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Vitalik Buterin explained that implicit pluralistic identity systems, which rely on overlapping ID types without a central issuer, may not perfectly match the ideal N² cost curve, but still maintain key privacy and decentralization properties due to their steeper identity acquisition cost.

Vitalik Buterin argued that pluralistic identity systems are best suited to approximate the ideal N² cost curve, offering flexibility to generate multiple identities without giving users unchecked power to create mass pseudonyms.

Vitalik Buterin proposed that the theoretical ideal for digital identity systems is to allow N identities per person at a cost that grows quadratically (N²), thereby preserving pseudonymity while discouraging mass identity farming.

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