The development of a decentralized identity solution on the Bitcoin network by MicroStrategy has been announced by Michael Saylor, the company's executive chairman. MicroStrategy Orange is the name of the solution presented at the Bitcoin For Corporations event on May 1. This solution aims to create trustless, tamper-proof, and long-lasting decentralized identities solely using the public Bitcoin blockchain.
According to an unofficial draft of the solution provided by MicroStrategy on GitHub, the primary goal is to provide trustless, tamper-proof, and long-lived decentralized identities through the sole use of the public Bitcoin blockchain. Decentralized identifiers (DIDs) will enable pseudonymity by separating real-world identities from Bitcoin addresses and transactions.
MicroStrategy Orange consists of several components: Orange Service, Orange SDK, and Orange Applications. Orange Service allows users to issue DIDs to their personnel and deploy applications. Orange SDK and Orange Applications offer the necessary tools for customization and integration on various devices.
MicroStrategy has already introduced an application called “Orange for Outlook,” where digital signatures are included in emails to authenticate the sender's identity. When users accept an invitation email signed by MicroStrategy’s DID, it initiates the onboarding process, where a unique DID is created along with a public and private key pair for each user.
The user's DID and public key are stored on the Bitcoin network, allowing them to invite personnel to create their digital identities. Looking ahead, MicroStrategy plans to expand the capabilities of its Orange applications to other messaging platforms, social media networks, and various applications in e-commerce, enterprise, and fintech sectors.
MicroStrategy's strategy to develop a Bitcoin-based identity solution comes after a period where the company reported a net loss of $53.1 million in the first quarter. This figure does not take into consideration the substantial increase in the market value of their Bitcoin holdings. Currently, MicroStrategy holds 214,400 Bitcoins valued at $15.2 billion, representing a 65% appreciation in value over the quarter.
Previous projects like BitID, ION, Worldcoin, and Ecuador's Sistema de Dinero Electrónico have explored Bitcoin as an identity solution, initiating various attempts to establish decentralized identity systems using blockchain technology. However, MicroStrategy's endeavor marks a significant step in utilizing Bitcoin for decentralized identity applications.
