Web3 is a decentralised model that seeks to manifest a digital experience that is more resilient, more inclusive, and prioritises peer-to-peer decentralised networks and applications. Decentralisation is a fundamental component of Web3 since it increases the security and resilience of the new internet.
However, centralisation in Web3 has advantages regarding security and compliance while keeping Web3 in general decentralised. By implementing centralised identity management systems, Web3 can achieve both compliance and security while still maintaining decentralisation.
Advantages of Centralisation in Web3
1. Compliance
Centralised systems offer full compliance and high security but lack privacy, while permissionless DeFi solutions provide greater privacy and anonymity but lack compliance.
Centralisation in Web3 can help address this issue by providing a compliant environment while still maintaining decentralisation. This can be achieved by implementing centralised identity management systems that provide tighter controls to prevent unauthorised access.
2. Security
Centralised identity management strengthens security by providing tighter controls that help prevent unauthorised access.
Decentralised identity management, on the other hand, provides users with more control over their personal information and privacy. By combining centralised and decentralised identity management, Web3 can achieve both compliance and security.
3. Granular Administrative Control
Centralised identity management offers granular administrative control that decentralised identity management cannot match. This level of control is essential for organisations that need to verify user identities and individuals that want to access organisations’ resources and services.
For instance, EY suggests that users will want the ability to conduct commerce via Web3 in both familiar and new ways, leveraging its decentralised nature to place more power in the hands of consumers and creators. However, this direction is in stark contrast to our current approach and has profound implications for how they’ll protect the security and identity of users. By implementing centralised identity management systems, organisations can achieve granular administrative control over user access while still maintaining decentralisation.
Concluding Thoughts
Web3 is a decentralised model that seeks to manifest a digital experience that is more resilient, more inclusive, and prioritises peer-to-peer decentralised networks and applications. However, centralisation in Web3 has advantages regarding security and compliance while keeping Web3 in general decentralised.
By implementing centralised identity management systems, Web3 can achieve both compliance and security while still maintaining decentralisation.
MultiversX
One of the most promising blockchain projects in the Web3 space is MultiversX. MultiversX is a decentralised platform that aims to create a new metaverse where users can interact with each other in a virtual world.
MultiversX is designed to be fully decentralised, meaning that there is no central authority controlling the platform. Instead, users have complete control over their assets and can interact with each other directly without any intermediaries. This makes MultiversX more resilient to attacks and more secure than centralised platforms.
MultiversX also prioritises peer-to-peer interactions between users, which makes it more inclusive than centralised platforms. Users can interact with each other directly without any intermediaries, which means that they have more control over their data and privacy.
By prioritising decentralisation, security, and inclusivity, MultiversX represents the future of Web3.