Identities are an essential part of much of the things we do in the online digital world. One of the most common digital identifications is e-mail addresses and usernames.
According to Microsoft, this places identity providers in a place of control, between the digital world and the normal world.
By using decentralized identities, this image can be changed. This is because an ecosystem can be developed so that organizations and individuals can work safely, while their privacy is fully preserved. No company can see your privacy data, or part of it, without permission.
Identity Overlay Network
ION, as the system is called, is an abbreviation for ‘Identity Overlay Network’. This system is based on the Sidetree protocol, a protocol that is supported by the Digital Identity Foundation. This foundation has more than 60 members, including Microsoft and IBM.
ION is particularly attractive because of the ability to perform tens of thousands of operations per second. This overcomes a fundamental limitation of other comparable systems.
This is made possible on the Bitcoin blockchain, a blockchain that is known to be unable to handle many transactions per second. Yet Microsoft has succeeded in making it possible by applying a number of smart tricks.