The Coinbase Buys Distributed Systems Inc. Startup
The Coinbase Exchange has acquired San Francisco-based startup Distributed Systems Inc., the leading developer of a decentralized user identification solution. In an official blog, one of the managers of the Identity at Coinbase project told that distribution systems can help the cryptocurrency marketplace work on new ways of identifying users within the framework of plans for creating an open financial system.
In the message published in the blog, the type of identification in which users retain control over personal information is described in detail, not allowing it to be copied. Referring to the example of the social security number, it is said that every time he is asked to provide, the user has a copy that is equivalent to the original record.
Acquisition of Distributed Systems Inc. will allow Coinbase to work on the decentralization of data identification. At the same time, the company should clearly define where the solution will be used, taking into account the process of anonymity, confidentiality and other important problems.
Note that the company Distributed Systems Inc. was founded in 2015. Its main task was to develop a data identification standard for dApps, which was named Clear Protocol. Last year, the startup was able to attract investments to the sum of $1.7 million. At the same time in 2018, the company set a goal to attract from $4 to $8 million of investment. However, at the end, it was decided to sell a startup to the Coinbase exchange.
This isn't the first time that a trading platform buys other companies in order to expand the range of its services. In June, she was acquired by a securities dealer-Keystone Capital Corp. It was an addition to the activities of Venovate Marketplace, Inc. and Digital Wealth LLC. As a result, the company should be able to achieve the goal of becoming a fully regulated brokerage dealer in the US Securities and Exchange Commission. Acquisition of Distributed Systems Inc. will allow the crypto exchange to expand the number of services provided and subsequently promote its activities to non-critical financial products.