Ethereum co-founder Vitalik Buterin has launched a new digital identity system called “diversified identity” that believes it can protect privacy while being fair to participate in digital life.
In a blog post published Sunday, Buterin explores the promise and pitfalls of Zero Knowledge (ZK) proof of package ID, warning that even privacy systems can take serious risks if they strictly enforce one identity per person.
Ethereum (ETH) planners noted that many new digital ID projects use zero-knowledge evidence, allowing users to prove that they have valid IDs without revealing personal details. Examples include World ID, which has more than 10 million users, Taiwan’s digital ID project and the EU program increasingly adopting ZK technology.
He wrote: “ZK parcels solve many important problems, but warns that “the ID of ZK parcels is still at risk”, especially since execution of one ID per person can disrupt the pseudonym and expose the user to coercion.
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A single numeric ID may kill a fake name
A key risk to be identified is that the platform can force users into a single traceable identity, eliminating the ability to maintain separate pseudonym profiles. “In the real world, pseudonyms usually require multiple accounts,” he said.
Without this flexibility, he believes that users can find themselves in a world where “all your activities must be trapped in a public identity”, increasing the danger of government or employer surveillance.
Butling also rejected the idea of using “proof of wealth” alone as an anti-Semitic measure, saying it does not include people who cannot be paid and concentrates power among the rich. “Theoretical ideal is something in the middle, and you can get n identities at the cost of N²,” he said.
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Buterin proposes diversified ID
To achieve a flexible approach, Buterin proposed a diversified identity system without any authoritative control over identity issuance as the “best reality solution”.
He explained that these may be explicit, using socially based verification (such as circles or implicitness), relying on multiple ID providers (government documents, social platforms, etc.), so no one gains almost complete market share.
He notes that “diversified identity of any form…is naturally more tolerant.” This flexibility can help stateless individuals or people with no access to traditional IDs.
Ultimately, Batlin believes that the best outcomes will merge a person’s identity scheme with the social graphical system to guide a diverse global identity network.
He warned: “If their market share is too close to 100%, they turn the world into a one-person model,” which has poor property.
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