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Diving into Decentralized Identity: Securing the Digital Self

  • Decentralized identity (DID) allows users to control and manage their own data and credentials, providing a democratic approach to internet engagement.
  • Decentralization of personally identifiable information (PII) eliminates the need for authentication between different organizations, saving time and effort.
  • Blockchain technology enables verification of decentralized credentials, such as a driver’s license, without involving the issuer, ensuring trust and transparency.
  • Decentralized identity offers benefits such as ease of access, ownership and control of data, seamless authentication, enhanced data security, and increased trust between organizations and users. It is also recorded on public and immutable ledgers like Ethereum.
What is Decentralized Identity?

Decentralized identity (DID) is an innovative approach that empowers internet users to actively engage in and take control of their personal data. It represents a paradigm shift where individuals possess the authority to manage the data and credentials that validate their identity. In essence, decentralized identity provides users with a democratic framework to exercise autonomy over their data and its usage.

The foundation of decentralized identity lies in personally identifiable information (PII), which encompasses the data elements that uniquely identify individuals. By decentralizing this information, the need for time-consuming authentication processes between multiple organizations is eliminated. This results in significant efficiency gains, as it streamlines interactions and transactions that rely on verifying user identities across various platforms and services.

To illustrate the benefits of decentralization, consider the example of a decentralized driver’s license. By leveraging blockchain technology, the authenticity of a driver’s license can be verified directly on the blockchain without the involvement of the issuing authority. The use of blockchain ensures trust and transparency in the verification process. Consequently, records pertaining to the issuer and the issuance date can be openly accessed and verified by anyone with internet connectivity and a computer.

How does Decentralized Identity Work?

Conventional identity management systems have heavily depended on centralized intermediaries responsible for issuing, retaining, and exerting control over individuals’ identifiers and attestations. Consequently, individuals lack authority over their identity-associated data, including the ability to determine which parties are granted access to their personally identifiable information (PII) and the extent of such access.

On the other hand, Decentralized Identity (DID) is a unique address on Web3 that an individual or entity can directly own and control. This address serves as a reference point to locate associated DID documents that store essential information linked to the respective DID. These DID documents hold relevant data necessary to facilitate various use cases, including but not limited to authentication, data encryption, communication, and more.

The DID documents play a crucial role in enabling the functionalities and applications built upon the decentralized identity framework. They serve as a repository of information associated with the DID, providing key details and attributes that are essential for establishing trust and verifying the identity of the entity.

Cryptographic proofs, such as digital signatures, form an integral part of the DID ecosystem. They serve as mechanisms for entities to demonstrate control and ownership over their DIDs and associated DID documents. Through cryptographic techniques, entities can generate digital signatures that serve as verifiable evidence of their control and authority over the identifiers.

These cryptographic proofs play a vital role in establishing trust and ensuring the integrity of decentralized identity systems. By utilizing digital signatures or other cryptographic methods, entities can cryptographically sign their DID documents, thus providing irrefutable evidence of their ownership and control over the associated identifiers. This enables seamless verification of the authenticity and validity of DIDs, enhancing security and reliability in decentralized identity transactions and interactions.

The use of cryptographic proofs within the DID framework contributes to the establishment of a trust ecosystem, as entities can rely on these cryptographic mechanisms to verify the legitimacy of DIDs and associated data in a decentralized manner without relying on centralized authorities or intermediaries. The decentralized nature of DIDs and their cryptographic proofs allows for greater autonomy, privacy, and control over identity information while minimizing the risk of fraudulent activities or unauthorized access.

Image source: Medium
Advantages of Decentralized Identity
Simplified Connectivity

With DID, users can easily access the internet without facing restrictions on logins. This means they don’t have to create multiple accounts or remember numerous usernames and passwords for different platforms.

Empowerment of Data Ownership

Decentralization eliminates the need for third-party control over user data. It empowers individuals to own and control their own data. Users can choose to share only the necessary information with organizations, and through the use of Zero-knowledge proofs, they can limit what is accessible on the public internet.

Frictionless Authentication

Forgetting usernames and passwords is a common issue in Web3, which can be challenging and frustrating. In contrast, DID provides a single identity that can be used across various platforms, eliminating the need for multiple usernames and passwords.

