Ethereum’s Buterin Proposes Pluralistic IDs for Web3 Privacy

• Pluralistic IDs let users create multiple identities using a zero-knowledge proof technology.
• Vitalik Buterin’s model reduces data exposure while maintaining KYC and AML compliance.
• Projects like World ID already apply ZK-based identity in real-world systems.

Ethereum co-founder Vitalik Buterin has introduced a new digital identity system named“pluralistic identity,”. Unlike the conventional one-identity-per-person model common in many blockchain platforms, this approach enables users to develop multiple identities tailored to specific contexts. This enhances privacy and reduces the chance of surveillance or coercion.

In a blog, Buterin noted that, unlike traditional digital ID systems, which often force users to share their full identity to access services, Pluralistic IDs support selective disclosure. This lets users verify particular attributes—like age or nationality—without revealing personal details. In practice, users could hold separate identities for social platforms, financial services, and healthcare apps, all while proving legitimacy through zero-knowledge (ZK) proofs.

Buterin’s suggestion is also in line with industry trends. Projects such as World ID already exploit ZK-based systems to facilitate privacy-preserving verification. Nonetheless, several of them are based on one-per-person logic which can unintentionally weaken pseudonymity. Pluralistic IDs address this by seeking to balance identity integrity and user autonomy.

These IDs are particularly relevant as governments and tech firms move toward more stringent ID verification mechanisms, raising concerns about privacy, data leaks, and user safety.

Unlike centralized systems, Pluralistic IDs operate in a decentralized infrastructure. They enable users to control multiple personas without relying on a central issuing authority. This transition may decrease the reliance on big tech and state databases and potentially lead to an increase in trust in the digital services that decentralized systems offer since users will have control over assessing and using their identities.

Zero-Knowledge Proofs Power Contextual Privacy

Pluralistic IDs leverage zero-knowledge proofs to allow users to verify their credentials without disclosing any personal or sensitive information. For instance, a user can confirm they are over 18 or a citizen of a specific country instead of sharing a full passport. The system hashes a private key and links it to application-specific identifiers, maintaining unlinkability between services.

Pluralistic identity models aim to solve a key limitation in Ethereum’s current identity systems, privacy. While Ethereum offers pseudonymity, it becomes compromised when platforms enforce a single-identity policy. This can lead to all user activity being tied to one traceable account, making it difficult to separate personal, professional, or anonymous roles and increasing the risk of profiling.

They offer a more flexible and privacy-preserving alternative. By enabling users to create and manage multiple identities, the system allows for role separation while maintaining accountability. However, it also incorporates safeguards against abuse. To prevent bad actors from mass-creating fake accounts, particularly in systems like universal basic income (UBI) or governance voting, Pluralistic IDs use a cost model based on quadratic scaling. Under this model, acquiring N identities costs N², which significantly raises the barrier to creating many identities and deters the concentration of influence

Related: Vitalik Buterin Unveils New Ethereum L1 Scaling Plan

Governance and Compliance Benefit from Identity Flexibility

Pluralistic identity systems will have positive implications on decentralized finance (DeFi) platforms, social networks, and DAOs. The model assists in meeting the Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations without compromising the privacy of the user. Users demonstrate eligibility by making minimal disclosures instead of revealing entire profiles.

Moreover, pluralistic IDs improve governance models. Wealth-based voting systems often have an undue influence on large stakeholders. With pluralistic identity, governance systems can detect the degree of decentralization behind voting power, enhancing fairness and reducing manipulation.

They enable secure, low-cost access in scenarios such as token airdrops or universal services, without excluding those without capital. By integrating explicit social-graph identity with implicit multi-ID ecosystems, a powerful solution can be created that scales privacy, minimizes error rates, and supports a variety of user bases.

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