02 May

The US-based corporate intelligence and software firm MicroStrategy has unveiled Orange, a brand-new decentralized identity protocol. This novel technique was introduced on May 1 at the annual MicroStrategy World conference in Las Vegas.

Orange distinguishes itself by utilizing an innovative approach to store data linked to decentralized IDs (DID) on the Bitcoin (BTC) blockchain: inscriptions as Ordinals. The protocol makes use of Bitcoin's Segregated Witness (SegWit) feature. Additionally, it makes it possible to generate and amend documents with little limitations on their size or content.

What distinguishes MicroStrategy's Orange from Other DID Solutions?

Michael Saylor, co-founder and executive chairman of MicroStrategy, described the Orange protocol concept in a segment titled "Bitcoin Security."

''Our goal is to offer a Bitcoin-backed decentralized digital identity that is native to the internet. Hence, we wish to combine the open standards of DID and Bitcoin. But why would we utilize Bitcoin? It is far superior to most people's taskwork managers and this federated system, and it uses the most cutting-edge cryptography. It is also fault tolerant and resistant to censorship. It's diffused, unrestricted, and egalitarian,'' Saylor remarked.

The Orange protocol idea was explained by Michael Saylor, co-founder and executive chairman of MicroStrategy, in a segment titled "Bitcoin Security."

Our objective is to provide a native internet-based decentralized digital identity backed by Bitcoin. Therefore, our goal is to merge the open standards of Bitcoin and DID. However, why would we use Bitcoin? It uses state-of-the-art cryptography and is considerably superior to most people's taskwork managers and this federated system. It can also tolerate errors and withstand censorship. Saylor noted that it's diffused, unfettered, and egalitarian.

One such way that uses referring a URL to retrieve DID document data is the Bitcoin Reference DID method (did:btcr). In the event that the URL content changes, this dependency could jeopardize the immutability of the blockchain. Conversely, Orange keeps extra information on the DID document right on the chain.

Further adding to the external dependencies is the requirement for ION (did:ion) to index all IPFS data that is referenced by Bitcoin transactions. Orange stores arbitrary quantities of data in the witness of Bitcoin transactions through inscriptions thanks to its usage of the taproot script path reveal transaction feature. Orange is therefore able to stay away from this reliance.

Orange also strengthens security protocols by differentiating between "subject keys," which authenticate the DID subject, and "wallet keys," which are used to sign Bitcoin transactions on-chain.

Because of this division, a DID can be managed by a third party on behalf of the subject or require several signatures. It provides an additional degree of security and control as a result.

This action showed MicroStrategy's ongoing commitment to and support of the Bitcoin ecosystem. Saylor had announced earlier in February that the company was changing its focus to the development of Bitcoin.

''We see ourselves as a corporation that develops Bitcoin. That implies that we would exert every effort to expand the Bitcoin network," 
he declared on February 6 at the company's fourth-quarter earnings webinar.

The most recent Bitcoin buy by MicroStrategy strengthened the company's long-term outlook for Bitcoin. According to BeInCrypto, MicroStrategy spent $7.8 million, or another 122 BTC, in April.

Through the deal, MicroStrategy's holdings—which are currently worth at approximately $12.35 billion—rise to 214,400 BTC. MicroStrategy presents itself as a significant participant with more than 1% of the limited 21 million Bitcoin available. 

May 2024, Cryptoniteuae

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