What’s Next In Web3? Privado ID's Predictions for 2025

December 19, 2024

Community

At Devcon, we had the privilege of learning from the brightest minds in the web3 industry, gaining insights into the latest trends and challenges shaping the future of decentralized technologies.

Inspired by these conversations, we’re making bold predictions for new narratives that we believe will define the future of blockchain and identity:

AI Agent Identity
KYC & Finance
Institutions are In
Wallets Embrace ID for UX

These ideas are our bet for the next wave of innovation, and we look forward to revisiting them at Devcon 2025.

AI Agent Identity: The Future of Trusting AI

As autonomous AI agents became the largest unbanked population on the Internet, the importance of giving them reliable identities grows more urgent. Unlike bots, these new agents make their own decisions, respond to changing conditions, and handle complex tasks. Without a verifiable way to track origins, actions, and who is accountable, decentralized environments may become messy places ready for misuse and exploitation.

Privado ID’s Know Your Agent (KYA) framework solves this need for verifiable identities. Inspired by ideas from KYC rules in finance, KYA provides AI agents with accountable identities that people, institutions, and even other agents, can rely on. Decentralized apps can now know exactly who or what they are dealing with, and this brings transparency and reliability. As agents stamp their behavior to public registries such as onchain attestations, KYA sets a strong foundation for more interoperable information exchanges. Armed with these identities, AI agents can build reputations and work across many platforms without new complications.

As AI agents gain the capability to authenticate and execute transactions on behalf of users, financial institutions and banks must rethink the existing Know Your Customer (KYC) frameworks

_{Ravikant Agrawal, Director of Growth at Privado ID}

In 2025, AI agents may handle trading, run governance, manage supply chains, and more. KYA makes it easier and safer for AI agents to work in open markets. This bridges the gap between automated tasks and the trust people need before embracing such disruptive tools widely.

KYC & Finance: Reusable Verifications for a More Interoperable Future

The financial world is changing quickly and the old pattern of proving the user’s identity again and again for each platform is slow and costly.

Reusable KYC uses verifiable data that works across many platforms. After finishing one set of verifications with Privado ID, a user brings those proofs to various places, from apps to blockchains and even legacy systems. This saves time, reduces costs and improves the user’s experience.

For fintech and banking companies, the benefits are even larger. Financial firms and decentralized protocols are already plugging into Privado ID’s standards to access pre-verified identities without repeating the same steps. Major players like HSBC and Sony Bank have already tested these solutions through proof of concepts built on top of Privado ID’s tools and infrastructure. For example, work with Deutsche Bank shows how banks can leverage new web3 tools to create and solve corporate and individual identity problems.

In 2025, reusable KYC data may become a global practice. Privado ID’s approach to reusable KYC data makes the whole process easier, cuts waiting times and meets compliance. This new model protects KYC data, keeps private, and makes it easy to carry from one app to another.

Institutions are In: Adoption Through Key Partnerships

As decentralized identity gains relevance, reputable corporations and consulting companies step in to speed up its spread. Privado ID stands at the center of this shift, working closely with major players to create privacy-preserving digital identity solutions worldwide.

Telefónica Tech is a key ally in this effort. With Privado ID’s expertise, Telefónica Tech pushes for wider implementation of private digital identities. This teamwork takes advantage of large-scale needs while respecting strict privacy and compliance demands.

Leading consulting firms like KPMG, Settlemint, and Mastercard are also becoming system integrators, implementing decentralized identity projects for all types of enterprises. They craft proofs-of-concepts and place new decentralized identity solutions in the hands of their clients. As these major names in finance, technology, and consulting back Privado ID’s solutions, they prove the strength behind decentralized identity. Their participation shows how serious organizations now work on these new approaches into the global marketplace.

In 2025, the growing support from known institutions marks a turning point for decentralized identity. With partners like Telefónica Tech, KPMG, and Mastercard leading these efforts, Privado ID is ready to implement identity solutions that respect privacy and cross borders easily.

Wallets Embrace ID for UX: From Crypto Holders to Identity Holders

In 2025, crypto wallets will serve as more than just for holding your crypto. They will act as tools for both identity and financial transactions.

On the safety side, wallets will grow stronger with social recovery options, multisig features, and zero-knowledge proofs. When combined with Privado ID’s tools, a wallet can use ZK-wrapped technology that connects a person’s Ethereum address to their decentralized identity without revealing anything private. Even Vitalik is advocating for these ideas.

Working with Privado ID’s reusable data, wallets make everyday use friendlier, protect personal information, and bring together helpful identity tools. This shift follows the idea that wallets are becoming an inherent part of the user, where proving who you are matters as much as moving coins around. A wallet might handle payment requests, move assets across different networks, and still keep sensitive data hidden to prevent a dystopian world without privacy:

Privado ID’s technology helps wallets handle tricky tasks like moving identities across different chains. With unified identity, users jump between apps, and blockchains without sharing personal details again and again. This reduces hassles, respects privacy, and fits the basic principles behind open systems.

The future for wallets goes beyond holding assets. They are turning into identity products that treat people’s data as top priority. With Privado ID at their core, these wallets create a web3 world that prioritizes simplicity, privacy, and interoperability.

If you are interested in learning more about Privado ID and the capabilities of our privacy first digital identity technology, please contact our growth team.