital ID, the analyst also expressed bullish sentiments towards the decentralized finance (DeFi) market, highlighting its current undervaluation despite the potential influx of substantial capital into the ecosystem.
Related: Cardano’s Prism Becomes Hyperledger Identus: A Decentralized Identity Framework
The analyst believes that the tech landscape is primed for the entry of large capital pools that could significantly boost the value of the DeFi market. Such an inflow of liquidity has the potential to reignite the energy and excitement witnessed in the sector a few years ago.
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