Ethereum co-founder Vitalik Buterin has launched a new digital identity system called "pluralistic identity," believing it can enable fair participation in digital life while protecting privacy.
In a blog post released on Sunday, Buterin explored the prospects and pitfalls of zero-knowledge (ZK) proof-wrapped identities, warning that even privacy-protecting systems could pose serious risks if the rule of one identity per person is strictly enforced.
The Ethereum (ETH) architect pointed out that many new digital identity projects use zero-knowledge proofs to allow users to prove they have valid identification without revealing personal details. Examples include World ID, which has over 10 million users, Taiwan's digital identity project, and an increasing number of EU initiatives adopting ZK technology.
He wrote, "ZK wrapping addresses many important issues," but cautioned that "ZK-wrapped identities still carry risks," particularly because enforcing one identity per person could undermine pseudonymity and expose users to coercion.
One key risk identified by Buterin is that platforms may force users to use a single, traceable identity, eliminating the ability to maintain independent pseudonymous profiles. He stated, "In the real world, pseudonymity often requires having multiple accounts."
He believes that without this flexibility, users may find themselves in a world where "all activities must, in fact, occur under a single public identity," exacerbating the dangers of surveillance from governments or employers.
Buterin also rejected the idea of using "proof of wealth" as a countermeasure against witch hunts, stating that it excludes those who cannot afford to pay and concentrates power in the hands of the wealthy. He said, "The theoretical ideal is something in between, where you can obtain N identities at a cost of N²."
To achieve a flexible approach, Buterin proposed a pluralistic identity system where no single entity controls identity issuance, as the "best realistic solution."
He explained that these could be explicit, using social graph-based verification (like Circles), or implicit, relying on multiple identity providers—government documents, social platforms, and others—so that no single identity achieves near-total market share.
He noted, "Any form of pluralistic identity… is inherently more fault-tolerant," pointing out that this flexibility benefits stateless individuals or those unable to obtain traditional identification.
Ultimately, Buterin believes the best outcome is to combine the one-identity-per-person scheme with a social graph system to guide a diverse global identity network.
He warned, "If their market share is too close to 100%, they will turn the world… towards a one-identity model, which has worse characteristics," emphasizing that only pluralistic identities can balance privacy, inclusivity, and resistance to abuse.
Related: Users of crypto AI applications nearly doubled this year, with funding exceeding the total for 2024.
Original: “Vitalik Proposes ‘Pluralistic’ ID to Protect Privacy in Digital Identity Systems”
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