Decentralized identity is a new term that can be useful and attractive to many users. These systems work completely differently from traditional authentication systems and bring convenience to users. The independent identity system allows users to store, manage and control their personal and sensitive data and information. The emergence of these systems is a turning point for active users in the field of crypto because it helps to increase the use of blockchain and its security. But what is decentralized identity and what are the advantages and features of this system? In this article, we will fully review the autonomous identity system. Therefore, we invite you to continue with Valex exchange.
What is decentralized identity?
Decentralized identity is an emerging concept in Web3 It provides the necessary conditions for secure information exchange. In fact, decentralized-identity is an independent identity that is used for identity management. Independent identity allows individuals to easily generate, manage, or control their personally identifiable information without the need for an identity provider or certificate authority.
Personal identification information (PII) is the private and sensitive data of individuals that helps to directly or indirectly identify individuals. This information may include name, age, address, biometrics, occupation, credit card account, history, etc. Of course, decentralized digital identity includes more than these and is not limited to these. The data of online electronic devices such as usernames, passwords, search history, purchase history and other such information are included in this information.
With decentralized identity, you can control your PII and provide only the information needed to verify your identity. In fact, with the help of this system, you can manage your information and prevent confidential information from being provided. Identity management is decentralized in a secure framework based on trust. Also, with the help of this system, users and organizations can interact with each other transparently and safely in Web 3.
What is the importance of decentralized identity?
Decentralized identity is a new and integrated system that is responsible for increasing the security of users’ personal information. This system is designed to allow people to have full access to their personal and sensitive information and to control and manage it in a safe way. Authentication is required to access the services of online platforms, and this puts your personal information at risk.
Many believe that the centralized identity system is considered a serious threat to people because it does not have the necessary security to keep personal information. Therefore, when you use this system, be sure to keep in mind that the information you give to the system may be at risk. In addition, these systems also have problems in registering the ownership of information, and people cannot have precise control over their information. In such a situation, using an independent identity system will be the best solution. Decentralized digital identity offers different solutions to users so that they can prove their identity without compromising their information.
In fact, with the help of these systems, users only need a device connected to the Internet and do not need to do any special or complicated work. In addition, in autonomous identity systems of blockchain technology and distributed ledger technology, they can easily recognize or verify a true identity. Using a decentralized identity process on the blockchain makes it easier for users, organizations, developers, and Internet of Things (IoT) management systems to manage, store, and securely access personal information.
How does decentralized identity work?
As we said before, decentralized identity is a new and emerging phenomenon that has attracted the attention of users and leading organizations in the world. Organizations from this independent system for Increase user trust They use and try to show themselves as a superpower to the people. Many large companies such as Microsoft, IBM, Secure Key and startups such as Evernym also use the autonomous identity system. This system works independently and is not affiliated with any organization or body.
Using the independent identity system, users can keep their personal information safe and expose only the essentials. The autonomous identity organization has many subcategories and these factors work together to make this system work successfully. In general, the following organizations work to standardize and shape independent identity:
- Decentralized Identity Foundation (DIF): This system is considered as the main operating center of an independent system. In fact, all discussions, developments and management are issued through this foundation to create an independent ecosystem.
- World Wide Web Consortium (W3C): This service provides open standards since the early 2000s and works on browser development and interoperability with various projects.
- Internet Engineering Task Force (IETF): This organization is responsible for standardizing the main Internet technologies such as Internet protocols.
- Hyperledger: Known as the Linux Foundation Community, this network is responsible for developing frameworks, tools, and libraries for deploying decentralized ledgers and blockchains.
Advantages of decentralized identity
Independent identity system is a new and unique technology that has many advantages. Taking advantage of these benefits has made this system more popular among users. In general, the advantages of decentralized identity are:
- Ability to control and manage information to identify people
- The ability to verify decentralized IDs and certificates without the need for approval from authorities or third-party services
- Help protect people’s privacy
- Using blockchain technology and increasing trust between parties
- Ability to save and share personal data
Decentralized identity use cases
Decentralized digital identity is used for various purposes due to its advantages. In this section, we introduce the most important uses of decentralized identity systems.
Global logins
Most of the login forms work based on a fixed password, and the independent identity system can be a suitable alternative for these logins. For example, users can access the desired online space using an Ethereum wallet or a specific NFT instead of a password. In fact, using this service in logins provides the opportunity for users to easily access the online service and perform the services they need without memorizing long passwords.
KYC authentication
Another use case of independent identity system is multi-step authentication or KYC. Nowadays, most online platforms have made KYC process mandatory for providing services. This process has simplified things for users. Because they no longer need to provide documents such as certificates, passports, etc. to access online services. Instead, using a decentralized identity system allows users to reduce costs related to cost management and avoid forging documents to access services.
Use in voting systems
Voting systems are very popular with users and are used in social media and online communities. In these systems, there is a possibility of fraud and manipulation, and this makes voting unfair. To avoid this problem, an independent identity system can be used.
These systems force users to use their real identity to vote, which makes the voting system more integrated and reduces fraud. In fact, users are required to confirm their identity and this prevents the presence of robots in the voting system. Finally, you will see an integrated system for voting.
Protection against Siebel attacks
Decentralized identity system is also used to prevent Sybil attacks. Siebel attacks are attacks in which some fraudsters and profiteers try to deceive the system and infiltrate it. Most platforms are vulnerable to Siebel attacks, which makes the use of independent identity more prominent. The use of independent systems reduces the risk of attacks by profiteers, and only people who prove to be real people can enter the network.
What platforms use decentralized identity?
There are various projects that act as decentralized identity systems. In this section, we introduce a number of platforms that work using the Ethereum network as an independent identity system.
- Ethereum Half Service (ENS): This awesome system uses decentralized naming IDs, Ethereum wallet addresses, content hashes, and cloud data.
- SpruceID System: This project is also decentralized and allows users to control or manage their digital identity using Ethereum and ENS accounts instead of relying on a third party.
- BrightID Network: This network has a decentralized social identity and works as an open source. The BrightID network was actually set up with this goal to correct or verify the identity of users through the creation, analysis, and graph analysis.
- Proof of Humanity (PoH) system: The PoH network is a social identity verification system built on the Ethereum platform and works in a decentralized manner.
The future of decentralized identity
Decentralized identity is an emerging system that is still in its infancy. The many advantages of this technology allow users to protect their personal and sensitive information. Decentralized identities have many uses, enabling the verification of decentralized identities and certificates without the need for approval from third-party authorities or services. In this article, we examined what the decentralized identity system is and how it works. Due to the application and advantages of decentralized identities, it is expected that this system will face significant development and be adopted by many platforms in the coming years.
What is Decentralized Identity Writing? The use of decentralized identity in the blockchain first appeared on the Wallex blog. appeared.
