Input Output Global (IOG), the powerhouse behind the Cardano blockchain technology, recently announced the cessation of its ambitious Atala Prism project. This initiative was initially designed to revolutionize educational and identity management systems in Ethiopia. Although this significant update has been shared via the Midnight Discord and confirmed by multiple internal sources, a formal statement is yet to be released by IOG.
The Vision Behind Atala Prism
The Atala Prism project was crafted to harness the capabilities of the Cardano blockchain in delivering decentralized identity solutions. Its core objective was to enable secure issuance, ownership, and management of digital identities through Decentralized Identifiers (DIDs) and Verifiable Credentials (VC). Back in October 2021, the project garnered considerable media attention following IOG’s announcement of a partnership with the Ethiopian government. The goal was to implement a blockchain-based national student and teacher ID and attainment recording system.
The envisioned solution aimed to digitally verify grades, monitor school performance remotely, and enhance educational opportunities and employment prospects across Ethiopia. The project was poised to establish a tamper-proof record of educational performance for five million students, 3,500 schools, and 750,000 teachers, with the goal of improving resource allocation and addressing areas of under-achievement.
IOG Discontinues Cardano’s Atala Prism Project
Recent developments have dramatically altered the trajectory of the Atala Prism project. According to a message on Discord from a user known as johnny5i, the project’s termination was disclosed during an online meeting. “IOG has just gutted Hyperledger Identus. The Identus DID program is basically dead in the water,” stated johnny5i, indicating the cessation of the initiative.
The situation has been further compounded by the laying off of a significant number of team members associated with the Atala project. This includes the entire product team. “They have lost 25 people including the platform engineering team, Esteban, and Faye, the channel community outreach person,” reported johnny5i.
Despite these setbacks, IOG has confirmed that a small segment of the team will be transitioning to Input Output Engineering (IOE) to continue the development and maintenance of the Hyperledger Identus Project. Esteban, a former engineer at IOG, shared on Discord, “Unfortunately, the majority of Atala, including all members of the Product team—Fay and myself included—have been let go. However, IOG has expressed a commitment to continue the Hyperledger Identus Project.”
He further mentioned, “Regarding Atala products and Atala commercial pursuits, it’s safe to assume they will not be developed. […] I also emphasize that any former IOG employee is free to decide whether they wish to remain engaged with Identus.”
Reflections and Future Prospects
Matt K, the former CTO of Atala within IOG, shared a heartfelt message with his team on Discord, reflecting on the conclusion of a significant chapter and its impact on the team. “It’s with a heavy heart that I say goodbye to so many talented and dedicated colleagues […] I’m immensely proud of the innovative, self-sovereign identity solution we brought to life, even in the face of challenges,” he expressed.
“To the few team members remaining who will maintain Identus at IO, I wish you the very best in navigating this transition. I have no doubt that your talent and determination will continue to propel Identus forward,” he added.
The discontinuation of Atala Prism raises questions about the future of Cardano-based identity solutions in regions like Ethiopia. “As of today, there are no details about the future of the PRISM Sandbox; I assume, at some point, updates will be shared,” Esteban noted.
Community Reactions and Future Outlook
UPDATE: 11:11 am GMT+2 Charles Hoskinson, a key figure in the Cardano community, reacted via X: “This is just a reminder that prism became Hyperledger Identus about 10 months ago. It’s an Apache2 open-source framework for identity applications. IO Engineering maintains the core team alongside community contributions, and products like Midnight, RealFi, and Lace will use the framework for their identity needs. This is a common practice in the open core world and how SSI should work. Identity should not be the product. That makes you the product. Identity should improve the experience of other products.”
At the time of reporting, the value of ADA stood at $0.40.
