The problem in web3.0 ID

**The Challenge with Identity in Web 3.0**

An identity, a data compilation representing an individual, facilitates access to specific services and simplifies account management. However, data collected actively by user inputs or passively via behavioral monitoring is often exploited by data brokers, frequently without user consent.

Pseudo-anonymous blockchain networks have emerged as a solution, preserving privacy by prohibiting identity monitoring. However, this comes at the cost of eliminating the benefits of cross-platform identities, leading to less user-friendly identity management on DApps and difficulties in validating and accrediting identities. This presents several issues:

1. Attracting genuine users: New blockchain projects often struggle to draw real users. Common strategies like airdrops fall short, as there's no mechanism to prevent a single user from creating multiple accounts to claim rewards.

2. Credit for loans: DeFi is currently missing a credit system. Without user credit or financial history, institutions must charge collateralized deposits for microloans or flash loans.

3. Balanced governance: In Proof of Stake (PoS) networks, voting power is determined by token distribution, which may lead to disproportionate influence by major stakeholders unless sophisticated algorithms are employed.

A user's on-chain identity, reflected in activities beyond mere token transfers, can provide valuable insights into their behavior and preferences. With cross-chain account integration, more information about the identity behind these accounts can be gleaned, addressing the issues mentioned above.

Decentralized Identity (DID) differs from conventional identity in its generation methods, which lack centralized control and scrutiny. As Web 3.0 expands, more DID data will be generated on chain. However, due to its fragmented nature and the lack of infrastructure for merging and integrating data across different networks, managing this data becomes a challenge. By indexing data across blockchains, we can bridge these isolated data islands, empowering data owners with flexible management and utility of their data.