Who Are You Even? A PM’s Dive Into Web3 Identity (With Fewer Buzzwords, Promise)

So there I was, sipping coffee, minding my own product roadmap, when someone said,
“Web3 identity will change everything.”

And like any good product manager who enjoys a bit of chaos and a lot of curiosity, I said:
Cool. But… how?

Let’s talk about Web3 identity. The good, the bad, the weird, and what it means for products — especially if you’re the one making them.

🚀 What Is Web3 Identity, Anyway?

In Web2, your identity is scattered: Facebook owns one piece, Google another, and that one app you used once in 2017 still has your username and a blurry profile pic.

Web3 identity says: “What if you owned it all yourself?”

Think of it like a passport stored in your crypto wallet. It’s decentralized, self-sovereign, and follows you from app to app, without needing to re-sign up 100 times or give away your email address like candy.

In short: You’re the owner of your data, your rep, and your online self.

🌈 The Pros: PMs, Rejoice (Mostly)

1. One Identity to Rule Them All

Imagine never having to build another sign-up form again. A user's Web3 wallet becomes their login, profile, and reputation — all in one. No more forgotten passwords. No more friction.

2. Real Ownership = Real Loyalty

Users who own their data and assets are more likely to engage deeply. Give them NFTs, badges, or on-chain history, and you’ve got community buy-in with skin in the game.

3. Interoperability Across Products

A user’s identity and assets can move across platforms. This means shared reward systems, smoother cross-app UX, and less time rebuilding the wheel for every new feature.

4. Privacy by Default

No more hoarding user data to prove your app has “value.” Web3 flips that idea: users give access, not the other way around. You design with them, not around them.

😬 The Cons: Don’t Burn Your PM Roadmap Yet

1. The UX Still Feels Like a Hacker Party

Wallets? Seed phrases? Gas fees? For most users, Web3 onboarding feels like assembling IKEA furniture blindfolded. And yes, they will lose their seed phrase.

2. Identity ≠ Personality

Just because someone logs in with a wallet doesn’t mean you know who they are, what they care about, or what emoji they like reacting with. You lose a lot of behavioral data that Web2 spoon-fed you.

3. Too Much Freedom Can Be… Confusing

Giving users full control of identity means no central password resets, no customer support magic wands, and no easy way to “ban” bad actors across systems. Wild west vibes.

4. Regulatory What-Ifs

Data protection and compliance are fuzzy in Web3. As PMs, we’re used to rules — or at least pretending we follow them. Web3 still hasn’t decided which playbook to use.

🧠 What It Means for PMs (Spoiler: A Lot)

If you’re building in Web3 or even Web2.5, you’ll need to rethink:

• Onboarding flows: How do you teach wallet-based login without overwhelming users?

• Trust models: What replaces the email verification + Stripe combo you’ve relied on?

• Feature design: Can you build value without owning the user's data?

• Community: Are you designing with users who now have more power than ever?

Product managers need to evolve from gatekeepers of features to architects of ecosystems. And yes, that’s as fun as it sounds.

🎯 TL;DR (Too Lazy, Didn’t Read)

• Web3 identity puts users in control of their data and login credentials

• It’s amazing for interoperability, ownership, and privacy

• It’s awful for UX, support, and understanding your users

• As a PM, you’ll have to design smarter, not just faster

Final Thought (and a Meme in Spirit)

Web3 identity is like giving every user a magic cloak.
It’s powerful. It’s portable.
And sometimes, they vanish without warning.

Design accordingly.