Don't call me. I'll call you.

Clearly, for the digital economy to thrive, Web 2.0, the burgeoning media and economic revolution that will power its expansion, is only half of an important equation. The other half is Identity 2.0. 

Identity 2.0 reverses the current online standard in which the business or service provider has the economic power to compel the buyer to hand over chunks of his or her personal identity to process even the most mundane transaction. It’s a system that works primarily to the advantage of the seller.

Phil Windley has been addressing the issue of identity for some time in his web log, Technometria, including a topic guide on a digital ID framework and a Web log category on ID, privacy and security.

In this post, Windley describes the difference between Identity 1.0 and Identity 2.0 thusly:

Identity 1.0 is analogous to having to have the clerk at the convenience store call the driver’s license bureau everytime you present your credential to get your birthday. Identity 2.0 is analogous to how credentials work in the real world: distributed and user controlled — the driver’s license bureau doesn’t know where you’re presenting its credentials and who’s accepting them (emphasis supplied).

Via Windley, Wired has published “One Login to Bind them All,” which reinforces the point. Scattered bits of digital identity may be – sooner rather than later, given the speed at which Net developments move – reunited under our control.

Key quote:

According to their vision [Sxip Identity], a company like Amazon.com would no longer demand that you hand over tons of personal information before giving you an account and selling you a book. Instead, you, as the would-be purchaser, would offer Amazon whatever information you feel comfortable giving out – such as your name, address and payment details – and the retailer would be put in the position of accepting or rejecting your purchase.

Why is this important? Because when a few hundred million consumer controls their online identities, vendor identity policies will change.

It could even move government to do business differently. 

May I suggest that the first to go are the lawyer-inspired privacy policies that banks and financial institutions are required to send me so that I can exercise my right to some semblance of anonymity? I mean it is my information, right? Right?

If the migration of business and government to the Web is going to succeed, Identity 2.0 will be absolutely essential. Because for both, one request should always be honored.

Don’t call me. I’ll call you.