Ontology, the open-source blockchain specializing in digital identity, has announced on August 11, 2020, the launch of a new decentralized identity system with enhanced security for cryptocurrency holders and traders in a decentralized finance (DeFi) ecosystem.
The company claims that the system will also enable both cryptocurrency holders and traders across the globe to manage and trade their crypto assets easily.
Furthermore, the system will benefit cryptocurrency holders in a way the EU’s Open Banking Initiative does for the traditional finance sector.
Ontology’s new decentralized identity system boasts several features that can enhance the user experience, such as allowing cryptocurrency holders to have a 360° view of their assets, no matter where they are stored, via its website or the ONTO app and enabling them to view their OScore on any blockchain.
OScore is Ontology’s credit scoring system, which allows cryptocurrency adopters to verify their holdings using ONT ID and view their financial history in the wallets they use.
According to Ontology founder Li Jun, the company is committed toward providing cryptocurrency holders with solutions that make data management easier and more secure. As DeFi is subject to strict regulations in the near future, it becomes necessary to have a system in place that verifies user identity, he added.
Because of many cryptocurrency adopters holding their assets in wallets, it becomes difficult to verify their holdings. As a result, users face problems when borrowing cryptocurrency. With its new decentralized identity system, Ontology has made a step forward in this direction, said Jun.
The new decentralized identity system, coupled with OScore, ensures data security and increases transparency and trust while reducing risks for lenders when exercising due diligence before lending out cryptocurrency.
Added to this, the company is considering integrating this system into Bitcoin and Ethereum owing to the growing demand for cross-chain interoperability.