According to a press release made public on August 15, Coinbase, a crypto giant has taken over startup Distributed Systems Inc. based in San Francisco, which deals on decentralized identity solutions.
According to the contents of the blog post, Coinbase project manager for Identity, B. Byrne, said that Distributed Systems is going to help the exchange verify and validate identity in its plans to advance an open monetary system. The blog post further stated that: “Blockchain technology which powers crypto will provide a new way to enable us to become “verified” wherever we go online, it will make us feel safer about the way we interact with others and open doors to the experiences that we require.”
In the content of the blog post, Byrne defines a type of identity where users preserve control over their private data, without giving away a copy of their data. Using SSN (Social Security Number), Byrne says that each time one needs to provide it, the receiver now has a variety of that data, which “has precisely the same authority as the original.”
With the new procurement, Byrne says, “Coinbase will perform its duties toward a decentralized personality that will allow you demonstrate that you possess an identity, or that you possess a relationship with the SSA (Social Security Administration), without making a replica of that identity.”
Furthermore, Byrne indicated that Coinbase should be “deliberate about where and how this technology is applied”, considering privacy, anonymity and other profound data issues.
In the year 2015, Distributed Systems was integrated with a focus on enhancing an identity standard for dApps termed the Clear Protocol. In 2017, the startup supposedly raised $1.7 million led by Floodgate, a venture capital fund.
This summer, the firm was thinking of raising $4 million to $8 million, however, the team started negotiations about investing with Coinbase, which led to its procurement.
Coinbase has previously acquired businesses with the aim of expanding its services. In the month of June, the exchange procured Keystone Capital Corp, a securities dealer, to be added to Digital Wealth LLC, and Venovate Marketplace, Inc., in order to develop into a fully controlled broker-dealer with the United States. SEC (Securities and Exchange Commission). The procurement could help Coinbase spread its offerings and successively expand into non-crypto monetary products.