Digital Wallets and Trust

In our modern digital landscape, in a trustless world, where we are learning of hacks and vulnerabilities daily, many have concluded our future includes a digital wallet to hold our digital rendering of credit cards, licenses, subscriptions, tickets, credentials, badges - enabling us to convey verifiable artifacts which represent facets of our wealth, idenity, evidence of our history, accounts - and even the rendering of the skills and competencies we have mastered through our learning experiences and the achievements we have earned through our interactions with others who assess us.

Our advocacy for digital wallets bears alot of resemblance to the "mattress-stuffing" mentality some may recall back in the 30's when banking troubles frustrated the economy during the great depression - leading many to use their matress as a storage center for important papers - and cash.

Our desire for convenience, local control, storage and seclusion from others is - to a point, driven by our fears. No? We seek to protect privacy like a lock-box we hide in our closet we believe is secure.

Now add mobility and the desire for portability, safety from failed institutions, loss of access to what we have earned or achieved, we now have the movement to suppliement our capabilities with Digital Wallets.

I think it is worth unpacking this comparison critically to help us address and contemplate how we address the primary and important use cases supporting actors, responsibilities, trust, convenience, storage, exchange, verification and requirements addressing a diverse population of users, capabilities and needs:

1. False sense of control: Just as hiding money under a mattress gives an illusion of control, managing our own digital wallets can provide a false sense of security. In reality, most individuals lack the expertise to truly secure their digital assets.

2. Technological complexity: Keeping a "digital mattress" safe is far more complex than protecting physical cash. It requires constant vigilance against evolving cyber threats, regular software updates, and a deep understanding of cryptography and network security. The other day, I stuffed a few dollars in my Jeep console - and thought, why did I do that? Convenience and quick access I think was more important than safe guarding the currency from potential risks of theft or loss.

3. Misplaced distrust: While skepticism of banks or government or instititions are understandable, the alternative (self-management) often exposes individuals to greater risks and effort. Similarly, distrust in established digital payment systems might lead to riskier DIY solutions.

4. Overlooking institutional safeguards: Banks offer protections like FDIC insurance originally established addressing the fear and anxiety displayed during a dark period in history. Fraud prevention is a second benefit - given limited access. Digital wallet promoters often downplay the value of such institutional safeguards, much like mattress-stuffers ignore bank security measures.

5. Time and effort burden: Managing your own security is a significant responsibility. Just as protecting a cash-stuffed mattress requires constant worry, securing a digital wallet demands ongoing attention and expertise many users don't possess.

6. Scalability issues: As wealth grows, the "mattress" approach becomes increasingly impractical. Similarly, managing large sums or quanity in digital wallets can become unwieldy and risky for individuals.

7. Lack of convenience: Stuffing cash under a mattress limits financial flexibility. Likewise, over-reliance on self-managed digital wallets can complicate everyday transactions and financial management.

8. Vulnerability to personal mistakes: A moment of forgetfulness or a simple error can lead to irretrievable losses in both scenarios. Of course we can developsafe guards, but they too have to be relied upon and trusted - like backups and recovery - do we test them?

This comparison reveals a crucial point: the push for individual management of digital assets often underestimates the complexity of the task and overestimates the average person's capability to handle it securely. While it's important to maintain a critical stance towards institutions and tech companies, we must also recognize the value of specialized security infrastructure and expertise.

The challenge lies in finding a balance between personal control and leveraging institutional protections, all while pushing for greater transparency and accountability in our digital ecosystems. This is not easy work to grasp as we evolve in a community - an ecosystem or marketplace - with many competing interests.

We often have varied views of the future - which are conveyed and discussed in industry meetings across silioes of specialization. There are many specialized groups convening online or in-person workgroups organized to address the varied use cases brought forward by their stakeholders - overlaping learner and employent portfolios, digital wallets and platforms to facilitate the stage gates and transactions of our learning to earning journey.

If you are interested, join Internet2 , W3C , or IEEE on #NextGenCredentials broadly - or for #Edtech specifically at 1EdTech Consortium , Access 4 Learning Community and Postsecondary Electronic Standards Council ... The effort participating is worth the investment, helping develop insights and clarity as the future unfolds incrementally.