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On 9 March 2023, the IOTA Foundation opened a Request for Proposals (RFP) for an IOTA-based login system built on OpenID standards. The RFP invited developers or companies to apply for funding to build out solutions that combine IOTA Identity with the OpenID Foundation standards of OpenID Connect (OIDC) and Self-Issued OpenId Provider (SIOP). Ultimately IOTA chose a proposal by walt.id that covers both Web2 and Web3 solutions. [3]
Web2 login
The IOTA Foundation encourages the development of two separate login systems: OIDC and SIOP. OIDC, which is dubbed the Web2 login system, is what most people use regularly. Buttons such as “Login with X” contact the centrally-hosted identity provider to provide your information to a website. [34]
Web3 Login
The second login system is geared towards web3. Self-Issued OpenID Provider (SIOP) is a standard in development by the OpenID Foundation that will improve the above-described login system with even more privacy. IOTA has dubbed this the Web3 login system and it is very much still under research. This standard allows a similar user experience as the Web2 login, but without the need for a centralized identity provider.
SIOP allows users to directly authenticate peer-to-peer with the website without having to communicate with a centralized component. Afterward, the SSI wallet makes it possible to exchange Verifiable Credentials and provide any additional information that would normally be requested from the identity provider. While this solution is superior in terms of privacy, it also requires integration efforts by the website, probably hindering immediate mass adoption of the technology as of now. To provide solutions in the mid and the long term, the IOTA Foundation is therefore interested in both Web2 and Web3 solutions simultaneously. [3]Ultimately IOTA chose a proposal by walt.id that covers both Web2 and Web3 solutions. [4]
References:
[1] Request for Proposals: Login With IOTA: https://files.iota.org/comms/Request_for_Proposals_Login_with_IOTA.pdf
[2] IOTA official webpage: www.iota.org
[3] Creating a Privacy-Preserving Login System Login With IOTA is Coming!: https://blog.iota.org/request-for-proposals-login-with-iota-walt-id/
[4] Login With IOTA is Coming!Creating a Privacy-Preserving Login System: https://blog.iota.org/request-for-proposals-login-with-iota-walt-id/
[5] IOTA Q4 2023 Progress Report: https://blog.iota.org/q4-2023-progress-report/