# Digital Identity Fragmentation: Lost Opportunities and Inefficiencies

The fragmentation of digital identities leads to lost opportunities and inefficiencies for both users and businesses. To address this, a user-centric digital identity system, built on an open infrastructure that can interoperate across various environments, is necessary.

Recently, Moca Network unveiled its MOCA 3.0 vision, aiming to establish an open digital identity infrastructure and restructure the user-centric digital identity system. By leveraging Animoca Brands’ extensive ecosystem (540+ portfolio companies), Moca Network is accelerating its initial growth and concretely demonstrating the potential for expanding a digital identity-based ecosystem through its partnership with SK Planet.

## Digital Identity Fragmentation: Potential Missed Opportunities

Today, the fragmentation of digital identities leads to potential lost opportunities for both users and businesses. Companies fail to properly identify high-value users, and users do not receive adequate recognition for their genuine value. This disconnection causes both parties to miss out on value-creation opportunities.

This issue is evident in the target advertising industry within the Web2 sector. Businesses utilize platforms such as Meta’s targeted advertising features to select users and offer promotions. However, because these ads rely on limited user information available on the platform, the scope and precision of targeting are constrained. Conversely, users are active across multiple platforms, but due to fragmented digital identities, the promotions they receive are confined to individual platforms. This disconnection ultimately prevents both parties from maximizing potential value.

Extending this problem to the Web3 industry complicates the situation further. Web3 projects seek to reward ecosystem contributors through airdrops, a challenging task due to the dispersed nature of user activities across Web2 and Web3. Identifying genuine contributors is challenging with data from a single chain. Furthermore, the anonymity and decentralization characteristics of Web3 allow easy participation and exit, posing limitations. StarkNet’s example illustrates this well; its airdrop to approximately 1.3 million wallets failed to identify real contributors, resulting in a sharp decline in network activity.

## Root Causes of Digital Identity Fragmentation

Digital identity fragmentation is a structural issue affecting industries across Web2 and Web3. The problem’s crux is that digital identity control lies with each platform rather than the user. This issue is linked to technological limitations, as each platform implements digital identities with different technical specifications and data schemas, making data sharing and integration difficult. Big tech companies like Alibaba, Tencent, and FAANG manage user data exclusively within their platforms, exacerbating this disconnection.

Beyond missed potential opportunities, these structural issues lead to inconvenience and value distortion. Users must create new accounts and rebuild activity histories on each platform despite being the same individual. More critically, the platform monopolizes the value of accumulated data. Companies like Google and Meta use user data to generate hundreds of billions of dollars in annual advertising revenue, while Reddit earns substantial quarterly revenue from selling user data. However, users, the true data owners, are excluded from these opportunities.

Addressing these issues necessitates a user-centric reorganization of the digital identity system and the creation of an open infrastructure capable of interoperating across various environments. Moca Network proposes solutions to these challenges.

## Moca Network: Digital Identity Infrastructure for an Open Internet

Moca Network recently announced its ‘MOCA 3.0′ vision to build digital identity infrastructure for an open internet. The goal is to improve the inefficiencies of current fragmented systems and establish an integrated digital environment. Moca Network’s digital identity infrastructure is based on three main features.

### AIR Kit: Core Infrastructure for Integrated Account and Identity Management

Moca Network’s AIR Kit (Account, Identity, Reputation) is a chain-agnostic, versatile account system that can be utilized across various environments. Designed with high interoperability, AIR Kit allows users to manage their digital identities comprehensively.

The AIR Kit operates around the interaction between accounts and IDs. IDs serve as functional interfaces connecting users and services, while accounts act as central hubs integrating users’ identities and activities. For instance, Moca ID in ‘Mocaverse’ and Football ID in ‘OneFootball’ maintain independent IDs while connecting to a single ‘AIR Account.’ Moca Network currently has over one billion potential users, expected to participate freely across multiple ecosystems using a single account.

