The future solution for, in some cases, inadequate management with our identity information can lie in NFT-based DIDs (decentralized identifiers) / VCs (verifiable credentials), or i.e. lately proposed soulbound tokens.
One of many benefits of DIDs/VCs is that:
“The end-user is in control of their information and decides how much they want to interact with or be targeted by businesses and marketers — if at all.”
With the ongoing turmoil it wouldn't be a surprise to see outflow of users from centralized exchanges to those where users are reliant exclusively on themselves.
In decentralized financial system the services are consistently accessible, and no centralized organizations can block installments or deny users admittance to anything.
On CEX most of the control over the account remains in the hands of the third party which runs the exchange.
As such, this third party can be hacked, mismanaged, go bankrupt, etc.
What we're seeing with the FTX contagion is purely people's fault.
Self-custody
- signifies that only you have the possession of your digital money or other digital assets because you control the private key.
Let's iterate on this over and over.
If trust is being misused and eventually exploited for illicit actions, it is very hard to get it back, if at all.
Regardless whether it is in relationship with S/O, any third parties or, in this particular case, CEX.
