Bridging Onchain and Offchain Worlds

During the TED Talk "Is There a Real You?" by Julian Baggini, he compares individual identity to a waterfall—always in motion yet consistent in form. This idea ties nicely with the core of the Web3 identity framework, showing the dynamic yet structured nature of our online selves.

Now, why should you care? Because as we move from the old internet to a decentralized one, your online identity is becoming your new portable passport, affecting everything from how you interact online to your credibility and even your finances.

To understand this continuous evolution of digital identities, let’s first get familiar with two core terms: Onchain and Offchain. Onchain refers to actions and data recorded directly on the blockchain, known for transparency and immutability. Offchain, on the other hand, pertains to actions and data handled outside the blockchain, allowing for more privacy and speed.

The onchain aspects form the solid base of our Web3 identity, securely held on the blockchain, providing a verifiable and immutable record of our interactions. This trust is fundamental in a decentralized digital world, where credibility and verifiability are paramount.

Offchain elements add more to our digital identity, covering our online actions like social media connections and forum discussions, which aren't recorded on the blockchain but are crucial as they provide a broader picture of who we are online.

Let’s discuss a few onchain components that may make up our digital identities.

Onchain components:

1. Identifiers:

   • Services like Ethereum Name Service (ENS) replace complex blockchain addresses with human-readable identifiers, serving as portable usernames. For instance, instead of sending funds to a long string of numbers, you could use a simple name like 'john.eth'.

     Note: ENS isn't confined to ".eth" domains and it can also facilitates offchain naming solutions.

   • Decentralized Identifiers (DIDs) offer a self-sovereign identity to individuals or entities, enabling the owner to verify control over them without needing a centralized registry or intermediary. DIDs find use in various digital interactions like authentication, authorization, and the provision of verifiable credentials.

2. Profile Picture (PFP): Your digital avatar in the crypto space, often represented by unique digital assets like Non-Fungible Tokens (NFTs). While it may just be a JPG, it carries significant utility!

brantly.eth

@BrantlyMillegan

the utility is you have a unique web3 pfp that, depending on the specific one, may carry with it various social keanings. I think of it as web3 fashion. social communication and signaling based on how you present yourself to others is immensely useful

4

12:24 PM • Oct 28, 2023

3. Onchain Interactions: Activities including transactions, engaging with smart contracts, interacting with DeFi platforms, and asset holdings conducted directly on the blockchain.

4.      Community and DAO Memberships: Participation in decentralized autonomous organizations or other blockchain-based communities.

 5.  Digital Creations: Any digital assets/ projects/ artwork created and recorded on the blockchain.

 6.  Onchain Social Networks / Social Graphs:

• Ethereum Follow Protocol (EFP): proposes a protocol for managing lists and following other Ethereum accounts, enabling Ethereum accounts to create and manage such lists with tags for different purposes. EFP could be used for various purposes like tracking important smart contracts, following historically significant accounts for activity, following DeFi activity for trading purposes, and more.

• Farcaster: A protocol for building decentralized social networks, allowing developers to create applications that can interact with one another in a decentralized manner. Unlike centralized platforms, Farcaster enables users to have control over their data while interacting across a network of decentralized applications.

Now let’s go over a few offchain components.

Offchain Components:

1. Centralized Social Media Profiles: Activities and engagements on centralized social media platforms such as Twitter, LinkedIn, or others.

2. Centralized Email Providers: Professional and personal interactions carried out via email.

3. Subscription Services: Subscriptions to online platforms, services, or memberships in various online communities.

4. Online Forums and Discussions: Participation in online discussions, forums, or other interactive platforms.

5. Web2 Authentication/Single Sign-On (SSO): Traditional login methods for various online platforms and services.

6. Personal Websites and Blogs: Personal online spaces for expression, sharing opinions, or showcasing work and achievements.

Merging Offchain and Onchain

A notable trend is emerging where offchain components are being integrated onchain to forge a more comprehensive digital identity. This is happening alongside a shift from centralized platforms to decentralized platforms, as seen with the rising popularity of decentralized social media.

Dan Romero

@dwr

Farcaster protocol at an all-time high in usage

583

1:13 PM • Oct 26, 2023

Over time, we might see a scenario where most offchain components migrate to the blockchain making our digital identities on chain much more valuable and comprehensive, reflecting a more accurate and verifiable representation of our online interactions and personal attributes.

Below are a few projects that are implementing offchain actions onchain.

Note* Some of these protocols can be used for actions happening fully onchain as well.

• Verification Tools: Attestations & Credentials: Attestations are claims made about entities, while credentials act as tangible proof of an individual's qualifications. These instruments are pivotal in identity verification. For instance, the Ethereum Attestation Service (EAS) facilitates attestations both on and off the blockchain. EAS develops various templates to verify areas such as identity and who owns certain assets. Meanwhile, Proof of Attendance Protocols (POAPs) offer digital badges as recognition for attending events or contributing to projects, acting as onchain evidence of one's participatory milestones.

• 

  Ethereum Name Service (ENS) Text Records: allow users to associate human-readable text with their Ethereum addresses, extending the utility of blockchain identities. They can store arbitrary text data, enabling the linking of social media profiles, messaging handles, or any pertinent information to an Ethereum address. Adding text records is straightforward via the ENS Manager interface, where users can specify a key and the corresponding value.

•       Sign In with Ethereum (SIWE): An authentication method allowing users to log into web applications using their Ethereum address, promoting a decentralized identifier and reducing reliance on traditional centralized identity providers like Google or Facebook for login purposes.

Authenticating the Human behind Digital Identity with Proof of Personhood

Amidst all the Onchain and Offchain elements shaping our digital identities, there's a critical piece often overlooked: the need to verify that there's a unique human behind each digital identity. That's where proof of personhood comes in. This concept aims to affirm that a singular, real human is tied to a digital identity, enhancing the trust and credibility that the blockchain already provides.

In an Onchain context, proof of personhood enhances activities like DAO voting and special NFT drops. It ensures one vote per human in DAOs and gives real people a fair shot at owning rare NFTs. This proof also confirms that your actions are human-made, boosting their credibility.

Authenticating the human element behind digital identities remains an ongoing challenge in the digital world. While some platforms lean into biometric data, capturing unique physical or behavioral attributes, others employ distinct methods, weaving together a robust network of trust rooted in mutual verifications and connections.

Crafting a Unified Digital Identity

The components discussed in this article are just a snippet of the infinite onchain and offchain elements that contribute to our digital identity. As offchain elements find their place onchain, a more trustable digital footprint emerges, which could significantly benefit society. It can create a new level of trust and verification in digital interactions, which is crucial in a world where identity theft and misinformation are rampant.

In the near future a decentralized identity could simplify verification processes across various sectors, from finance to education. Imagine a world where your blockchain-based identity can quickly authenticate your academic credentials to a potential employer or confirm your financial standing to a lender.

However, this blending of onchain and offchain worlds also raises important considerations regarding security, privacy, anonymity, and pseudonymity. There's a balance between transparency and privacy, each with its own set of implications. While the blockchain offers a level of transparency and verifiability, it also poses challenges to privacy which could be exacerbated as more offchain elements migrate onchain.

In upcoming discussions, we'll discuss security, anonymity, reputation and pseudonymity in digital identities, discovering how they interplay with the onchain and offchain components, and how they can be navigated to create a safer digital environment for all.