Ethereum’s Vitalik Buterin Warns Against Centralized Digital Identity Systems
Ethereum co-founder Vitalik Buterin has unveiled a proposal for a new identity model called “pluralistic identity,” aiming to preserve privacy, pseudonymity, and inclusion in the emerging world of decentralized digital ID systems.
“ZK-wrapping solves many problems but still has risks,” Buterin stated, cautioning against enforcing a single digital identity per person.
In his latest blog post, Buterin critiques the trend toward single, all-encompassing digital IDs, even those wrapped in zero-knowledge (ZK) proofs, which allow verification without revealing private data. He warns that while these technologies enhance privacy on the surface, they may still erode personal freedoms if they force all digital actions under one verifiable identity.
Single IDs Threaten Pseudonymity and Personal Safety
Buterin emphasized that pseudonymity requires multiple identities. In contrast, a universal ID could allow governments, corporations, or other actors to track users across all platforms.
“All of your activity must de-facto be under a single public identity,” he warned, highlighting the risks of surveillance and coercion.
Furthermore, he argued that using proof of wealth as an anti-Sybil mechanism favors the rich and excludes the underprivileged. Instead, he suggested a model where obtaining additional IDs becomes incrementally harder — such as paying a cost that scales with the number of identities.
What Are Pluralistic Identity Systems?
Vitalik’s solution is a pluralistic identity system — where no single provider dominates. This model supports multiple overlapping identity frameworks, including government IDs, blockchain-based proofs, social graph verifications, and private pseudonyms.
“Pluralism is more error-tolerant, more inclusive, and less coercive,” he noted.
He cites models like Circles (which rely on social trust networks) and World ID, which already serves over 10 million users globally, as examples of both explicit and implicit pluralistic systems. The key is diversity of verification sources and preventing any one system from reaching total dominance.
Merging One-Person Schemes With Graph-Based Trust
Buterin proposes combining one-per-person identity schemes with social verification layers to form a robust, global ID framework that is:
- Inclusive for stateless and under-documented people
- Resistant to manipulation and central control
- Supportive of pseudonymity for safety and expression
“Only pluralistic identity can balance privacy, inclusivity, and abuse-resistance,” Buterin concluded.
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