On May 1, MicroStrategy announced the launch of a new decentralized identity platform, termed MicroStrategy Orange. This innovation was revealed by Michael Saylor, the Executive Chairman of MicroStrategy during their “Bitcoin For Corporations” conference.

The newly introduced platform leverages the Bitcoin network’s Ordinal-based inscriptions to manage digital identities, which promises a new layer of functionality and security in the digital space. Unlike traditional systems, MicroStrategy Orange operates directly on the Bitcoin blockchain, bypassing the need for sidechains, and is capable of handling up to 10,000 decentralized identifiers (DIDs) in a single transaction.

MicroStrategy Orange stands out by being completely open-source and offering robust features tailored for the modern digital landscape. It aims to provide “trustless, tamper-proof, and enduring decentralized identities,” as stated in an early draft document of the solution available on GitHub.

The decentralized identity (DID) system allows users a level of pseudonymity akin to how real-world identities are distinct from Bitcoin addresses and transactions. This system will enable users to create and manage their digital identities independently, without relying on external validation or traditional identity verification processes.

An innovative application of this technology is “Orange For Outlook,” a tool developed by MicroStrategy to integrate digital signatures into emails, enhancing communication security and authenticity. The process begins when a user accepts an invitation email signed by MicroStrategy’s DID, leading to the generation of a unique DID and associated cryptographic keys for the individual.

Following this setup, the user’s DID and public key are recorded on the Bitcoin blockchain, enabling them to extend invitations to others to establish their digital identities.

Looking forward, MicroStrategy plans to expand the utility of MicroStrategy Orange to other platforms, including various messaging applications, social media networks, and sectors like e-commerce, enterprise, and fintech.

Not everyone was impressed, though, by MicroStrategy Orange. For example, here is what crypto influencer Udi Wertheimer had to say about it:

Udi Wertheimer is recognized in the cryptocurrency community for his insightful and often contrarian perspectives on Bitcoin and blockchain technologies. A developer and a Bitcoin aficionado, Wertheimer is known for his sharp critiques and analyses of crypto trends and projects, gaining a robust following on social media platforms where he shares his views.

With a background in software development and a deep interest in the principles of Bitcoin, Udi stands as a credible figure among both proponents and critics of cryptocurrency. He actively engages in discussions on the scalability, security, and future trajectories of cryptocurrencies, often challenging mainstream views on new blockchain initiatives.

Ordinals, a recent innovation in the Bitcoin ecosystem, have been a particular focus of Udi’s commentary. This technology, made possible by the Taproot upgrade, allows arbitrary data to be inscribed onto individual satoshis—the smallest unit of Bitcoin. Ordinals have introduced the possibility of creating Bitcoin-native non-fungible tokens (NFTs) by associating unique data with specific satoshis, thereby expanding Bitcoin’s utility beyond mere digital cash.

This has stirred debates within the Bitcoin community about the implications of such uses on the blockchain’s transaction sizes and overall focus. Despite this, Udi has voiced strong support for the experimentation with Ordinals, defending developers and users against accusations of harming the Bitcoin network.

He argues that such innovations align with the decentralized ethos of Bitcoin and foster a unique on-chain culture, which he sees as vital against the backdrop of Bitcoin’s evolving narrative. On 2 March, Udi expressed an extremely bullish view on Ordinals, predicting a significant rise in interest and suggesting they could become prime targets for phishing attacks due to their potential value. He also noted the prospect of high returns on investment in well-established Ordinals, emphasizing the transformative impact they could have on the market.

Featured Image via Pixabay