Coinbase to Integrate Digital Identity Tools Due to Its New Acquired Company
Coinbase is now owning Californian startup Distributed Systems, as reported on Wednesday through a blog post.
The digital identity startup, Distributed Systems, was bought by the cryptocurrency exchange giant Coinbase. As B Byrne, Coinbase Identity Project Manager, mentioned in the statement, the company’s new firm has already worked with “decentralized identity solutions“. The five-person team will now join the Coinbase department dealing with digital identity tools.
Byrne elaborated that blockchain will let individuals have full control over their digital identities and ensure the privatization of personal information.
Byrne went on explaining:
“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 decentralized 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,” he added.
However, Coinbase seems to not rush to integrate digital identity features, as Byrne wrote. According to him, the exchange is set to “deliberate about how and where we apply this technology.”
As part of the company’s exploration of blockchain technology, the exchange will focus on anonymity, intimacy, and other related issues.