Identity in Web3
What comes to mind when asked the question: “Who are you?” Your first thought probably isn’t your digital identity. However, when asked about another person, (e.g., “Who is X?”), the first thing that comes to mind is increasingly likely to be that person’s Instagram, Twitter, or another online medium where they express themselves. How one represents themselves on the Internet is increasingly important as the world shifts to the metaverse and digital platforms.
Depiction of one’s self on Web2 applications is generally about showing the highlight reel of your life — it lacks transparency and truth. Web3 takes a more holistic view of identity, one that includes actual interactions: examples include DAO participation, assets, writings, transactions, and community contribution. As user time spent online shifts from Web2 to Web3, re-developing identity on new platforms can be laborious and a bit confusing. However, many individuals are fed up with Web2’s gross monetization of data and invasion of privacy and therefore are willing to make the switch. The blatant misuse of consumer data by power hungry corporations has finally tipped the scale for many users to onboard into the metaverse.
Web3 opens up so many possibilities for identity, especially when compared with Web2 platforms like Instagram and Facebook. Whereas these platforms are distinguished by photos and text, Web3 allows for a much broader definition of the concept of digital identity. NFTs owned, participation in DAOs, in-game reputations, and digital attributes are all part of the representation of one’s self in the metaverse. In Web2, users must stay within the lines of what the platform allows. The metaverse offers a more self-designed concept of identity — one that’s more authentic and creative, less status-based, and increasingly community-oriented. Users are able to control their own data rather than having corporations monetize it unbeknownst to the user. Blockchain allows individuals to monetize their data if they want to, rather than having a middleman take all of the profits on the sale of their personal information.
Individuals don’t have to give up any of their Web2 persona and reputation when building their Web3 identity repertoire. In fact, synergies can arise from the combination of Web2 and Web3 identity. Many users choose to supplement their Web3 identity with their centralized Web2 social platforms such as Twitter and Instagram. Twitter in particular remains an integral part of the Web3 community, despite the fact that it’s a centralized platform.
Amazing new projects — both decentralized and centralized — are helping Web3 users to better create and refine their virtual identities on-chain in a variety of ways. Many emerging companies are focused on identity sectors such as ownership, fashion, curation, and writings. A few broad examples are:
DAOs inform how one presents their identity on-chain and associates an individual with a like-minded community
Protocols leveraging large identity data streams allow for seamless information exchanges both cross-chain and between Web2 and Web3
Metaverse fashion companies allow users to creatively design and display unique pieces from their digital wardrobe
Whether they’re working with data or designs, companies helping to shape identity are crucial for the development of the metaverse ecosystem. Below are a few protocols that are positively influencing the world of identity in Web3 in unique ways.
Ceramic is helping to provide a solution to abstract concepts of identity in Web3. The protocol, branded as a “decentralized content computation network,” recently raised a $30M Series A led by Multicoin Capital and Union Square Ventures. Using IDX, Ceramic’s multi-platform identity protocol, users can represent themselves across multiple platforms in a decentralized way. Essentially, their “identity” becomes an aggregate of information compiled from their assets or contributions on different protocols. Within a Web3 identity, a user can have a profile, crypto accounts (such as Bitcoin and Ethereum), Web2 social accounts, blog posts, photos, and more. Ceramic offers a representation of a combination of identity in both Web2 and Web3.
This seamless representation of identity in the aggregate has massive social implications. One positive is that users are able to shape their identity by showing a more holistic view of their accounts and holdings. Instead of just posting pictures on Instagram, users can now share assets that help tell their story, such as NFTs and DeFi tokens.
Just one profile on one platform is hardly representative of everything a human being is. Using multiple platforms doesn’t fully encapsulate identity either, but it’s a start. As the world shifts increasingly to digital solutions, we can get closer to expressing ourselves in a more complete and beautiful way. These solutions help close the gap between who we are at our core and who we are in Web3.
Red DAO is focused on the budding digital fashion ecosystem in Web3, and already has 3,700 ETH contributed. The organization spun out of Flamingo DAO, an early and successful project focused on acquiring top NFTs. When Dolce and Gabbana launched their NFT collection, Red DAO acquired many of the most expensive assets at the auction. The auction itself generated over $5.7M, proving the excitement around digital fashion and its potential. Luxury digital fashion will continue to make a splash in Web3 as users look to display their style — and wealth — in the metaverse.
Another amazing company developing identity expression in the world of Web3 is Space Runners, a metaverse fashion NFT brand. Fashion is so intrinsically woven into our physical society, so it isn’t a surprise that this form of self-expression is exploding in the metaverse. Using augmented reality, Space Runners works with popular brands and celebrities to launch NFT fashion items that can be plugged into games and worn in the metaverse. The company’s first NFT collection dropped recently and sold out in just 9 minutes. Fashion is an integral part of identity in the physical world, but translating it to Web3 platforms can be tricky. Web3 fashion companies like Space Runners offer a solution to this by enabling users to create a more nuanced and accurate representation of themselves in the metaverse.
RTFKT produces digital sneakers and collectibles for the metaverse in the form of NFTs and was acquired by Nike last December. Beyond sneakers, RTFKT has dropped virtual hoverboards, jackets, and jeans, among other items. The company even allows users to digitally “try on” their collectibles via Snapchat, an example of collaboration between Web2 and Web3 identity platforms. The expansion of popular brands such as Nike and Adidas into the metaverse illustrates the strength of digital fashion and the synergies that can emerge between physical and digital fashion. Last year, one of RTFKT’s hallmark drops sold out in seven minutes, generating $3.1M through 600 pairs of sneakers. As users look to flex their style and curate a collection of sneakers in the metaverse, they’ll increasingly turn to RTFKT’s creative and collaborative drops.
The Fabricant is a Netherlands-based digital fashion house focused on “building the wardrobe of the metaverse.” Users can create, trade, and wear digital fashion via The Fabricant’s studio. Within the studio, you can choose a template for a unique garment designed by The Fabricant, and then customize it to your taste with different material, color, and form. The protocol also offers users the option to create a custom-made piece in collaboration with the best artists working in fashion, 3D art, and graphics. The process mirrors a traditional custom-made design experience, except without the steep prices and long manufacturing times. The Fabricant — along with most digital fashion companies — also offers environmental and ethical improvements to an industry mired by scandal. Because traditional fast fashion companies look to churn out as many items as possible, they often ignore negative impacts on the planet and their employees. Therefore, as people shift their spending habits to allocate more income to digital fashion, they in turn promote more sustainable methods vs traditional fashion.
There are so many other amazing projects making waves in identity in Web3, such as ENS, IDX, RabbitHole, POAP, Unstoppable Domains, and more. This article would be pages long if I went through them all, despite the fact that Web3 identity is a relatively new and emerging category. Of course, the space isn’t perfect — there are many issues in particular with tokenizing communities, gatekeeping, and exclusivity, which Gaby Goldberg analyzes in The Social Token Paradox. Furthermore, many individuals join a DAO or purchase an asset solely for “bragging rights” or insider information. However, the space is rife with opportunity and I’m excited to see more protocols pop up that are positively leveraging identity in the metaverse. As a society hyperfocused on presenting ourselves to the world in the best possible light, it’s important to remember to create and maintain healthy and authentic digital identities. And Web3, at its core, is an extremely conducive environment to this.