Top trader and blockchain analyst have indicated digital identity as a rising sector that could dominate the blockchain industry in the coming years. The analyst emphasized the opportunities in this and called it acceptance potential as a crucial factor for its growth in the schedule of things.
According to the analyst, digital identity has the power to bring a huge influx of users to the blockchain ecosystem. He thinks that only gaming has the potential to bring more users to the chain than digital ID and the proof of humanity.
The analyst noted that the security -resistant layer of the blockchain is of the utmost importance, so that it justifies why some top blockchain locations concentrate in that direction.
Digital identity sector undervalued
In the meantime, the analyst considered the current value of the digital identity sector and noted that it is undervalued. Apart from his obvious business and market potential, he expects that a considerable amount of onchain value will be unlocked within the Digital ID room.
As an example, he mentioned the possibility of bringing the 385 million people in the US to the blockchain through digital IDs and the immense value that could create for the entire sector.
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Although it acknowledges that governments can play a role in obliging the acceptance of Digital ID, the analyst emphasized the inherent benefits of these solutions, including the use of zero knowledge certificate to tackle privacy and safety problems.
The widespread implementation of blockchain-based digital ID in different industries would generate a significant activity within the ecosystem, which further supports the statement of the analyst that it could indeed become the next important trend in blockchain and cryptocurrency.
What is the outlook of the analyst on the Defi market?
In addition to Digital ID, the analyst also believes that the Decentralized Finance (Defi) market is currently too expensive, especially when considering the large Polish of capital that will probably enter the ecosystem.
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The analyst believes that the technical environment is ready and prepared for such capital pools to insert and stimulate the value of the Defi market. Such a scenario will pump massive liquidity in Defi, possibly the type of energy that the sector experienced a few years ago.
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