Moreover, AIR Kit is an embedded account system that can provide a seamless onchain experience in Web2 services. Similar to how Telegram’s TON ecosystem or Grab integrates wallets within their apps, services can adopt AIR Kit to implement Web3 accounts within their apps. This allows users to create Web3 wallets easily, like social logins, and engage in onchain activities without managing complex blockchain addresses or private keys. Enhanced user experience features such as gas fees coverage and crosschain transactions also improve user experience.

### Credential System: Infrastructure for User Data Sovereignty

In addition to an open integrated account system, Moca Network introduces a credential system to empower users to manage their data and create value from it. This system allows users to escape the constraints of centralized platforms and secure true data sovereignty.

Moca Network supports the issuance, storage, and verification of user credentials. Credential data is securely stored in decentralized data storages, with users directly setting and managing access permissions. Moca Network likens this system to a ‘decentralized personal Google Drive.’

Additionally, Moca Network ensures data security and privacy through tamper-proof and zero-knowledge proof technologies. Crosschain messaging protocols like LayerZero and Wormhole support credential mobility across ecosystems. Users can leverage their data safely and flexibly in various environments to create greater value.

Further, Moca Network plans to introduce zkTLS technology to utilize Web2 data onchain securely and verifiably. Integrating Web2 and Web3 data will create a more comprehensive digital identity, enabling users to generate more value. This approach is expected to connect the fragmented data environment between Web2 and Web3 and contribute to establishing a user-centric comprehensive ecosystem.

### $MOCA: Token System Driving Ecosystem Virtuous Cycle

MOCA, Moca Network’s utility and governance token, plays a critical role across the ecosystem. Partners stake or pay fees in MOCA to verify credentials, sharing in the ecosystem’s economic benefits. For users, MOCA serves as a payment method and a reward mechanism based on network activity and reputation.

The flywheel effect centered on MOCA accelerates ecosystem growth. Users receive MOCA as rewards for network activities, encouraging more participation. Increased participation leads to more credential verification requests and fee payments by partners, further boosting MOCA demand. This virtuous cycle benefits both partners and users, enabling sustainable ecosystem growth.

User rewards are materialized through various programs. Moca Network operates the ‘Moca List,’ a compliance token launchpad with CoinList, and ‘Moca Drop,’ a reward program for staking participants. Additionally, Moca Network is collaborating with Magic Eden to prepare ‘Magic Moca,’ an NFT launchpad. Moca Drop, in particular, offers users prioritized participation in partner project events or airdrops based on their staking magnitude.

Beyond the reward programs provided by Moca Network, partners can design and operate their reward programs based on Moca Network infrastructure, expecting more diverse and expanded rewards in the future.

## Moca Network Applications: SK Planet Partnership

The recent partnership between Moca Network and SK Planet demonstrates the practical implementation and utilization of digital identity infrastructure. SK Planet is considering incorporating Moca Network’s AIR Kit into its integrated mileage platform ‘OK Cashbag’ and comprehensive app-tech platform ‘Syrup’ to connect with the Web3 ecosystem and utilize MOCA coins as a reward mechanism. This would allow users to leverage existing points and miles in various ways, enjoying integrated and flexible benefits across multiple platforms.

For example, users logging in with Moca Network’s universal account can purchase coffee vouchers and earn both OK Cashbag points and $MOCA simultaneously. The accumulated $MOCA can be utilized within the universal account across Syrup app and numerous OK Cashbag affiliates. In the future, users will be able to purchase products in various countries, including Japan, using the same account. Affiliates can offer better benefits by verifying user credentials and activity histories within an integrated service environment.

This collaboration provides benefits to all participants. The AIR Kit converts points, credentials, and tokens into instantly programmable assets, allowing users to gain more value. Businesses can effectively identify potential customers using verified data, and platforms enhance user experience and ecosystem vitality by providing better-integrated services.

## Ecosystem Acceleration Strategy Leveraging Animoca Brands

Attempts to build digital identity infrastructure have been ongoing in the Web3 sector. Projects like POAP (Proof of Attendance Protocol) and EAS (Ethereum Attestation Service) offer excellent functionality in user identity and activity verification.

