Lawrence Damilola
Vitalik Buterin, the co-founder of Ethereum, has described airdrops as an ideal use case for testing blockchain-based identity and credential frameworks.
According to Buterin on X (formally Twitter), these frameworks aim to address several key objectives, making airdrops a suitable environment to test their effectiveness in a live setting.
Buterin outlined four primary goals for airdrops: distributing tokens to genuine community members rather than random participants likely to sell immediately, rewarding individuals who contribute meaningfully to a project, maintaining a reasonably fair distribution while allowing some level of disparity, and preventing exploitation through extractive or adversarial tactics. He believes these objectives align closely with the goals of blockchain-based identity systems, which are designed to verify participants’ credentials while protecting their privacy.
He suggests that building such frameworks and using them for token issuance could be a strategic way to refine these systems. “It makes perfect sense to use token issuance as an initial use case to beta-test and refine their work in an adversarial environment,” Buterin noted. He also mentioned that giving tokens away for free is not the only method that makes sense, adding, “You can also do discounted sales.”
Buterin highlighted that offering tokens at a reduced price, based on the degree of verified membership or contribution, could help achieve a more distributed token supply while still rewarding non-financial contributions. This approach ensures that participants maintain a stake in the project and provides a way to balance distribution while incentivizing meaningful engagement.
He further elaborated that any technique effective for airdrops could also be applied to discounted sales. As an alternative to traditional models, Buterin referenced ideas such as subsidizing savings rates for smaller accounts, similar to Singapore’s Central Provident Fund (CPF), describing this as an alternative to Universal Basic Income (UBI).
Buterin also addressed the challenges with current digital identity systems, which rely heavily on methods like passwords, biometrics, and social media logins. He argued that these systems often fail to protect privacy. He pointed out that many of these methods link all user actions to a single identifier, creating vulnerabilities that can be exploited.
To address these issues, Buterin advocated for what he calls “intersectional social identity,” where multiple trusted sources verify an individual’s identity instead of relying on a single factor like a fingerprint or password. He suggested that this approach would allow individuals to prove their legitimacy as community members based on multiple references, rather than through a single point of authentication.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
