“Why did you buy an NFT?” Polls circulating the internet lately still show purchasers mostly wanted to “make money.” Investing in art is as old as anything, so this should come as no surprise. Whereas this certainly will continue as a major use case for NFT ownership, two more emerging use cases are becoming apparent: NFT keys and Digital IDs based on NFTs. We will address NFT keys in a subsequent article, but here we address the use case of NFT ownership to support emerging Web 3.0 Digital IDs.
The centralized Web 2.0 authentication / identification system is invoked every time you create an account on a website, and provide private information or login credentials. There are many inherent issues with this identification / security model including the forfeiture of private data, and the login information to an external party. This old-school model is rapidly being replaced with Web 3.0 theories.
Web 3.0 seeks, among many decentralized aspirations, an independent Digital ID with a high degree of anonymity. A decentralized Digital ID, theoretically, would function as a placeholder of personal identifiable information only shared with entities you want to share it with. These ideas are in such a state of flux it’s hard to nail down the exact trajectory of the decentralized Digital ID, but one of the core tenants is tying the ID to blockchain transactions, and more specifically, NFTs.
"By stacking many NFTs, you are metaphorically writing the password, character by character (image by image, token by token), that comprises your unique identity. "
Imagine your uniqueness and identifiable digital presence as a series of digital assets that are owned by your crypto wallet / addresses that only you have? An immutable NFT from a solidly developed and tested smart contract is just one piece of the puzzle that makes you, you. By stacking many NFTs, you are metaphorically writing the password, character by character (image by image, token by token), that comprises your unique identity.
The implications of being able to go from website to website, virtual world to virtual world, real world to real world locations with this pseudo anonymity (as the transactions are public) enable the holders much more flexibility. The NFTs are unique over other blockchain tokens in many ways, but they fundamentally, graphically declare the holder’s assets as images. Furthermore, individual NFTs, can be stacked to increase the assurance score of the identity and what that identity is permitted.
If you believe that NFTs will inevitably lead to supporting Digital IDs in Web 3.0, then start collecting them. Soulday is one token prepared to help support this notion, and is a bonus to the collection of the digital art asset itself.