MicroStrategy recently introduced a new Bitcoin-based strategy at their annual conference, aimed at combatting online spam. The strategy, known as “MicroStrategy Orange,” is an open-source decentralized identity solution built on Bitcoin. While this new technology has the potential to revolutionize the way we verify authenticity in online communication, some Bitcoin enthusiasts remain skeptical about its effectiveness.
The core idea behind MicroStrategy Orange is to create an “enterprise-grade platform for implementing Decentralized Digital Identifiers (DIDs)” across organizations. One of the main features of this platform is “Orange for Outlook,” which aims to provide an orange check for emails to verify their authenticity and prevent spam. This concept is similar to Twitter’s verification process, but for email communication. MicroStrategy’s executive chairman, Michael Saylor, mentioned that the vision is to offer a decentralized digital identity backed by Bitcoin, which is fault-tolerant, censorship-resistant, and uses advanced cryptography.
Unlike previous attempts at decentralized identity solutions, MicroStrategy’s platform allows for the seamless deployment of DIDs to thousands of team members within hours. These digital identities are anchored in the Bitcoin blockchain using public-private key cryptography. Users can sign the headers of their emails using private keys generated through MicroStrategy Orange, with public keys paired to a DID permanently inscribed on the blockchain. This method ensures the legitimacy of emails by verifying them on-chain through users’ corresponding public keys. The platform is highly efficient in terms of on-chain storage, enabling the storage of tens of thousands of DIDs within a single Bitcoin transaction without the need for a sidechain.
Criticism and Feedback
Despite the innovative approach taken by MicroStrategy, there has been some skepticism from the Bitcoin community. Critics argue that the implementation of DIDs on Bitcoin unnecessarily bloats the blockchain and could drive network fees to extremely high levels. Some experts, like decentralized identity specialist Daniel Buchner, believe that while the concept is promising, there are more efficient ways to achieve the same goal without overloading the Bitcoin network. Additionally, concerns have been raised about the potential misuse of Bitcoin as a corporate data store, as highlighted by co-founder of Mutiny Wallet, Tony Giorgio.
On the other hand, proponents of the strategy, known as Ordinals fans, have praised MicroStrategy’s initiative for providing legitimacy to their protocol. This move signifies a shift from the traditional use of Ordinals for speculative NFTs and meme tokens to a more practical application in the realm of digital identity verification. Fred Krueger, a supporter of Ordinals, emphasized the versatility of Bitcoin as a data layer and expressed positivity towards the announcement.
MicroStrategy’s Bitcoin-based strategy for combatting online spam has the potential to revolutionize the way we verify authenticity in digital communication. Despite facing criticism from some members of the Bitcoin community, the platform offers a unique approach to decentralized digital identity solutions. With further development and refinement, MicroStrategy Orange could become a game-changer in the fight against online spam.