As LiveId now supports information cards for authentication it seems that Microsoft are getting the whole machine behind the technology publicly.

You can now sign into Hotmail and various other sites using a self-issued card.

But the process seems kind of funny to me: the identity metasystem was designed for Identity Providers to run their own STS - and for site providers to act as relying parties.

However the current model for LiveId is topsy-turvy. LiveId acts as a RP and your computer acts as the STS.

This means that web sites that want to use CardSpace for authenticating LiveId based users need to have a system of HTTP redirects in place - this messes with the security of the identity metasystem and gives the user an inconsistent experience.

I hope that Microsoft soon expose a LiveId STS and then issue managed Information Cards to LiveId users. Then web sites will be able to act as Relying Parties, LiveId can act as the STS, and the user gets the true benefits of CardSpace  -  greater security and a better user experience.