papers/hanzo-identity-nft/sections/01-introduction.tex

\section{Introduction}


Decentralized identity systems face a trilemma: they must be (1) globally unique, (2) human-readable, and (3) decentralized. Traditional DNS achieves the first two properties through centralized registrars, while blockchain addresses achieve uniqueness and decentralization at the cost of readability.

Hanzo Identity resolves this trilemma through NFT-bound identities secured by economic stake. Each identity (e.g., \texttt{@alice}) is represented by an ERC-721 token, with ownership transferable via standard NFT mechanisms. The staking requirement creates economic cost for identity acquisition, preventing mass registration (squatting) while enabling market-based allocation of premium names.

\paragraph{Contributions.} This paper makes the following contributions:
\begin{itemize}
    \item A multi-network identity registry supporting six blockchain networks with namespace-aware resolution.
    \item A length-based pricing model with exponential scaling that creates natural scarcity for short identities.
    \item A delegation mechanism for stake-weighted governance participation without identity transfer.
    \item Empirical analysis of 50,000+ registrations demonstrating pricing model effectiveness.
\end{itemize}