Addendum — Decentralized Identity: How 11 Mega Trends are Driving Adoption and Shaping the Future

Global Challenges for Impact: An Overview of Humanity’s Most Pressing Issues

In our article “Decentralized Identity: How 11 Mega Trends are Driving Adoption and Shaping the Future,” we explained the transformative power of decentralized identity technology and its role in shaping the future of open ecosystems and data spaces.

To provide a comprehensive understanding of the subject, we utilized a 2 x 2 Matrix to analyze the driving forces for adoption. This matrix, a crucial tool in our analysis, helps to prioritize the trends based on their impact and feasibility. It provides a clear roadmap for understanding the future of decentralized identity technology.

Decentralized Identity Driving Forces: Impact, Feasibility, and Mega Trends (Source: Spherity GmbH)

Methodology for Impact Evaluation: Our approach involved identifying and analyzing global issues that are defining a metric for assessing the impact of a mega trend. We sourced information from the World Economic Forum, Global Issues, and other reputable sources. The higher a mega trend’s potential to contribute to the creation of a digital backbone that enables solving one or more global issue, or in case the mega trend is even a prerequisite for such a backbone, the higher its impact is.

The objective of this addendum is to present a list of global issues that are defining our impact assessment metrics. These issues, which range from environmental damage to social cohesion erosion, are currently the most pressing problems that humanity is facing.

It’s important to note that these issues are interconnected and often reinforce each other. For example, climate change can exacerbate food and water shortages, which can lead to conflict and displacement of people. Similarly, poverty and economic inequality can make it more difficult for countries to invest in measures to mitigate climate change or protect biodiversity.

In conclusion, the 2x2 Matrix is a vital tool for understanding and prioritizing the mega trends driving the adoption of decentralized identity technology. By analyzing the impact and feasibility of each trend, we can gain a clearer picture of the future of this technology and its potential to address some of the world’s most pressing issues.

Based on the information gathered from the World Economic Forum, Global Issues and other reputable sources, here are the top world problems that humanity is currently facing and this defined our impact assessment metrics:

1. Extract-Use-Burn-Dump Economy: The current global economic model, often described as an “extract-use-burn dump” economy, is causing significant environmental damage. This includes the environmental impact of mining, waste, pollution, and the depletion of natural resources. There is an urgent need to transition to a circular economy, where waste is minimized and resources are reused and recycled as much as possible.
2. Green Washing, Climate Action Failure, Climate Change, Extreme Weather, and Global Warming: This is the most pressing issue facing the world today. The failure to mitigate and adapt to climate change is the key concern for business leaders, NGOs, academics, and others. The impact of climate change is already being felt with increased climate impacts, from droughts to floods to rising seas.
3. Biodiversity Loss: The loss of biodiversity is a major concern as it threatens the balance of ecosystems and can lead to a decrease in ecosystem services.
4. Social Cohesion Erosion and Poverty: Despite progress in some areas, poverty remains a global issue, with billions of people still living in extreme poverty. Social Cohesion is eroding in developed countries widening the wealth gap and fueling social conflicts.
5. Human Migration: Forced displacement and migration due to conflicts, climate change, and economic factors are significant global issues affecting millions of people worldwide.
6. Food and Agriculture Issues: Issues related to food and agriculture, including food security, are a major concern. This includes the impact of climate change on agriculture, decreasing Ukrainian grain exports, the use of genetically modified organisms (GMOs), and issues related to food waste.
7. Health Issues: Global health issues, including the spread of infectious diseases and the rise of non-communicable diseases, are a major concern.
8. Arms Control and the Arms Trade: The proliferation of weapons and the global arms trade are major causes of conflict and suffering.
9. Conflicts in Ukraine and Africa: The ongoing conflicts in Ukraine and various regions of Africa continue to cause significant loss of life, displacement of people, and political instability. The situation in Ukraine, in particular, has led to heightened geopolitical tensions.
10. Trade, Economy, and Related Issues: Economic issues, including trade disputes, economic inequality, and the impact of globalization, are major concerns.
11. Corporations and Their Impact: The role of corporations in society, including their impact on the environment and on local communities, is a major issue.
12. Geoeconomic Confrontation and Geopolitics: Geopolitical issues, including conflicts, trade wars, rising US-China tensions, and the impact of nationalistic policies, are major concerns.
13. Natural Resource Crises and Access to Critical Raw Materials: The increasing scarcity of natural resources and access to critical raw materials, driven by overconsumption, unsustainable extraction, and environmental degradation, is leading to geopolitical tensions and trade disputes, necessitating a transition to a circular economy to ensure sustainable use and longevity of these resources.
14. Global Debt Crisis: The rising global debt, exacerbated by increased borrowing during the COVID-19 pandemic, raises concerns about potential defaults and economic instability, necessitating careful debt management and economic recovery strategies.
15. Cyber Warfare: The increasing prevalence of cyber attacks, both state-sponsored and by independent actors, poses a significant threat to global security and stability. The potential for cyber warfare to disrupt critical infrastructure, economies, and democratic processes is a growing concern. Raising need to protect export-controlled technical data (CTD) of dual use and defense goods as well as critical infrastructures.

Sources:

• World Economic Forum — The Global Risks Report 2020
• World Economic Forum — The Global Risks Report 2021
• World Economic Forum — The Global Risks Report 2022
• Global Issues
• World Bank — Global Debt Database
• International Monetary Fund — Global Debt: Challenges and Opportunities
• European Commission — Critical Raw Materials
• United Nations Environment Programme — Resource Efficiency
• Ellen MacArthur Foundation — What is a Circular Economy?
• Council on Foreign Relations — Cyberwarfare
• Brookings — The state of the world’s cyberwarfare arms race
• NATO — Cyber Defence
• International Organization for Migration
• United Nations Migration
• World Bank — Migration and Remittances
• World Economic Forum — Generative AI: Agame-changer society needs to be ready for