After Facebook-Cambridge Analytica data scandal, internet privacy has become one the most discussed topics on the internet. Many users deactivated their accounts on social media, but this was just a temporary solution. Governments impose sanctions on companies to prevent this problem. But unfortunately, these preventions could not bring real results.
Blockchain can provide a solution as it can help individuals to maintain complete control over their digital identities ensuring that their personal information remains safe.
Coinbase is one the world’s largest exchanges for buying and selling cryptocurrency and has 20 million customers. The exchange announced that it has acquired Distributed Systems, a San-Francisco based digital identity startup, on Wednesday. Under the terms of the agreement, Distributed System’s five-person team will join Coinbase’s identity team.
Distributed Systems is a startup that raised 1.7 million dollars in seed round. CEO Nikhil Srinivasan said: “No one really understood what we’re building”. They were talking to Coinbase Ventures about an investment, but after the exchange saw Distributed Systems’ progress and vision, “they quickly tried to move to find a way to acquire us” he added.
Coinbase improves the identity verification system and makes investments. Nikhil Srinivasan and co-founder Alex Kern will lead the system called ‘Login with Coinbase’. The rest of the Distributed Systems’ team will be dedication to developing ‘Toshi decentralized mobile browser’.
With this acquisition, Coinbase will become a major player in the Facebook dominated market. Users will have the possibility to verify their identities without sharing their information. In the blog post, Coinbase Identity project manager B. Byrne wrote: “If you stretch your imagination a little further, you can imagine this applying to your photos, social media posts and maybe one day your passport too,” he added.
We would like to add that there are similar works in Turkey. The winner of Webrazzi Arena 2017, Kimlic continues its hard work to become the first KYC Project within its field that comply with the laws.