Digital Identity Will Dominate the Blockchain Industry, Promises Top Trader and Analyst

Top trader and blockchain analyst has pinpointed digital identity as a rising sector that could dominate the blockchain industry in the years ahead. The analyst highlighted the opportunities therein

A top trader and blockchain analyst has pinpointed digital identity as a rising sector that could dominate the blockchain industry in the years ahead. The analyst highlighted the opportunities therein, citing adoption potential as a crucial factor toward its growth in the scheme of things.

According to the analyst, digital identity has the power to bring a massive influx of users to the blockchain ecosystem. He thinks that only gaming has the potential to bring more users on-chain than digital ID and proof of humanity.

“I think only gaming has the potential to bring more users on-chain than digital ID and proof of humanity. We could see 1-2 billion users on-chain in the next bull market if we get some good metaverse and web3 games. But I don’t think we’ll get there without digital ID and proof of humanity. We need that to get billions of users on-chain. And we need that to unlock the true potential of blockchain technology.,” the analyst said.

The analyst noted that the security proof layer of the blockchain is of utmost importance, justifying why some top blockchain establishments are focusing in that direction.

Digital Identity Sector Undervalued

In the meantime, the analyst considered the current value of the digital identity sector, noting that it is undervalued. Beyond its obvious business and market potential, he anticipates a substantial amount of onchain value will be unlocked within the digital ID space.

As an example, he mentioned the possibility of bringing the 385 million people in the US onto the blockchain through digital IDs and the immense value that could create for the entire sector.

“It’s a huge opportunity and I think it’s an area that is still undervalued by the market. We are already seeing some interesting developments in this space, with companies like Hyperledger and Worldcoin working on digital identity solutions. I think we will see a lot more activity in this sector in the years to come.,” the analyst stated.

Related: VeChain Awarded US Patent for Blockchain-Based Identity Authentication

While acknowledging that governments might play a role in mandating the adoption of digital ID, the analyst stressed the inherent advantages of these solutions, including the use of zero-knowledge proof to address privacy and security concerns.

The widespread implementation of blockchain-based digital ID across various industries would generate significant activity within the ecosystem, further supporting the analyst’s assertion that it could indeed become the next major trend in blockchain and cryptocurrency.

What is the Analyst’s Outlook on the DeFi Market?

In addition to digital ID, the analyst also believes the decentralized finance (DeFi) market is currently underpriced, especially when considering the large pools of capital that are likely to enter the ecosystem.

Related: Cardano’s Prism Becomes Hyperledger Identus: A Decentralized Identity Framework

The analyst believes the tech environment is ready and prepared for such capital pools to blend in and boost the DeFi market’s value. Such a scenario will pump massive liquidity into DeFi, possibly reigniting the kind of energy the sector experienced a few years ago.

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