After small states led the way in regulating cryptocurrency digital asset services, the concept of digital identity is becoming an important cornerstone for furthering cohesion policy goals of the European Union (EU). Since Malta legislated the regulatory frameworks for virtual assets in 2018, other island states advanced in regulating blockchain applications. Dominica recognised cryptocurrencies as legal tender and the Marshall Islands defined decentralised autonomous organisations (DAOs) as limited liability companies.These examples show Web3 can be governed, however, digital credentials have yet to close the gap between pseudonymous technologies and due diligence processes for real-world services — which typically require identifying their ultimate beneficial owners. DAOs are challenged to find effective methods to identify their members (who often want to remain anonymous), comply with regulatory requirements and enforce membership criteria. The competition among small states, both within the EU and globally, forces national higher education institutions participating in the SEA-EU initiative to educate their students for using digital credentials, as well as issue their diplomas in a format usable by DAOs but also compliant with EU standards. Thus, the Web3 Identities for DAOs and Education (WIDE) project aims to strike a balance between user needs and European compliance, investigating how students use bridging technology for transforming their EU digital identities into DAO-compatible credentials. To answer this question, this project employs a mixed-method approach, combining cognitive walkthroughs with a quantitative user survey. The findings will describe how graduates use the WIDE digital identity bridge to vote on options for their graduation celebration.****

Keywords

European Digital Identity, Web3, Blockchain, Distributed Ledger Technology, Interoperability, Education Certificates, Small Scale