China’s Blockchain Service Network (BSN) has introduced the RealDID system, which utilizes IOTA’s Tangle technology to power its decentralized identity system. The BSN, in partnership with major tech companies like China Mobile and China UnionPay, has developed RealDID as the world’s first national-level decentralized identity system. This system allows users to register and log in to websites anonymously using Decentralized Identifiers (DIDs) and private keys, ensuring the privacy of personal information. The RealDID initiative is a response to China’s Ministry of Public Security’s push for enhanced credibility and public supervision. It aims to provide a more secure and private alternative for users, aligning with global trends in digital identity management.
China’s blockchain innovations have raised concerns in the global scene, with a U.S. bill being proposed to ban federal government officials from using China-made blockchains due to potential national security risks and data protection concerns. The adoption of blockchain technology for citizen identities has geopolitical implications, with data access and privacy becoming central to the discourse.
However, the geopolitical situation surrounding China’s blockchain technology is expanding, as seen in the removal of China’s Institute of Forensic Science from a trade sanctions list by the U.S., reflecting the dynamics between the two nations. China’s efforts to establish a digital yuan and a Central Bank Digital Currency (CBDC) are gaining momentum, challenging the dominance of the US dollar in global transactions.
IOTA’s Tangle technology sets it apart from traditional blockchains. Its Directed Acyclic Graph (DAG) structure allows for faster transaction confirmations and scalability, making it ideal for China’s RealDID system. IOTA recently introduced Identity 1.0, a decentralized identifier mechanism that gives users full ownership and control of their digital identities. The upgrade incorporates Alias Outputs for interaction with other Layer 1 network hosting tokens. IOTA’s Stardust protocol upgrade expands its capabilities beyond tokenization and advances the digital space.
IOTA’s expansion into the Middle East, Africa, and Asia, with the establishment of a foundation in Abu Dhabi, demonstrates its commitment to fostering a compliant and multifaceted blockchain ecosystem globally.