MicroStrategy plans to construct a decentralized identity platform founded on Bitcoin.
MicroStrategy, a leading business intelligence firm, has unveiled plans to launch a decentralized identity solution on the Bitcoin network. The solution, named ‘MicroStrategy Orange,’ aims to provide trustless, tamper-proof, and durable decentralized identities by utilizing the public Bitcoin blockchain. MicroStrategy executive chairman Michael Saylor announced the solution at the company’s Bitcoin For Corporations conference on May 1. Through this solution, decentralized identifiers (DIDs) will enable pseudonymity, ensuring that real-world identities are not linked to Bitcoin addresses and transactions.
MicroStrategy Orange consists of three components: Orange Service, Orange SDK, and Orange Applications. The Orange Service allows users to issue DIDs to their personnel and deploy applications, while the Orange SDK and Orange Applications provide tools for customization and integration on various devices. MicroStrategy has already developed an application called “Orange For Outlook,” which incorporates digital signatures into emails, enabling receivers to authenticate the sender’s identity.
To onboard users, accepting an invitation email signed by MicroStrategy’s DID generates a unique DID and a public and private key pair for each user. The user’s DID and public key are stored on the Bitcoin network, allowing them to invite their personnel to create their own digital identities. In the future, MicroStrategy plans to expand the capabilities of its Orange applications to other messaging platforms, social media networks, and various applications in the e-commerce, enterprise, and fintech sectors.
It is worth noting that MicroStrategy is not the first company to explore Bitcoin as an identity solution. The BitID project, launched in 2016, aimed to simplify identity verification for online platforms while ensuring user privacy. However, this project is no longer active. Additionally, ION (Identity Overlay Network) is an autonomous identity system that operates on a Sidetree-based DID network, incorporating the Bitcoin blockchain and IPFS. Other blockchain networks, like Worldcoin, also utilize similar tactics to establish a global digital identity and financial network.
MicroStrategy’s announcement follows the company’s report of a net loss of $53.1 million for the first quarter. However, this figure does not account for the significant increase in the market value of their Bitcoin holdings. Currently, MicroStrategy holds 214,400 Bitcoin, which appreciated by 65% over the quarter, valued at $15.2 billion at that time. Analysts predict that MicroStrategy’s stock will rise by 16% following this announcement.
