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Decentralized Identifiers (DIDs)

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Definition

Decentralized Identifiers (DIDs) are a new type of identifier that enables verifiable, self-sovereign digital identity. DIDs are designed to be independent of any centralized registry, identity provider, or certificate authority, giving users complete control over their digital identity and personal data.

Core Properties

Self-Sovereign Identity

  • User control: Users maintain complete control over their identity
  • Decentralized: No central authority controls the identity
  • Verifiable: Identity claims can be cryptographically verified
  • Portable: Identity can be used across different platforms
  • Privacy-preserving: Users control what information to share

Key Mechanisms

  • DID documents: Self-describing identity documents
  • Cryptographic keys: Public-private key pairs for authentication
  • Verifiable credentials: Cryptographically signed identity claims
  • Selective disclosure: Sharing only necessary information
  • Revocation: Ability to revoke identity claims

Beneficial Potentials

Privacy and User Control

  • Data sovereignty: Users control their own data
  • Selective disclosure: Sharing only necessary information
  • Privacy preservation: Protecting personal information
  • Consent management: Users control data sharing
  • Identity portability: Using identity across platforms

Security and Trust

  • Cryptographic security: Strong cryptographic guarantees
  • Tamper-proof: Identity documents cannot be tampered with
  • Verifiable: Identity claims can be verified
  • Non-repudiation: Cryptographic proof of identity
  • Trust networks: Building trust without central authorities

New Applications and Use Cases

  • Digital identity: Self-sovereign digital identity
  • Access control: Secure access to services
  • KYC/AML: Know Your Customer and Anti-Money Laundering
  • Credential verification: Verifying educational and professional credentials
  • Voting systems: Secure and verifiable voting

Detrimental Potentials

Technical and Implementation Challenges

  • Complexity: More complex than traditional identity systems
  • User experience: Difficult for non-technical users
  • Integration: Difficult to integrate with existing systems
  • Standards: Lack of universal standards
  • Adoption barriers: High barriers to adoption

Security and Privacy Risks

  • Key management: Managing cryptographic keys
  • Identity theft: Risks of identity theft and fraud
  • Sybil attacks: Creating fake identities
  • Privacy leaks: Accidental disclosure of personal information
  • Revocation challenges: Difficult to revoke compromised identities

Economic and Social Challenges

  • Economic incentives: Lack of economic incentives for adoption
  • Network effects: Need for widespread adoption
  • Regulatory uncertainty: Unclear regulatory status
  • Social acceptance: Resistance to new identity systems
  • Digital divide: Excluding users without technical knowledge

Technical Implementation

DID Structure

did:method:identifier

Key Components

  • DID method: Specific implementation of DIDs
  • DID document: Self-describing identity document
  • Public keys: Cryptographic keys for authentication
  • Service endpoints: Services associated with the identity
  • Verifiable credentials: Cryptographically signed claims

Use Cases and Applications

Digital Identity and Authentication

  • Login systems: Secure login without passwords
  • Access control: Controlling access to services
  • Multi-factor authentication: Enhanced security
  • Single sign-on: Using identity across platforms
  • Identity verification: Verifying user identity

Credential Management

  • Educational credentials: Verifying educational achievements
  • Professional credentials: Verifying professional qualifications
  • Certifications: Verifying certifications and licenses
  • Memberships: Verifying membership in organizations
  • Achievements: Verifying personal achievements

Financial Services

  • KYC/AML: Know Your Customer and Anti-Money Laundering
  • Banking: Secure banking services
  • Insurance: Identity verification for insurance
  • Credit scoring: Alternative credit scoring
  • Financial inclusion: Access to financial services

Major Protocols and Examples

Sovrin

  • Self-sovereign identity: Pioneering self-sovereign identity
  • Verifiable credentials: Cryptographically signed credentials
  • Privacy preservation: Protecting user privacy
  • Integration: Working with multiple platforms
  • Innovation: Advanced identity features

Hyperledger Indy

  • Enterprise identity: Enterprise-focused identity solutions
  • Verifiable credentials: Cryptographically signed credentials
  • Privacy preservation: Protecting user privacy
  • Integration: Working with enterprise systems
  • Innovation: Enterprise identity solutions

Microsoft ION

  • Decentralized identity: Microsoft’s decentralized identity solution
  • Bitcoin integration: Built on Bitcoin blockchain
  • Privacy preservation: Protecting user privacy
  • Integration: Working with Microsoft services
  • Innovation: Bitcoin-based identity solutions

Integration with Other Primitives

smart contracts

  • Identity verification: Verifying identity in smart contracts
  • Access control: Controlling access to smart contracts
  • Automation: Automated identity verification
  • Integration: Seamless interaction with smart contracts

Decentralized Autonomous Organizations (DAOs)

  • Governance: Identity verification for governance
  • Membership: Verifying membership in DAOs
  • Voting: Secure and verifiable voting
  • Participation: Verifying participation in DAO activities

Composability

  • Cross-platform integration: Working with multiple platforms
  • Modular design: Building complex systems from components
  • Interoperability: Seamless interaction between protocols
  • Layered architecture: Multiple abstraction levels

Security Considerations

Cryptographic Security

  • Key management: Secure key generation and storage
  • Key rotation: Regular key rotation for security
  • Key recovery: Recovering lost keys
  • Cryptographic algorithms: Using secure algorithms
  • Key escrow: Secure key escrow mechanisms

Privacy Protection

  • Data minimization: Collecting only necessary data
  • Selective disclosure: Sharing only necessary information
  • Consent management: User control over data sharing
  • Data retention: Limiting data retention
  • Right to be forgotten: Ability to delete data

References

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