Ethereum Co-Founder Buterin Proposes Pluralistic Identity to Enhance Privacy

Ethereum co-founder Vitalik Buterin has introduced a new concept called "pluralistic identity" to address the privacy concerns associated with digital identity systems. In a recent blog post, Buterin highlighted the potential risks of relying on a single digital identity, particularly when using zero-knowledge (ZK) proof-wrapped IDs. These systems are designed to protect user privacy by allowing individuals to prove their identity without revealing personal details. However, Buterin warned that enforcing a one-to-one identity per person could undermine pseudonymity and expose users to coercion.

Buterin noted that many digital ID projects, including World ID and various government initiatives, are increasingly adopting ZK technology. However, he cautioned that these systems could force users into a single, trackable identity, eliminating the ability to maintain separate pseudonymous profiles. This lack of flexibility could heighten the risks of surveillance from governments or employers, as all user activity would be linked to a single public identity.

To mitigate these risks, Buterin proposed the concept of pluralistic identity systems. In these systems, no single authority controls identity issuance, making them more resilient and inclusive. Pluralistic identity systems could be explicit, using social-graph-based verification methods like Circles, or implicit, relying on multiple ID providers such as government documents and social platforms. This approach ensures that no single ID gains near-total market share, thereby preserving user privacy and inclusivity.

Buterin also rejected the idea of using "proof of wealth" as an anti-Sybil measure, arguing that it excludes individuals who cannot afford to pay and concentrates power among the wealthy. Instead, he suggested a middle ground where users can obtain multiple identities at a cost proportional to the square of the number of identities, ensuring a more balanced and fair system.

The Ethereum co-founder emphasized that the best outcome would be a merger of one-per-person identity schemes with social-graph systems. This hybrid approach would bootstrap diverse, global identity networks while maintaining privacy, inclusivity, and resistance to abuse. Buterin warned that if any single identity system gains too much market share, it could shift the world towards a one-per-person model, which he argued has worse properties.

In conclusion, Buterin's proposal for pluralistic identity systems aims to address the privacy and inclusivity challenges posed by current digital identity systems. By promoting a more flexible and decentralized approach to identity management, Buterin hopes to create a digital environment that protects user privacy while enabling fair participation in digital life. This approach not only enhances user privacy but also ensures that digital identity systems are more inclusive and resistant to abuse, ultimately fostering a more equitable digital landscape.