Author of the Opinion: Nanak Nihal Singh Khalsa, Co-founder of Holonym Foundation

In the pursuit of human progress and the improvement of human life, humanity often creates more problems than it can solve.

This is a cycle of unintended consequences that can be traced back to our origins. Cavemen created weapons to aid in hunting and gathering food, only for those weapons to become the catalysts for conflict and war. The same cycle repeats in vastly different circumstances, but if left to develop and worsen, it can lead to similar outcomes.

We are now firmly entrenched in the digital age. Most of our critical systems and infrastructures are seeking ways to go online. One of these systems is identity, which is the intersection of human rights and personal freedom. Identity is such a crucial aspect of human existence that losing it can mean the end of a person's life, both literally and metaphorically.

However, modern infrastructure is inadvertently condemning some members of humanity to this fate, whether intentionally or unintentionally.

The latest digital identity infrastructures, such as cryptographic systems and zero-knowledge (ZK) proofs, can only be used by world citizens who possess specific tools: smartphones and the internet. This represents only a small fraction of the global population. Approximately 2.7 billion people do not have smartphones, and about 2.6 billion remain offline. If our identity systems cannot meet the needs of this portion of humanity, we cannot truly call them identity systems.

It is becoming increasingly clear that the path humanity is currently taking regarding digital identity leads only to one place: a dystopian future. To prevent this reality, there is an urgent need to prioritize accessible and inclusive identity frameworks while limiting surveillance, dehumanization, and human rights violations.

These systems should ideally be designed for resilience in low-infrastructure environments where connectivity, national recognition, or continuous power supply cannot be guaranteed. Fortunately, the technology to design these systems already exists.

Offline authentication through QR codes, NFC cards, or local mesh networks allows for offline identity verification in places without internet or continuous power supply, making it a more accessible form of digital identity recognition.

Peer-signed credentials can effectively replace identity credentials from companies and government agencies, providing a truly decentralized means of identity verification.

These tools pave the way for building a human-centered digital identity system that is less susceptible to surveillance or dehumanization while providing accessibility and reliability.

The biggest problem with the latest digital identity systems is that they inadvertently reinforce some of the issues of traditional systems, such as dehumanization, exploitation, and inaccessibility, albeit in different ways.

Consider traditional systems like national ID cards or SIM cards. The introduction of these systems was intended to help governments classify and organize their citizens. However, over time, they have also excluded those without proper documentation, expanded surveillance capabilities, and created centralized control points. In many places, these systems leave individuals with little recourse against overreach, often undermining privacy rights by enabling governments to monitor their citizens without adequate safeguards.

A similar pattern is currently unfolding in modern digital identity systems. While biometric systems personalize human identity and eliminate issues like impersonation, they raise concerns about the security of biometric data and the commodification of that data. Some biometric identity providers have faced scrutiny for exploiting developing regions by offering monetary compensation in exchange for this data.

Blockchain-based systems address some of these accessibility challenges, as they often require fewer Know Your Customer (KYC) requirements and are more open to users without traditional identification. However, they introduce different trade-offs, as most public blockchain systems make transaction histories visible to anyone, creating potential privacy risks even as they lower the barriers to entry. The technical complexity still makes inexperienced users vulnerable to mistakes or exploitation.

Ultimately, the core issue is that many systems have not balanced accessibility and privacy in a way that serves everyone. Digital identity solutions should be designed to protect user privacy, prevent censorship, and be open to all, regardless of whether someone holds the "right" documents or tools.

Blockchain and cryptocurrency-related technologies will not change the world by attracting more engineers and founders supported by venture capital. They will change the world when they can serve stateless individuals, undocumented people, and the unconnected without compromising their safety, dignity, or control.

The first step toward realizing this reality is to replace centralized systems with provable, peer-anchored systems. Although cryptocurrency advocates for decentralization, there is still a long way to go to achieve this goal.

Humanitarian environments are the true testing grounds for decentralized infrastructure. It is easy to talk about autonomy and censorship resistance in a co-working space in San Francisco. In less-than-ideal places, such as refugee camps, war zones, or off-grid villages, making these ideals work is much more difficult and urgent.

In these environments, the things that identity systems rely on, such as trusted issuers, cloud services, smartphones, and the internet, are unavailable. If cryptocurrency wants to prove its value to the world, it must stop building only for itself. It must invest in infrastructure that works on the margins, where systems are collapsing, rather than where they are running smoothly.

Now is the time for us to take a stand on what kind of digital identity infrastructure we want to build, to avoid repeating the mistakes of the past or, worse, ushering in a dystopian reality where identity is weaponized against the vulnerable in our society.

Author of the Opinion: Nanak Nihal Singh Khalsa, Co-founder of Holonym Foundation

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This article is for general informational purposes only and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Original: Opinion: Identity Systems Must Serve the Disconnected

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