Digital identities based on Bitcoin

MicroStrategy is now known worldwide for its aggressive Bitcoin strategy, but the company's core business actually specializes in the development of software solutions in the field of business intelligence. As part of its annual "WORLD" conference (currently taking place in Las Vegas), founder Michael Saylor's company has now launched a new protocol for decentralized identification (DID) called MicroStrategy Orange was presented. The new DID protocol aims to make use of the ordinals protocol and so-called inscriptions to store data relevant to decentralized and digital identities.

According to Saylor, the Orange protocol aims to create an "internet-native decentralized digital identity" that is supported by Bitcoin. Saylor emphasized the advantages of Bitcoin, such as fault tolerance, censorship resistance and the use of both proven and advanced cryptography, which distinguishes Orange from other DID solutions. As already mentioned, the technical basis of Orange is based on so-called inscriptions. DID information is stored directly on the blockchain, unlike other DID methods that rely on external data sources or additional dependencies. This ensures the permanent storage and integrity of the data while improving the functionality and future compatibility of digital identities.

Software giant Microsoft launched a similar project to secure digital identities using Bitcoin back in 2020 with its "ION" product. However, their approach was completely different, as the DID was not to be stored directly in the Bitcoin blockchain, but merely linked to it.

Just a few weeks ago, MicroStrategy declared that it wanted to become the first "Bitcoin development company" to actively participate in the further development and implementation of Bitcoin-based technologies in the real world. With the upcoming launch of MicroStrategy Orange, this vision is now becoming a little more tangible. Although the exact date for the platform's official launch has not yet been set, there is no question that Orange has the potential to significantly shape the landscape of digital identity. With the dramatic rise in identity theft that the US Federal Trade Commission has reported in recent years, Orange offers a timely and much-needed solution to a growing problem.

Nearly one in three Americans will be a victim of identity theft in 2022
^{FTC | Panda Security}

Nevertheless, there is also criticism of MicroStrategy's plans. Some opponents of Ordinals and Inscriptions have already voiced their opinions and even described Orange in its planned form as an "attack on Bitcoin". Especially since the topic of "identities on the Internet" is also a negative issue for some privacy maximalists. Some comments on 𝕏 included "Saylor could have built anything and now he's combining KYC with spam?" or "Personally, I'd rather build on infrastructure that doesn't require *any* identity". However, the majority of the Bitcoin community defended the project and think it's good that a company is dedicating itself to practical real-world solutions based on Bitcoin.

An attack that increases the demand and security of Bitcoin is a pretty weak attack.
^@stevexyze

It's about replacing the current identity system where people steal all the time. Stolen identities are a serious problem. This solves the problem. You literally keep your identity safe on the blockchain. This is connected to the real world, which is implemented with your identity on the blockchain. No one will ever be able to steal your assets or your identity.
^@TimTalk