IOG Halts Atala Prism Project Initially Targeting Ethiopia

Input Output Global (IOG), the key player behind the Cardano blockchain, has halted the progress of its promising Atala Prism initiative, which was aimed at transforming educational and identity management frameworks in Ethiopia. This news, announced on the Midnight Discord and subsequently confirmed through several internal sources, raises concerns as there has been no official announcement made to date.

The Atala Prism initiative was designed to harness the Cardano blockchain to enable decentralized identity solutions. The proposed technology aimed to provide secure issuance, ownership, and management of digital identities using Decentralized Identifiers (DIDs) and Verifiable Credentials (VC). In October 2021, the project attracted significant media coverage following IOG’s announcement of a partnership with the Ethiopian government to implement a blockchain-based national ID system for students and teachers.

The initiative sought to digitally verify academic achievements, remotely assess school performance, and enhance education and employment opportunities across the country. It aimed to create an immutable record of educational accomplishments for five million students, 3,500 schools, and 750,000 teachers, enabling the identification of underperformance areas and optimal distribution of educational resources.

IOG Halts the Atala Prism Initiative

However, recent developments seem to have significantly altered the course of the project. According to a Discord message from a user named johnny5i, the discontinuation of the Atala project was revealed during an online meeting. “IOG has just dismantled Hyperledger Identus. The Identus DID initiative is basically nonviable now,” johnny5i reports.

To compound the situation, a large number of Atala team members, including the entire product team, have been laid off. “They have let go 25 individuals, including the platform engineering staff, Esteban, and Faye, who was responsible for channel community outreach,” johnny5i adds.

Despite the termination of the Atala Prism project, IOG has indicated that a small subset of the team will transition to Input Output Engineering (IOE) to support and advance the Hyperledger Identus Project. Esteban, a former IOG engineer, shared on Discord, “Regrettably, the majority of Atala, including all members of the Product team—Fay and myself included—have been released. However, IOG has pledged to continue the Hyperledger Identus Project.”

He further commented, “Concerning Atala products and Atala commercial endeavors, it’s likely safe to conclude that they will not move forward. […] I also want to stress that any former IOG staff member is free to choose whether they want to stay involved with Identus.”

Matt K, the former CTO of Atala at IOG, shared an emotional farewell message with his team on Discord, reflecting on the closure of a crucial chapter and its effect on the team: “It’s with great sadness that I bid farewell to so many gifted and committed colleagues […] I take immense pride in the innovative, self-sovereign identity solution we developed, despite the obstacles.”

He added, “To the few remaining team members who will oversee Identus at IO, I wish you the best as you navigate this transition. I trust that your talent and resolve will continue to advance Identus.”

The closure of Atala Prism raises significant questions about the future of Cardano-based identity solutions in regions like Ethiopia. “As of now, details regarding the future of the PRISM Sandbox are unavailable; I anticipate that at some point, updates will be provided,” Esteban states.

[UPDATE: 11:11 am GMT+2] Charles Hoskinson responded via X: “This serves as a reminder that prism became Hyperledger Identus approximately 10 months ago. It’s an Apache2 open source framework for identity applications. IO Engineering maintains the core team along with community contributions, and products like Midnight, RealFi, and Lace will incorporate the framework for their identity requirements. This is a standard practice in the open core ecosystem and aligns with how self-sovereign identity (SSI) should function. Identity should not be commodified. That makes you the product. Identity ought to enhance the user experience with other products.”

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