Constituents of Decentralized Identity

While there may not be a hard-and-fast rule as to what actually constitutes a Web3 DID, there are several key components that are at play that may lead users to construct a DID for themselves.

Decentralized Identifiers

Decentralized Identifiers are like online aliases that are stored on public and unchangeable ledgers, such as Ethereum. They exist independently and are not controlled by a single entity. It’s similar to how you may use different usernames or nicknames to represent yourself on the internet.

Externally-Owned Account (EOA)

An Externally-Owned Account, or EOA, is an Ethereum account that is controlled by a private key outside the Ethereum blockchain. Anyone can create an EOA, and it is commonly used by individuals to interact with the Ethereum network, like sending or receiving digital currency (ether) or engaging with smart contracts.

Name Services

Name services like Ethereum Name Service (ENS) is a decentralized system that functions like a domain name system (DNS) for various blockchains. It allows users to associate human-readable names with their wallet addresses, making it easier to identify and interact with others on the network while also injecting a degree of “personality” into their wallet account.

Verifiable credentials (VCs)

Verifiable Credentials (VCs) refer to authenticated statements where a third party digitally signs information about a decentralized identifier. These credentials can pertain to various attributes, such as a credit score or a master’s degree. The significant advantage of this technology lies in its ability to allow users to provide proof of these credentials without disclosing other sensitive details, such as their legal name or account balance. By default, these claims remain private and are only verified when requested. Additionally, certain VCs can be designed to have verifiability for specific time periods or the ability to be revoked by the entity that issued them.

Soulbound tokens (SBTs)

Soulbound Tokens (SBTs) like Bitget Wallet (Previously Bitget Wallet (Previously BitKeep))’s “B” Soulbound Token – Buddy (BSTB) are a unique form of verified claims where a public identifier asserts information about another decentralized public identifier. These claims often pertain to reputation-related attributes, such as a credit score. However, the key distinction is that the nature of the claim is permanent and publicly accessible. This attribute of SBTs simplifies the verification process, making them particularly valuable for granting voting privileges within governance protocol

The notable characteristic of SBTs is their immutability and visibility to the public. Once a claim is made and associated with a specific public identifier, it becomes a permanent record that can be readily proven by verifiers. This transparency is advantageous for establishing trust and accountability in various scenarios, particularly within decentralized governance systems.

Web3 Identity Wallet

A Web3 identity wallet is a technological tool, either in the form of a physical device or a software application, designed for the purpose of effectively managing and controlling multiple Web3 profiles, decentralized identifiers (DIDs), and the corresponding identity claims associated with them.

These identity wallets serve as a centralized hub or repository, enabling users to securely store and interact with their various digital identities in the Web3 ecosystem. By leveraging cryptographic mechanisms and advanced security protocols, these wallets offer a robust and trusted environment for managing DIDS and their associated claims.

The primary function of a Web3 identity wallet is to provide users with convenient and efficient access to their different Web3 profiles and associated decentralized identifiers. Through the wallet, users can seamlessly switch between their various identities, interact with different decentralized applications (DApps), and manage the corresponding identity claims linked to each profile.

In essence, the Web3 identity wallet acts as a personal vault, safeguarding and facilitating the management of a user’s Web3 identities and their corresponding claims. These claims may include various types of verifiable information, such as reputation scores, academic achievements, professional certifications, or any other attributes that establish the credibility and trustworthiness of an individual in the Web3 ecosystem.

In the future, Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) will be integrating DID support for users, enabling a seamless way to introduce personality, identity, and multi-faceted access for all that Web3 has to offer.


The rise of Web3 and the Metaverse has opened doors to reshape our perspective on personal data. The introduction of DIDS offers web users a transformative opportunity to attain unprecedented visibility and control over their own data. These decentralized identities hold tremendous potential, not only as a means to validate online profiles and professional credentials, but also as a catalyst for transforming the prevailing norms in data management.

By embracing decentralized DIDs, individuals can reclaim ownership of their personal information, forging a path toward a more secure, privacy-centric, and user-centric digital landscape. This shift represents a compelling alternative to the existing standard, fostering a future where individuals can navigate the online realm with confidence, autonomy, and trust. The era of decentralized identities has arrived, bringing with it the promise of a more empowered and resilient digital society.

Follow Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) to stay up-to-date with all of our latest events, findings, and promotions, and let Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) be your premier gateway into the Web3 space.

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