Moca Network Aims to Solve Fragmented Digital Identity Challenges in Web3

The management of digital identities in Web3 is currently marked by fragmentation, which creates several operational hurdles for both users and businesses. This disintegration results in inefficiencies that hamper the full realization of their potential. Developers are actively working towards establishing a comprehensive infrastructure focused on the user.

At the Consensus conference in Hong Kong, Kenneth Shek, the project lead of Moca Network, discussed the challenges and opportunities of creating a unified digital identity ecosystem, which would enable users to effectively manage their own data.

Understanding the Fragmentation Issue

In both Web2 and Web3 paradigms, digital identities are distributed across multiple platforms, often leading to lost opportunities and inefficiencies. Businesses grapple with accurately identifying and targeting valuable users, while individuals often find their worth underrepresented across different platforms.

“In a typical Web2 scenario, users may have multiple accounts for various platforms, such as a Marriott account and a British Airways account. Even with unified login credentials like email, users are treated differently across platforms, necessitating complex password management systems,” Shek elaborated.

Moreover, advertisements in Web2 environments heavily rely on platforms like Meta for user categorization, which is limited by the data available within isolated systems. This lack of data cohesion leads to ineffective targeted advertising campaigns. Users interacting with numerous online platforms end up with fragmented profiles, contextually confining them to specific advertising scopes.

Web3’s Identity Verification Challenges

Many Web3 projects utilize airdrops as a method for rewarding active participants. However, the allocation of these airdrops becomes problematic due to the dispersed nature of user activities across various platforms.

“Currently, there is no singular layer that links all activities across platforms,” Shek admitted.

Relying solely on data from individual blockchains can complicate the identification of genuine participants. Furthermore, the decentralized and anonymous nature of Web3 allows users to join and exit platforms with ease, adding another layer of complexity.

The challenges faced by initiatives, such as the Starknet airdrop, which aimed at reaching approximately 1.3 million wallets, underlines these difficulties. The project struggled to distinguish real contributors due to data limitations, adversely impacting network activity.

Understanding Platform-Centric Control Challenges

According to Tiger Research, several factors contribute to the fragmentation of digital identities. This includes a focus on centralized platform control, technical incompatibilities, and stringent data regulations enforced by major technology firms like Alibaba and Tencent.

This issue not only poses practical challenges but also disrupts equitable value distribution. Users are forced to create distinct accounts on every platform, continually reconstructing their profile data.

Large tech companies, such as Google and Meta, exploit this data fragmentation to generate substantial revenue through advertising models that hinge on user information. Despite being the source of this data, users often find themselves excluded from the economic benefits.

“Data ownership should revert to users. Legal cases have established that individuals have rights over their own data and the ability to monetize it,” Shek noted.

Moca Network, an initiative under Animoca Brands, strives to establish a digital identity ecosystem that harmonizes user data and empowers individuals to take control of their information.

The Argument for an Open Internet

Moca Network has been dedicated to the vision of an open internet infrastructure, long before being recognized as an NFT-centric initiative.

“For the past three years, we’ve been discussing strategies to enhance our network’s influence and value through consolidation. Imagine if all partners and enterprises associated with Animoca adopted this approach, leading to seamless interactions motivated by cryptocurrency incentives,” Shek articulated.

With its Moca 3.0 initiative, the network proposes a holistic framework where a unified account manages a user’s digital assets, identity information, and online reputation.

The focus here is to design systems that center around the user instead of compelling users to adjust to predefined limitations. The AIR Kit aims to be the universal account system that partners would integrate into their applications.

“AIR stands for Account, Identity, and Reputation. It serves as the SDK our partners will utilize, fostering collaborative network growth,” Shek stated.

The AIR Kit will merge accounts and identities, streamlining Web3 wallet creation while abstracting the complexities of on-chain actions. It will further enhance the user experience with features like gas fee coverage and cross-chain transaction capabilities.

Moreover, Moca Network ensures that users retain control over their data within this framework.

Empowering Users with Data Ownership

The credentialing system of Moca Network works alongside its unified account framework to enhance user data management and value creation. Users will gain robust data control through secure, decentralized storage solutions that grant them authority over credential management, effectively addressing the constraints posed by centralized platforms.

“Our goal is to foster ownership and interoperability of digital identities and data. Users should have the ability to tokenize their information and take it anywhere, making the entire internet programmable. As it stands, users are treated as new entities at every new application or game. However, if their activity history is shared across platforms, it could lead to a more personalized and programmable user experience,” Shek explained.

To ensure robust data protection, the system employs tamper-resistant technologies and zero-knowledge proofs. Cross-chain messaging protocols facilitate the secure transfer of credentials between systems, allowing for interactions with smart contracts across different blockchains.

Future advancements will aim to incorporate technologies to validate and leverage Web2 data on-chain, working towards creating a more comprehensive digital identity system that effectively bridges the gap between these two environments.

“The upcoming year, 2025, promises to be incredibly exciting as we build an infrastructure that has yet to emerge in this space. Our focus is directed toward elements that truly matter and will significantly drive adoption,” Shek concluded.