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Its building on Bitcoin microsoft bitcoin. Announced on May 13,Project ION is an open-source, Layer 2 network built out of the public key infrastructure protocol Sidetree. The idea here is to make user names obsolete.

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Instead of logging into Facebook, email or any other application with a username, users can use a digital decentralized ID DID instead. This DID, like a private key when signing a transaction to the Bitcoin network, proves ownership.

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Individual ION nodes on the secondary network will be responsible for keeping track microsoft bitcoin these DIDs and timestamping them onto the Bitcoin microsoft bitcoin for reference and attestation.

To create an ID, a user would wrap a public key into a DID creation document on the ION network, signing this input with their private key and sending it to a node on the network. This ION node then archives the metadata without accessing the data itself as a DID document for other nodes to reference.

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Every time a user updates their DID state — by creating a sub-ID microsoft bitcoin updating metadata, for example — the corresponding node updates these changes in the DID document. And whenever a batch is anchored on the blockchain, each ION node, which is constantly monitoring the blockchain, will identify the hashes as originating from the ION network.

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Nodes can choose microsoft bitcoin batch transactions and monitor the chain, while others that wish to cut operation costs may simply monitor the chain to keep DID states up to date. In practice, it would work like this: When sending a DID to a verifier, this party would challenge a user to resolve the state of this identity with its corresponding DID document on the network to prove ownership.

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Users can create various identities under this schemata for any number of use cases. According to the announcement, a handful of companies have shown early interest in running ION fintech bitcoin trading, including Bitcoin hardware and security firm Casa, data center Equinix and internet security company Cloudflare.

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