Tech
Next Possible Use Case for IOTA: Blockchain Identity in China
- China’s Blockchain Service Network (BSN) has launched its RealDID system.
- With IOTA’s Tangle technology, the protocol can effectively power the RealDID system.
China’s Blockchain-based Service Network (BSN) has announced the development of RealDID, a decentralized identity system with real names, which uses blockchain technology to verify the identity of its 1.4 billion citizens. This system reflects the next possible use case for IOTA.
RealDID implementation and concerns
As highlighted in a recent relationshipBSN, operated by China’s National Information Center in collaboration with major technology players such as China Mobile and China UnionPay, introduced RealDID as the world’s first nationwide decentralized identity system.
This system allows users to register and log in to websites anonymously using decentralized identifiers (DIDs) and private keys. The goal is to ensure that personal information remains disconnected from business data and transactions, addressing data privacy concerns.
The RealDID initiative is a response to the Chinese Ministry of Public Security’s push for greater credibility and public oversight. In particular, major Chinese social media platforms, including WeChat, Sina Weibo, Douyin, Kuaishou, Bilibili, and Xiaohongshu, require content creators with substantial followings to publicly display their real names or those of their financiers.
Ultimately, RealDID aims to provide a more secure and private alternative for users, in line with global trends in digital identity management.
The country’s blockchain innovations are making waves on the global stage. CoinDesk reported on a bipartisan U.S. bill aimed at banning federal government officials from using Chinese-made blockchains and transacting with certain companies, citing potential national security risks and data protection concerns. The geopolitical implications of China’s adoption of blockchain technology for citizens’ identities are clear, with concerns over data access and privacy taking center stage in the conversation.
However, the geopolitical situation surrounding China’s blockchain technology is rapidly expanding. This is evidenced by the recent removal of the China Institute of Forensic Sciences from a trade sanctions list by the United States, which reflects the subtle dynamics between the two nations.
Meanwhile, China’s efforts to establish a digital yuan and a similar central bank digital currency (CBDC) continue gaining momentumchallenging the dominance of the US dollar in global transactions.
The contribution of the IOTA Foundation
IOTA stands out from traditional blockchains thanks to its Tangle technology. Unlike conventional blockchains that are based on a sequential chain of blocks, IOTA’s Tangle works as a directed acyclic graph (DAG). This structure allows for faster transaction confirmations and scalability, making it an ideal candidate for China’s RealDID.
IOTA, recently introduced Identity 1.0, a decentralized identification mechanism that gives users full ownership and control of their digital identities. Tested extensively on the Shimmer testbed, this update revolutionizes DID generation, updating, and conflict resolution by incorporating aliased output for interaction with other Layer 1 network hosting tokens.
Additionally, IOTA’s Stardust protocol update, seamlessly integrated into the broader IOTA network, introduces a powerful tokenization framework. Users can now create distinctive tokens directly on the Layer 1 Tangle, expanding IOTA’s capabilities beyond simple tokenization to advance the digital space.
IOTA is recent expansion in the Middle East, Africa and Asia, marked by the creation of a foundation in Abu Dhabi, demonstrates a deeper commitment to promoting a globally compliant and multifaceted blockchain ecosystem.