MicroStrategy, a US-based enterprise intelligence and software program firm, has launched a brand new decentralized identification protocol named Orange. This progressive protocol was unveiled on the annual MicroStrategy World occasion in Las Vegas on Could 1.
Orange stands out by using a novel technique of utilizing inscriptions as Ordinals on the Bitcoin (BTC) blockchain to retailer knowledge associated to decentralized identities (DID). The protocol makes use of the Segregated Witness (SegWit) characteristic of Bitcoin. It additionally permits paperwork to be created and up to date with minimal restrictions on measurement and content material.
Why is MicroStrategy’s Orange Completely different from Different DID Options?
Throughout a section referred to as “Bitcoin Safety,” Michael Saylor, co-founder and Government Chairman of MicroStrategy, defined the thought behind Orange protocol.
“Our imaginative and prescient is to offer an web native decentralized digital identification backed by Bitcoin. So, we need to use the open customary of DID, and we need to use the open customary of Bitcoin and put the 2 collectively … Why would we use Bitcoin? Nicely, it’s fault tolerance, it’s censorship resistance, it does use probably the most superior cryptography, it’s lots higher than most individuals’s taskwork managers and this federated system. It’s distributed … It’s open, permisionless, egalitarian, ” Saylor mentioned.
Learn extra: Decentralized Identification and the Way forward for Web3: What To Know
Moreover, Saylor highlighted that the protocol ensures that the decentralized identities are managed effectively, decreasing transaction charges and block house utilization—that are frequent issues in blockchain operations. But, it’s nonetheless unclear when MicroStrategy will formally launch the Orange protocol.
Based mostly on the knowledge on their “unofficial draft” on Github, the technological basis of Orange relies on Bitcoin’s inscription. Orange embeds DID info instantly on the blockchain, in contrast to different DID strategies that depend on exterior knowledge sources or further dependencies. This technique secures knowledge permanence and integrity whereas enhancing the digital identities’ total performance and ahead compatibility.
As an illustration, the Bitcoin Reference DID technique (did:btcr) depends on referencing a URL to fetch DID doc knowledge. Such reliance can compromise the blockchain’s immutable nature if the URL content material modifications. In distinction, Orange shops further knowledge for the DID doc instantly on-chain.
Moreover, ION (did:ion) requires indexing all of the IPFS knowledge pointed to by Bitcoin transactions, which introduces extra exterior dependencies. Orange’s use of taproot script path reveal transactions permits for storing arbitrary quantities of knowledge within the witness of Bitcoin transactions by inscriptions. Due to this fact, Orange can keep away from these dependencies.
Furthermore, Orange enhances the safety measures by distinguishing between the “pockets keys” used to signal Bitcoin transactions on-chain and the “topic keys” that authenticate the DID topic. This separation permits a 3rd get together to handle a DID on behalf of its topic or require a number of signatures. Therefore, it gives an additional layer of safety and management.
Certainly, whereas blockchain-based digital identities supply the potential for enhanced verification, privateness issues stay paramount. Due to this fact, to achieve deeper insights, we consulted Wendy Lopez, Latam Development Supervisor on the Bitcoin pockets app – Xvers.
Lopez means that recursion or on-chain encryption may play a pivotal function within the growth of the Orange protocol. She highlights the distinctive side of Bitcoin—the place transparency exists alongside the potential to encrypt delicate knowledge for privateness safety.
MicroStrategy’s imaginative and prescient of integrating the Orange protocol with social networks and different digital platforms faces potential technical hurdles and person adoption challenges. Lopez factors out that fluctuating charges may create a barrier, similar to the price of utilizing the platforms themselves. Nonetheless, she believes that using UTXO and Layer 2 growth on Bitcoin (just like the Runes protocol) may mitigate prices and enhance pace.
“For the common person, at some point they gained’t know they’re being verified through blockchain. Sooner or later, blockchain will merely be the underlying know-how and clear up some issues, like verifying a human in opposition to AI,” Lopez advised BeInCrypto.
Though the promise of a very decentralized identification is evident, Lopez notes the intrigue surrounding how MicroStrategy will handle large-scale execution. That is given the inherent limitations and prices of on-chain storage in Bitcoin.
Nonetheless, the Orange protocol initiative additionally demonstrated MicroStrategy’s steady assist and involvement within the Bitcoin ecosystem. Earlier in February, Saylor mentioned the agency was pivoting to a Bitcoin growth technique.
“We view ourselves as a Bitcoin growth firm. Meaning we’re going to do every little thing we will to develop the Bitcoin community,” he mentioned in the course of the firm’s fourth-quarter earnings webinar on February 6.
MicroStrategy’s newest Bitcoin acquisition additional solidified its long-term imaginative and prescient in the direction of Bitcoin. BeInCrypto reported that MicroStrategy bought a further 122 BTC this April, totaling $7.8 million.
The transaction will increase MicroStrategy’s holdings to 214,400 BTC, now valued at over $12.35 billion. With its holdings quantity, MicroStrategy positions itself as a significant participant with over 1% of the finite 21 million Bitcoin provide.
Learn extra: What Is Digital Identification?
Nonetheless, these constructive developments haven’t but instantly impacted MicroStrategy’s inventory value (MSTR). As of Could 1, the closing value of MSTR was $1,065.03. However, over an extended timeframe, MSTR has been up about 180% this yr, rising from $685.15 on January 2 to reaching its peak of $1,919.16 on March 27.
Disclaimer
In adherence to the Belief Venture tips, BeInCrypto is dedicated to unbiased, clear reporting. This information article goals to offer correct, well timed info. Nonetheless, readers are suggested to confirm details independently and seek the advice of with knowledgeable earlier than making any selections primarily based on this content material. Please word that our Phrases and Circumstances, Privateness Coverage, and Disclaimers have been up to date.
