Vitalik Buterin warns that single digital IDs risk pseudonymity loss and advocates pluralistic ID systems to protect privacy and ensure fair access.
Vitalik Buterin, the co-founder of Ethereum, has proposed a novel digital identity system known as “pluralistic identity.” He contends that this system has the potential to safeguard privacy while facilitating equitable participation in the digital realm.
Buterin published a blog post on Sunday examining the potential hazards of zero-knowledge (ZK) proof-wrapped IDs. He cautioned that even privacy-preserving systems can pose significant risks if they strictly enforce one identity per individual.
The Ethereum mastermind observed that numerous new digital ID initiatives employ zero-knowledge proofs to enable users to verify the validity of their IDs without disclosing personal information.
Examples include the digital ID project in Taiwan, World ID, which has surpassed 10 million users, and European Union initiatives increasingly incorporating ZK technology.
He wrote that “ZK-wrapping solves a lot of important problems.” However, he also cautioned that “ZK-wrapped ID still has risks,” particularly because enforcing one ID per person can undermine pseudonymity and expose users to coercion.
The use of individual digital identifications may eliminate pseudonymity.
Buterin identified a significant risk: platforms could compel users to adopt a single, trackable identity, removing the ability to maintain separate pseudonymous profiles. “In the real world, pseudonymity typically necessitates the maintenance of multiple accounts,” he stated.
He contended that the absence of this adaptability could result in users being trapped in a scenario where “all of their activity must de facto be under a single public identity,” increasing the risk of government or employer surveillance.
Buterin also opposed employing “proof of wealth” as an anti-Sybil measure, asserting that it excludes individuals unable to pay and concentrates power among the affluent. “The theoretical ideal is a compromise, in which N identities can be obtained at a cost of N²,” he stated.
Buterin suggests pluralistic identification systems.
Buterin proposed pluralistic identity systems as the “most realistic solution” to accomplish a flexible approach in which no single authority controls identity issuance.
He clarified that these could be explicit, utilizing social-graph-based verification such as Circles, or implicit, utilizing a variety of ID providers, including government documents, social platforms, and others, to prevent any single ID from gaining a near-total market share.
He observed that “any form of pluralistic identity… is naturally more error-tolerant” and that this adaptability benefits stateless individuals or those unable to access traditional IDs.
In the end, Buterin contended that the most optimal result would be the combination of social-graph systems and one-per-person identity schemes to establish diverse, global identity networks.
“He cautioned that if their market share approaches 100%, they will transition the world to a one-per-person model with inferior properties.” He emphasized that only a pluralistic identity can balance privacy, inclusivity, and resistance to abuse.
