Digital identity is fundamentally important to the use of BSV and blockchains in general, says Dr Eva Porras, an honorary research collaborator at Universidad Rey Juan Carlos and the Managing Director of Smart Ledger Services.

Porras noted that having a secure and immutable digital identity tied to the blockchain is necessary to develop and grow an honest economy. However, this privacy and security should not be confused with anonymity.

‘There is really an awareness of the capacity of governments and organisations to overreach by using the blockchain. Obviously, this conflicts with human rights but also with legal laws that exist right now – and this will need to be solved.’

Porras added that this comes down to a fundamental conflict of interest between governmental and regulatory power and individuals who want to keep their identity’s private.

‘Governments always want to have power over people, and that power is going to come at the expense of the rights of the people. In this case, we also have to consider, obviously, that we need to follow the law.’

Protecting individual rights

Porras said it is important that people are conscious of their rights around digital identity not only so they can defend themselves but also to take an active role in advancing protections.

‘I think this is one of the benefits of blockchain. I think it’s going to cause such a revolution that once there is more common knowledge of how it works, people will start taking a more active role in their own lives. This will be part of defending their rights as private individuals.’

More guidance needed

In addition to advancing individual digital rights, Porras said government bodies and regulators need to take a clear stance on blockchain technology and crypto-assets in general.

‘There are many laws that regulate different aspects of the digital economy and of course, digital currencies that are out there. However, there are several problems with these laws. First of all, they are so scattered under different Acts and different organisations. That is difficult.’

‘I think it’s extremely important that the blockchain sector gets regulated properly, particularly so that it can be communicated properly to the different organisations within it.’

Porras highlighted the recent volatility seen in the crypto-asset market and speculative buying, which points to more rules needing to be in place. ‘It’s because people cannot distinguish between a marketing story and the real economy behind the asset.

‘I think it’s very important that it gets regulated and regulated in a comprehensive manner. And also that it is communicated properly is thought of properly because everything that is understood as a cryptocurrency is really not a cryptocurrency.’

Blockchain education is vital

Porras noted that educating people about BSV and blockchain is vital – both from the view of individual rights and the view of regulators. ‘The role of education is absolutely key. Right now, if the law was to be enforced, many people would be in prison because they are announcing pure lies all day long.’

She noted that some of this is bad faith actors taking advantage of investors, but that a large part of this is due to a lack of knowledge.

‘I think communication and spreading the word and calling things out (is necessary) to educate people in the business world – the managers and directors – who have to make decisions that are important for their own organisation but also for local economies.’