What is decentralized identity?
2023-04-29 09:36:39 UTC
Decentralized identity, also known as self-sovereign identity (SSI), is an approach to digital identity management that gives individuals control over their personal information and how it is shared, accessed, and used. In a decentralized identity system, individuals create and manage their own digital identities without relying on centralized authorities like governments, banks, or tech companies. The concept of decentralized identity is built on principles like user control, privacy, security, and interoperability.
In a decentralized identity system, users create and store their digital identity on distributed ledger technology (DLT), such as a blockchain. This identity, represented as a unique identifier (DID, or Decentralized Identifier), can be linked to various verifiable credentials issued by trusted entities, like a driver's license, passport, or educational certificates. Users can then use these credentials to prove their identity, attributes, or qualifications without revealing unnecessary personal information.
Key features and benefits of decentralized identity include:
- User control: Decentralized identity puts users in control of their own digital identities, allowing them to decide what information to share, with whom, and for how long. This empowers users and reduces reliance on centralized identity providers.
- Privacy: Decentralized identity systems are designed to minimize the disclosure of personal information, enabling users to share only the necessary data for a specific transaction or interaction. This approach helps protect user privacy and reduces the risk of identity theft and data breaches.
- Security: Decentralized identity systems leverage cryptographic techniques and distributed ledger technologies, such as blockchain, to ensure the security and integrity of identity data. This makes it difficult for attackers to compromise or manipulate the system.
- Interoperability: Decentralized identity systems are designed to be interoperable, allowing users to use their digital identities across different platforms, services, and jurisdictions seamlessly.
- Inclusive: Decentralized identity can potentially bring digital identity services to people who lack access to traditional identity systems, such as those without government-issued IDs or those living in remote areas.
- Reduced reliance on intermediaries: By eliminating the need for centralized identity providers, decentralized identity systems can reduce costs, streamline processes, and lower the barriers to entry for various services.
Decentralized identity has the potential to transform the way people interact with online services, improving privacy, security, and user control. Various projects and organizations, such as the Decentralized Identity Foundation (DIF), the W3C's Decentralized Identifiers (DIDs) working group, and the Sovrin Foundation, are actively working on developing standards, protocols, and infrastructure to enable the widespread adoption of decentralized identity.