Research Summary
The report discusses Universal Profiles (UPs) by Lukso, a new standard for on-chain identity in the blockchain ecosystem. UPs aim to simplify blockchain interactions, enhance user experience, and improve security measures. The report also explores the ERC725 standard, which facilitates the creation of blockchain-based identities.
Key Takeaways
Universal Profiles: A New Standard for On-chain Identity
- Introduction of Universal Profiles: Lukso has introduced Universal Profiles (UPs), a new standard for on-chain identity. UPs aim to simplify blockchain interactions, enhance user experience, and improve security measures. They are designed to respond to the growing need for a better user experience, heightened security measures, and best practices to interact with crypto.
- On-chain Identity: The concept of on-chain identity is a significant aspect of the crypto realm. Despite advancements in other areas, the way we interact with decentralized applications (dApps) through wallets is still the weakest link of the chain. UPs aim to address this issue by providing a more efficient and user-friendly way to interact with dApps.
- ERC725 Standard: The ERC725 is a new standard for interactions between blockchains and accounts, facilitating the creation of a blockchain-based identity. This standard is developed out of the growing need for more functionalities to be added beyond what externally owned accounts (EOAs) can do. The ERC725 standard has been authored by Fabian Vogelsteller from Lukso, who is also a co-creator of the ERC 20 standard and Web3.js, the largest Web3 library used by developers.
- Benefits of Universal Profiles: UPs offer a streamlined user experience to access blockchains, creating a whole new wave of possibilities based on interoperability. They are flexible, upgradable, standardized, and akin to social media profiles, enhancing security with features like password recovery. They can be accessed from multiple devices and allow granular control of the access you provide to your data.
- Impact on User Journey: UPs revolutionize the user journey, eliminating the need for seed phrases. The device used to control your UPs can also be replaced, and you can have different levels of permissions for different devices. They also support gasless transactions, with third parties covering fees, and can store comprehensive identity information, acting as a complete identity profile.
Actionable Insights
- Consider the Potential of Universal Profiles: Businesses and developers in the blockchain space should consider the potential of Universal Profiles (UPs) as a new standard for on-chain identity. The enhanced user experience and security measures offered by UPs could significantly improve the way users interact with dApps.
- Explore the ERC725 Standard: Blockchain developers should explore the ERC725 standard for interactions between blockchains and accounts. This standard could facilitate the creation of blockchain-based identities, offering more functionalities beyond what externally owned accounts (EOAs) can do.
- Assess the Impact on User Journey: Companies in the crypto space should assess the impact of UPs on the user journey. The elimination of the need for seed phrases, the ability to replace the device used to control UPs, and the support for gasless transactions could significantly improve the user experience.
