What is a Decentralized Identity?
A decentralized identity (DID) is a new approach to identity verification that shifts control from centralized authorities, such as governments and corporations, to individuals. Unlike traditional identity systems that rely on a central repository of personal information, decentralized identities utilize blockchain technology to store and manage identity credentials in a secure and private manner.
The core concept of decentralized identity revolves around self-sovereignty, where users have full ownership and management of their identity data. Individuals can create and control their own unique identifiers without needing a central issuer. This gives users the ability to share only specific pieces of information when needed, enhancing privacy and reducing the risk of identity theft.
In enterprise blockchain solutions, decentralized identities can streamline processes like onboarding, credential verification, and access control. Organizations can verify the authenticity of identities without storing sensitive information, thus minimizing exposure to security breaches. Overall, decentralized identities represent a shift toward more secure, user-centric, and efficient identity management systems in the digital age.