MicroStrategy launches Bitcoin-based decentralized identity solution

MicroStrategy, the largest corporate holder of Bitcoin (BTC), announced that it will launch a decentralized identity solution on the Bitcoin network that uses Ordinal-based inscriptions to store and retrieve information.

The solution, called MicroStrategy Orange, was unveiled by Chairman Michael Saylor at the company’s Bitcoin For Corporations conference on May 1.

MicroStrategy Orange is open source, does not rely on sidechains, and can handle up to 10,000 decentralized identifiers in a single Bitcoin transaction, Saylor claimed.

According to an unofficial draft document of the solution shared by MicroStrategy on GitHub, “(The goal is) to provide trustless, tamper-resistant, long-term decentralized identity using only the public Bitcoin blockchain as the data source.” .

Decentralized identifiers (DIDs) allow for pseudonymity in the same way that your real-world identity is not linked to Bitcoin addresses and transactions.

MicroStrategy Orange consists of Orange Service, Orange SDK, and Orange Applications.

Orange Service allows users to issue DIDs to employees and deploy applications, while Orange SDK and Orange Applications provide custom tools to integrate specific services on mobile and desktop devices.

One such application that MicroStrategy has already built is “Orange For Outlook.” This application integrates digital signatures into emails, allowing recipients to verify the sender’s true identity.

The onboarding process involves accepting an invitation email signed by MicroStrategy’s DID, which will then generate a unique DID, a public and private key pair, for you.

The user’s DID and public key are inscribed on the Bitcoin network, and users can send invitations to employees to create their own digital identity.

The company wants to expand MicroStrategy Orange applications to other messaging platforms, social media networks and applications in the e-commerce, enterprise and fintech industries.

Related: MicroStrategy’s listing on the S&P 500 Index could provide millions of dollars in exposure to Bitcoin.

This comes after MicroStrategy reported a net loss of $53.1 million in its first quarter on April 30.

However, reporting under traditional accounting methods does not account for the 65% increase in MicroStrategy’s market value of 214,400 bitcoins (worth $15.2 billion at the time) during the quarter.

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