Key State Capital

Key State Capital Launches Web of Trust Database for Safe and Efficient Digital Identification

Photo Courtesy of James Forster

ZURICH, March 19, 2025 (GLOBE NEWSWIRE) -- Key State Capital has launched the Web of Trust map, which is a database of all government-affiliated decentralized digital ID projects in the world. The map is free, and all of the data will be available to the public.

What is The Web of Trust Map?

The Web of Trust Map is a unique effort to map out the projects, consortia, and individuals shaping the decentralized digital identity space. It highlights their connections, technology stacks, and protocols, offering a clear view of the ecosystem's exponential growth. This open-source dataset will be publicly accessible to researchers, journalists, regulators, academics, investors, and others seeking an in-depth overview of the decentralized identity ecosystem. This open dataset includes 3,919 private entities, 4,031 individuals, 1,065 public entities, 275 decentralized identity projects, 177 blockchains and 40 consortia.

Growth of the Digital ID Industry

Since 2015, 98 countries have announced plans to create national digital ID systems.

In April 2024, the United Nations announced that it was creating UN Digital ID in an attempt to make a universally interoperable global digital identity framework. One month later, the European Union passed eIDAS 2.0, a standardized framework for digital identity management. Many other countries have already launched digital ID systems. India launched Aadhaar, Australia launched the Government Digital ID System, and the UAE launched UAE PASS. Similar plans have been announced in countries such as the UK, the United States and China.

The Importance of Digital Identity

Digital identification has become one of the most controversial technological questions of our time. On one hand, the need to accurately identify people, entities, and objects is rapidly increasing. The global cost of cybersecurity vulnerabilities has doubled since the COVID pandemic.

In 2021, American companies lost $20 billion to cybersecurity breaches. In 2024, that figure has doubled to $42 billion. These figures do not count the mounting costs incurred by internet scammers who now steal more than $10 billion from companies and individuals in the United States alone. Many industries face inefficiencies and transaction costs associated with the lack of universally accepted identity standards.

Digital ID systems promise to solve the problems of fraud by cryptographically protecting information, so that data can only be accessed by authorized users. They also allow governments and businesses to identify individuals and businesses without being exposed to unnecessary information.

On the other hand, there are growing concerns about privacy and government authoritarianism. Critics point out that digital identity systems risk turning into “social credit systems.” Other critics are concerned that digital ID systems may give governments the power to financially censor political opponents, censor dissidents and discriminate against ethnic and gender minorities.

Poorly implemented digital ID systems have already caused billions of dollars in damage to individuals and governments. In 2017, India rolled out Aadhaar, which is the world’s most extensive digital ID system with over a billion active users. However, Aadhaar was built using a centralized platform which failed to properly segregate access. Within just two years, Aadhaar user data was leaked, resulting in the largest data breach in world history. Similar but smaller breaches have already been reported with the digital ID systems in countries such as Turkey and Switzerland.

Despite these challenges, governments continue to move forward with the rollout of digital ID. In 2018, the EU mandated the creation of the “EU Digital Identity Wallet” and will require all EU member states to implement local versions by 2026. Around the same time, China began small-scale local trials of its “social credit system.” Countries such as Brazil, the UAE and the United States are now all rolling out similar systems albeit at different paces.

Digital ID is the bedrock upon which the future economy will be built. A poorly made digital ID system will result in an unstable future of cybersecurity threats, impersonation and government authoritarianism. A well-built digital ID system will serve as a good foundation upon which a more stable, more secure and more free internet can be built.

About Key State Capital

Key State Capital is a venture capital syndicate that invests in responsibly built digital ID technology.  Responsibly built digital ID systems are decentralized, have no single central point of failure, respect privacy, offer Zero Knowledge Proofs, and do not empower authoritarian regimes.

Key State Capital also invests in related technologies such as Zero Trust Protocols, verifiable AI, cryptography, and secure communications. In addition to investing, Key State Capital works closely with governments, businesses, and international organizations to implement better digital ID technologies. Key State Capital is building the Web of Trust Map as a public resource to grow the industry, raise awareness of risks, and collectively overcome key challenges.

Contact information:
Thibault Serlet
thibault@keystate.capital
Zurich, Switzerland

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/db8a4937-7e20-471f-b818-835d41c398a3