Coinbase Explores Decentralized Identity Solutions

In a recent interview, Coinbase’s product manager B Byrne revealed that the $8 bln cryptocurrency exchange is on track to give users a way to control their personal information. The crypto behemoth is currently working on decentralized identity solutions that will be tested on a limited number of users throughout 2019.

Striving for decentralization

While Binance, the biggest exchange by trading volume, teases its users with a new video of a soon-to-be-launched decentralized exchange, Coinbase is also stepping up its decentralization game. The San Francisco-based crypto unicorn wants to give more freedom when it comes to controlling their personal data on the web.

As of now, a 17-strong working group is focused on developing on digital identity solutions. The project will not receive any money that was raised during the mammoth-size Series E funding round that finished in October. Still, Coinbase doesn’t rule out the possibility of hiring more identity experts.

So far, they will only focus on a tiny group of tech-savvy power users of Coinbase Wallet. The company wants to connect their products with a dApp explorer in order to understand the customers’ needs in a better way.   

The importance of standardized solutions

Shyft, the company that develops Blockchain-powered ecosystems for secure data sharing, is already cooperating with the government of Bermuda in order to trial its data-sharing solutions. The company’s CEO Joseph Weinberg says that there should be a standardized model for different companies that are dealing with digital identity.

Weinberg is skeptical that Coinbase users will be in full command of their personal information. However, he admits that it could make it easier for privacy-cautious individuals to control the process of data sharing.

He also points out that there is a need for collaboration between different camps that are working on their own identity standards. These standard-building efforts would make it easier for business to make a foray into different jurisdictions.