Vitalik Buterin Unveils Vision for a Pluralistic Identification System to Enhance Privacy

In a recent essay, Vitalik Buterin, co-founder of Ethereum, introduced a system of digital “pluralistic” identity aimed at enhancing privacy protection.

He discussed the benefits and associated risks of ID solutions based on zero-knowledge proofs (ZK), which are becoming increasingly popular. Among the most notable examples, Buterin highlighted World ID from Sam Altman’s Tools for Humanity, as well as projects from the Taiwanese authorities and initiatives in the EU.

These systems generally operate under a similar principle. A user receives a secret value, s, while a public hash, H(s), is stored in a global on-chain registry. To access an application, a unique identifier is generated that cannot be traced back to the original data.

According to Buterin, «ZK-wrapping» addresses many issues related to the disclosure of personal information, but it introduces the risk of imposing a single identifier per individual. This undermines the principle of anonymity, since in the real world, anonymity “typically necessitates having multiple accounts.”

Unified identification also increases the risk of authorities or employers obtaining data through coercion to reveal the secret value, s.

Buterin emphasized that these concerns are exacerbated when a single ID operator dominates the market.

He further criticized the proposed alternative from «purist cypherpunks» known as “proof of wealth,” which allows the creation of paid accounts that users could lose along with their deposits due to misconduct. This method is often utilized to safeguard decentralized governance or airdrops from Sybil attacks.

“There are certain classes of situations where this approach simply does not work,” Buterin clarified.

A more flexible approach, according to Ethereum’s co-founder, is a pluralistic identification system in which no single entity has complete control over the issuance of digital IDs.

One possible implementation of the concept could involve verification using social media account graphs like Circles or confirmations from multiple identification providers. In these cases, ZK solutions would simplify anonymization, allowing users to log in based on verified past activities or their primary existing account.

Buterin believes that the best outcomes would arise from combining individual identification schemes with social graph systems to create diverse global ID networks.

It is worth noting that Buterin has previously stated that privacy is a crucial factor for maintaining decentralization and freedom, ensuring order, and fostering progress.