However, these projects commonly struggle with forming an initial ecosystem, suffering continuous usage declines. The success of identity infrastructure heavily relies on network effects and ecosystem activation, beyond its technological completeness.

To overcome these limitations, Moca Network strategically leverages the existing ecosystem of Animoca Brands. With over 540 portfolio companies, Animoca’s extensive ecosystem is expected to serve as a crucial driving force for Moca Network’s initial ecosystem acceleration.

In fact, the total potential user base of Moca Network exceeds one billion, stemming from key partners such as Telegram’s TON (Telegram, 900 million users), MyAnimeList (18 million users), OneFootball (200 million users), Animoca ecosystem (700 million users), and recently joined SK Planet (28 million users). These partners plan to implement AIR Kit to issue digital identities and connect with the Moca Network ecosystem. The TON ecosystem, in particular, is expected to play a vital role in accelerating ecosystem expansion by adopting AIR Kit for digital identity issuance and Moca Network integration.

Additionally, Animoca’s global expansion broadens Moca Network’s potential. Strategic moves like the joint venture with Korea’s CUBE Entertainment, market entry into Japan through Animoca Brands Japan, and partnerships with Saudi Arabia’s NEOM City, continuously extend Animoca’s influence, expected to provide a robust foundation for Moca Network’s global integrated ecosystem.

## Moca Network’s Future: From Digital Identity to Reputation Economy

Moca Network aims to extend digital identity to propose a new paradigm of ‘reputation economy,’ which goes beyond mere identity verification. Based on user credentials, this concept involves measuring reputations and utilizing them across various services, allowing partner companies to form reputation scores based on Web2 and Web3 data, creating new value.

The reputation system is expected to find applications in DeFi. Currently, DeFi heavily depends on asset collateral due to a lack of individual credit, imposing excessive collateral requirements that hinder market expansion. Moca Network can enable partners to request user credential lists and measure reputation to offer credit-based financial services similar to traditional finance. This approach reduces collateral burdens and improves financial service accessibility for users. For instance, users with high reputation scores may enjoy lower collateral and interest rates when applying for loans on lending protocols.

The reputation system can also address challenges in the AI era. With an upsurge in AI-generated content on platforms like X and Discord, and AI agents like aixbt influencing investor decisions, verifying the reliability of AI agents has become essential.

Moca Network’s digital identity and reputation data can verify the trustworthiness of various digital objects, including AI agents and physical robots. By building reputation systems between AI agents and users, Moca Network can foster true decentralization, accelerating AI agent adoption and supporting the development of a Fully Autonomous Internet.

Thus, Moca Network aims to establish a reputation economy based on digital identity, opening a new chapter in the digital economy.

## Conclusion

Moca Network has gone through considerable development stages. In 2023, MOCA 1.0 focused on building a community through the MocaVerse NFT minting, MOCA 2.0 expanded the ecosystem based on Moca ID and partnerships, and MOCA 3.0 aims to build a comprehensive digital identity infrastructure. Despite market volatility and challenges, Moca Network has consistently delivered on its roadmap, currently collaborating with major platforms like SK Planet, MyAnimeList, and OneFootball to realize the potential of digital identity infrastructure.

The next phase for Moca Network involves transitioning to a more open and decentralized ecosystem. Focusing on expanding community participation through Moca DAO, actively supporting the developer ecosystem, and promoting services based on Moca Network, the goal is to evolve into a community-driven decentralized protocol similar to Ethereum, establishing a truly open digital identity infrastructure.

Moca Network’s technology opens new possibilities across various industries. For instance, Europe’s MiCA (Markets in Crypto-Assets) regulation advances on-chain credentials for regulated use cases like zkKYC and token launchpads, aligning with Moca Network’s vision. Moca Network provides trusted digital identities to aid regulatory compliance while expanding usage in DeFi, entertainment, and education. In the AI era, secure digital identities are crucial, and Moca Network plays a pivotal role in enabling this. The changes and innovations Moca Network will bring warrant close attention.