Hello, and welcome to another edition of Overbit Insights.
Our first story of the day is the culmination of a four-year development cycle led by Microsoft and its Decentralised Identity Team. The final product is the ION Decentralised Identifier (DID), a new network that utilises the Bitcoin blockchain to authenticate online ID's.
The ION Network is designed to replace many of the centralised, third-party authentication layers, in which a user's credentials are split between thousands of different companies’ databases, with no sort of interoperability whatsoever. With ION, the goal is to have users share their login credentials across many various providers, allowing them to avoid vendor lock-in and non-portability of data between different services.
Though possibilities are really endless with this new solution, the easiest way to think about it is having a single login for all your important accounts: email, social media, and more, that you and you alone truly own. Safe to say, this is a massive leap for the digital world and the digital economy.
As we go forward, an exciting trend to watch will be projects like ION, which bootstrap themselves off of the Bitcoin network. As the chain with the most security and highest hash-rate, it's safe to say that more developers will find ways to leverage the Bitcoin blockchain's power for other users than just sending financial transactions.
This week's tale concludes with Chainalysis, a blockchain monitoring company whose clients include federal investigators, cryptocurrency exchanges, and even financial firms, raising $100 million in a round that demonstrates the growing need for cryptocurrency enforcement infrastructure.
As the market matures, more and more governments are looking to firms like "Chainanalysis" to provide blockchain analysis, track Bitcoin-linked crime rings, and assist exchanges in turning to it to help to vet and sometimes freezing stolen crypto. Though many crypto participants like to flout cryptocurrency's existence outside the mainstream of finance, the surge of firms like Chainalysis indicate the financial world intends to treat cryptocurrencies with just as much (if not more) scrutiny.
Companies like Chainalysis provide critical blockchain analysis that regulators and investors are looking for to flag wallet addresses and blacklist coins. Currently, crypto transfer records are publicly accessible but difficult for laypeople to decode without background, and these sophisticated tools help identify problem areas.
It's important to remember that while Cryptocurrencies provides unique freedom, they also offer unique insights to prior transactions that cash wouldn't. Criminals should take note that transacting in Bitcoin is not a free pass to avoid regulators.
Thank you for reading this week's edition of Overbit.com Insights, and be sure to check out Overbit for all your trading needs.