A major business intelligence company called MicroStrategy has announced its major plan to build a decentralized identity system on the Bitcoin (BTC) network. This new platform, called “MicroStrategy Orange,” wants to change the way identity is managed by using blockchain technology.
The news was shared by Michael Saylor, executive chairman of MicroStrategy, at the company’s Bitcoin For Corporations meeting on May 1. Saylor made it clear that MicroStrategy Orange’s main goal is to create decentralized identities that can’t be hacked or trusted, and that last for a long time. This will only be possible by using the security and openness of the public Bitcoin blockchain.
Bitcoin, Secure Data Storage
Based on information MicroStrategy shared, the solution will use ordinal-based inscriptions to safely store and recover data. Decentralized identifiers (DIDs) will be used to protect users’ privacy by separating their real-life names from their Bitcoin addresses and transactions.
MicroStrategy Orange is made up of three main parts: Orange Service, Orange SDK, and Orange Applications. The Orange Service lets users give their employees DIDs and set up custom apps. The Orange SDK and Orange Applications give users the tools they need to make sure their apps work seamlessly on all kinds of devices.
One app being worked on right now is called “Orange For Outlook,” and it will add digital signatures to emails to make them safer. Receivers can confirm the sender’s identity through this app, which starts a streamlined training process that gives users their own unique DIDs and cryptographic key pairs.
Looking ahead, MicroStrategy wants to add more features to its Orange apps so that they can work with more messaging platforms, social media networks, and e-commerce, business, and fintech apps.
It’s not the first time that MicroStrategy has looked into decentralized identity options. Earlier projects, like the BitID project that started in 2016, tried to make it easier to prove your identity online, but they are no longer running. Blockchain technology, such as the Bitcoin blockchain, is also used by groups like ION (Identity Overlay Network) to build self-sufficient identity systems.
There is a well-known example of a government-backed digital currency that is tied to a national ID system that is not related to blockchain. It is called the Sistema de Dinero Electrónico. However, Ecuador’s plan ran into problems and was finally shelved after state banks spoke out against it.
MicroStrategy’s news comes after financial reports showed a net loss of $53.1 million for the first quarter. However, these numbers don’t take into account how much the company’s Bitcoin holdings have grown. With 214,400 Bitcoin worth $15.2 billion in the company’s possession, MicroStrategy stays resolute in its dedication to blockchain innovation and the growth of decentralized solutions.
