Digital identity is an evolving concept and is packed with areas such as privacy, and security. “Digital identities are set to change the way users approach their online presence. In the case of non-fungible tokens (NTFs) and Metaverse digital identities are more fluid, allowing users to maintain a presence on different platforms while retaining ownership over personal content, as opposed to a third party hosting it on their platform.” Vijay Pravin Maharajan, founder, CEO, bitsCrunch, a blockchain analytics firm told FE Blockchain.
Add to that a recent report by Jupiner Research, an analyst house, revealed that the concept of digital identity presents a complex picture compared to its traditional form where the current multi-use ecosystem, depends on sharing of identity credentials.
Moreover, Elliptic, blockchain analytics revealed that NFTs are being largely used to develop communities or online through profile picture projects (PFPs). Industry experts further believed that digital identity in the Metaverse would continue to progress in meaningful ways despite challenges. According to Saurav Raaj, founder, and director, Wize, a business application service provider company, “Digital identity in the metaverse will expand to allow for interoperability within other virtual ecosystems. This will contribute to defining an individual’s true digital identity or multiple ones since there can be many.”
The blockchain platform further revealed that NFTs are being used for scams, money laundering, and by sanctioned entities. “To mitigate the financial risk in NFT, users should be aware of scammers on Discord, and Telegram posing to be official projects members offering you early access,” Shubham Gupta, co-founder, and chief product officer, STAN said.
Furthermore, digital identity is a key feature behind the appeal of the NFT, there are some security concerns associated with this concept. “Some metaverses, NFTs use “photo-realistic” avatars, while others allow users to build their avatars based on fictional 3-D characters. Metaverse will allow every person to define from scratch who they are.” Raaj noted.
For Mahajan, NFTs, virtual reality (VR), and the metaverse allow individuals to showcase their personal and professional lives differently while retaining ownership over their content.
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