Decentralized Finance – Explained
DeFi, or decentralized finance, is an incredible innovation that is sweeping the financial scene by storm.
Giving up personal information to various databases in order to gain access to crypto products and services is now a thing of the past. Magic Square is changing the security game as we know it with Self-Sovereign identity (SSI) controlled ‘Magic IDs’ and a one-click Magic Connect login to all dApps, so you can access all of your crypto apps via one secure login, use one set of credentials across all apps, and maintain complete control of your identity.
Sound too good to be true? Here’s a rundown of the tech behind the Magic.
Magic Connect grants users access to the latest SSI technology, which brings both security and integrity to the table through something known as decentralized identifiers (DIDs). Basically, DIDs replace third-party entities like lawyers, for example, in the verification process. But, you might be wondering how something automated like a DID can replace a human entity. Here’s how it works.
DIDs encode the private and public keys of the institution which has provided its verifiable credentials (VCs). Each VC, therefore, contains the digital signature of the institution which issued the credential in the first place. This makes VCs extremely reputable, even without the intervention of lawyers in the verification process.
With DIDs everybody wins: verifying institutions can rest assured that the credentials they receive are in fact verified, issuing institutions do not need to be responsible for storing personal information in their databases, and most importantly, users gain autonomy over their identity.
When you use SSI and DIDs, your identity stays in your digital wallet, so you maintain complete control over who can access your credentials. All of your interactions use DIDs, so they are all conducted on-chain using digital signatures, and of course, leave a traceable digital trail.
SSI gives you access to a complete record of who has access to your credentials. You decide which pieces of information other entities can access, and with the swipe of your finger, you can grant or revoke third-party permissions to your VCs.
Magic Square is becoming increasingly attractive for crypto users for a whole host of reasons including built-in security and accessibility. To learn more ways Magic Square is securing the crypto space, and be the first to know about Magic Square project developments, follow us here on the blog and join our social community.