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What is a decentralized identifier (DID)?

2025-07-29 09:55:14
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Understand the decentralized identifier (DID)

A decentralized identifier (DID) is a unique identifier that can be issued by a decentralized platform. This identifier serves as proof of ownership of the digital identity. Unlike traditional identifiers that require a centralized registry, DID is a universally unique identifier (UUID) that can be cryptographically verified. They can be used to identify individuals, organizations, abstract entities, data models, and Internet of Things (IoT) devices.

Purpose of DID

The main purpose of DID is to return identity control to Internet users. It allows them to generate unique identifiers using systems they trust. By authenticating these identifiers using cryptographic proof such as digital signatures, individuals and organizations can benefit from data exchanges that leverage blockchain distributed ledger technology (DLT).

How DID works

In the DID framework, users can store multiple recognized identifiers in digital wallets, such as government-issued certificates, education and tax certificates, and other personally identifiable information (PII). A blockchain-based distributed ledger does not rely on a central authority to manage users \'identities, but instead serves as the source of all identifiers stored in wallets. Identifying information is not stored on the ledger, but in the wallet managed by the user. It enables people to share different parts of their identity with various services based on their needs.

Benefits of DID

Unlike centralized frameworks, users can only provide the information they need to any entity (website, application, etc.). These entities can be verified through blockchain-based ledger verification. For example, if you try to sign up for a new online service and it requires you to prove that you are 18 years old or older, using a decentralized framework, you may be able to control what information is shared from your digital wallet with the online service. You can present proof that you are 18 years old or older without revealing your actual date of birth.

DID Framework

The core DID draft originally released by w3c clarified that the decentralized identifier is a simple text string. It consists of three parts: a DID URI scheme identifier stored on the chain, a DID method identifier, and an identifier specific to the DID method. DID is part of the global key-value database, where certain blockchains host DID documents (e.g., public keys, service endpoints, and authentication protocols). The DID serves as a key, and the DID document serves as a value to describe a particular data model to guide cryptographic verifiable interactions with identified entities in the decentralized ecosystem.

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