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Ethereum ERC725 – What is it?

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In the world of blockchain technology, decentralized apps are one highly promising prospect. They have the potential to completely oust third-party operating platforms that work on a centralized concept. There has been one consistent problem when it comes to blockchain technology-based platforms. User identity management is a crucial aspect for decentralized apps. As things work right now, third parties have to be entrusted to manage user identity. That is the problem that ECR725 identity will resolve.
Fabian Vogelsteller came up with the ECR725 identity standard. He is the creator of the ECR20 token which sees comprehensive use in the blockchain landscape. The ECR725 identity standard was created last year, on the 2nd of October. Since then, it has seen adoption by numerous blockchain based projects. They have incorporated the ECR725 in a bid to decentralize the identity standards in the peer-to-peer marketplaces.
Identity Problem Can Be Solved By ECR725
One of the most major projects to incorporate the ECR725 is Origin Protocol. They’ve highlighted the advantages of using a blockchain based identity standard. It offers a lot of benefits for trustworthiness and user reputation management in peer-to-peer marketplaces.
A decentralized app, which functions like Airbnb, would need tenants to identify themselves. They don’t want to risk damage to their property nor do they want to be victims of fraud. The current situation in the blockchain world sees decentralized apps relying on Oracle platforms or trusted third parties. Something like ChainLink links to third parties to make this possible.
Vogelsteller has stressed a lot on the need to have a standardized identity management system in the new landscape. Right now, everybody will collect information about you separately so that they know who you are. Once there’s a standard set, there will no longer be a need to store personal information. The current way of going about it is inefficient. It results in over collection of information. Until a better system comes into place, that is how it will be. The ECR725 is slated to be that better system.
How the ECR725 Works
Origin Protocol is in the works to implement the ECR725 identity standard. The integration of it could mean that users looking to verify their identity will issue a new identity contract, which will have a valid claim.
The issuer will then give the user a unique cryptographic signature. This will prove that the user indeed controls a specific email, address, phone number or even biometric data. This will be added to the identity contract.
For instance, if a person is using something like Airbnb in the blockchain world, the user will try to rent a property using a listing contract. This listing contract will be able to verify that it’s valid on the contract, which was issued by the decentralized application. This would in turn mean that the transaction can take place.
Decentralized Identity & It’s Future
The ECR725 identity standard has the potential to make an ecosystem that can allow contracts to accept claims using any blockchain platform. It will facilitate the interoperable and distributed identity for any project across the blockchain network. If something like this is employed by the US Postal Service, it could be revolutionary. The USPS could verify the user address automatically even before there’s any interaction with the user.
Of course, it goes without saying that the ECR725 is a new prospect. As promising as it is, it is still in its most early stages. It will take time to develop it and integrate it properly with projects like the Origin Protocol.
There is huge potential in the ECR725 and with countries like Thailand already exploring blockchain technology based identity management, we’re very likely to see a future for decentralized identity.