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PwC Italy and blockchain consultancy SKChain Advisors are developing a digital identity solution for the European Union using blockchain technology. The product, built on the World Mobile Chain, a Layer 3 network on Coinbase’s Base , aims to provide a secure, self-sovereign identity framework that allows users to control their personal data without relying on centralized authorities. The initiative aligns with the European Digital Identity Wallet introduced under the eIDAS 2.0 regulation, which aims to standardize digital identity across the EU , according to a press release shared with crypto.news. PwC Italy and SKChain Advisors have completed a feasibility study to determine the optimal SSI framework and are now moving forward with development. The solution will act as a gateway for users to access both traditional and Web3 platforms. SSI technology is gaining traction as a way to enhance data privacy and security while complying with regulations such as the EU’s Markets in Crypto-Assets framework . According to a company note, the new digital identity product will support authentication, verification, and interactions with digital asset services. This is expected to help enterprises and consumers navigate an increasingly digital economy while ensuring compliance with evolving regulatory standards. “There has been talk for a long time about whether the EU’s digital identity scheme would use blockchain,” Rob Viglione, CEO of Horizen Labs told crypto.news. “The fact this has been confirmed is a positive step forward. The fact it’s using self-sovereign identity technology is also a positive step.” World Mobile Chain, the infrastructure supporting the project, is designed to facilitate blockchain adoption among European businesses. As a Layer 3 protocol on Base, it provides scalability and efficiency for decentralized applications. The digital ID solution will allow companies to implement blockchain-powered identity verification without compromising privacy. Viglione emphasizes the importance of privacy in digital identity systems, stating that: “Users need privacy and security guarantees. Any digital ID scheme should be using zero-knowledge proof technology to ensure data remain ‘usable but invisible.’” The product is expected to streamline digital access across various sectors while giving users greater control over their online identities.

Top trader and blockchain analyst has pinpointed digital identity as a rising sector that could dominate the blockchain industry in the years ahead. The analyst highlighted the opportunities therein, citing adoption potential as a crucial factor toward its growth in the scheme of things. According to the analyst, digital identity has the power to bring a massive influx of users to the blockchain ecosystem. He thinks that only gaming has the potential to bring more users on-chain than digital ID and proof of humanity. The analyst noted that the security proof layer of the blockchain is of utmost importance, justifying why some top blockchain establishments are focusing in that direction. In the meantime, the analyst considered the current value of the digital identity sector, noting that it is undervalued. Beyond its obvious business and market potential, he anticipates a substantial amount of onchain value will be unlocked within the digital ID space. As an example, he mentioned the possibility of bringing the 385 million people in the US onto the blockchain through digital IDs and the immense value that could create for the entire sector. Related: VeChain Awarded US Patent for Blockchain-Based Identity Authentication While acknowledging that governments might play a role in mandating the adoption of digital ID, the analyst stressed the inherent advantages of these solutions, including the use of zero-knowledge proof to address privacy and security concerns. The widespread implementation of blockchain-based digital ID across various industries would generate significant activity within the ecosystem, further supporting the analyst’s assertion that it could indeed become the next major trend in blockchain and cryptocurrency. In addition to digital ID, the analyst also believes the decentralized finance (DeFi) market is currently underpriced, especially when considering the large pools of capital that are likely to enter the ecosystem. Related: Cardano’s Prism Becomes Hyperledger Identus: A Decentralized Identity Framework The analyst believes the tech environment is ready and prepared for such capital pools to blend in and boost the DeFi market’s value. Such a scenario will pump massive liquidity into DeFi, possibly reigniting the kind of energy the sector experienced a few years ago. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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