Coinbase wants to weave identity across all of their products. To that end, the digital token exchange has acquired San Francisco-based startup Distributed Systems Inc., which develops solutions for decentralized identity.
In a tweet, Brian Armstrong, the CEO and co-founder of Coinbase, showed excitement as he welcomed the team over to his company. On the other hand, Nikhil Srinivasan, CEO of Distributed Systems, also took to Twitter on the same day to explain via a thread of posts what his startup was working on.
According to TechCrunch, Distributed Systems was founded incorporated in 2015 whose principal aim was to develop an “identity standard for dApps.”
Users in control over their data and privacy
Distributed Systems specializes in developing open source systems that avails the opportunity of “user-controlled identities across the web.” According the start-up’s CEO, the identities can represent any entity which includes people, services, companies and even governments.
The start-up builds upon the property of blockchain technology which is; rather than storing a user’s data while at the same time holding the user’s keys, the platform uses a financial incentive to store the user data while at the same time allowing the user control and access to the data. Therefore, some technology users deem blockchain technology as a way to take back control of their information. In fact, the technology could be used to design a kind of “stamp that people can use to verify themselves”, which is far much comfortable than giving companies personal details which the users have no idea the companies use for.
Meanwhile, according to a statement by the exchange, the other remainder of the Distributed Systems employees will be deployed to work on a digital wallet developed by Coinbase a while back, but which has been operating as an application programming interface (API). The API was initially developed to enable miners obtain Bitcoin blockchain information.
However, the statement from Coinbase outlines that the newly developed Coinbase Wallet will be able to “store and manage Ethereum-based crypto-tokens and will soon add support for Bitcoin, Litecoin and Bitcoin Cash.”