Decentralized Identity

3 min readSep 19, 2020

It’s worth exploring the Decentralized Identity(DID) technique in the context of understanding how it will affect an existing enterprise architecture / technology stack.

Together we’re building a new identity ecosystem

What is a decentralized identity model?

In the web world, the technology paradigm has experienced accelerated evolution towards decentralization. While protocols such as HTTP and architectural patterns such as microservices or data mesh enable decentralized implementations, identity management remains centralized. The emergence of distributed ledger technology (DLT), however, provides the opportunity to enable the concept of decentralized identity.

In a decentralized identity system, entities — that is, discrete identifiable units such as people, organizations and things — are free to use any shared root of trust. In contrast, conventional identity management systems are based on centralized authorities and registries such as corporate directory services, certificate authorities or domain name registries.

Decentralized identity can replace identifiers, such as usernames, with IDs that are self-owned, independent, and use blockchain and distributed ledger technology to protect privacy and secure transactions.

Why do we need a decentralized identity model?

Today we use our digital identity at work, at home, and across every app, service, and device we engage with. It’s made up of everything we say, do, and experience in our lives — purchasing tickets for an event, checking into a hotel, or even ordering lunch. Currently, our identity and all our digital interactions are owned and controlled by other parties, some of whom we aren’t even aware of.

Users have to grant consent to numerous apps and devices, which warrants a high degree of vigilance of tracking who has access to what information. On the enterprise front, collaboration with consumers and partners requires high-touch orchestration to securely exchange data in a way that maintains privacy and security for all involved.

So there is a belief / thought process to set up a standards-based Decentralized Identity system can unlock a new set of experiences that empowers users and organizations to have greater control over their data — and deliver a higher degree of trust and security for apps, devices, and service providers.

Architecture And Terminologies

Please refer the details from W3.org

A DID based on the IPID DID Method, which uses the IPFS distributed storage and network.

Benefits

For Everyone → It opens up avenues in the context of everyone having the right to own their digital identity, one that securely and privately stores all personal data. This ID must seamlessly integrate into daily life and give complete control over data access and use.

For Organizations → Engage with less risk, use electronic claim verification, and improve transparency and auditability.

For Developers → Design user-centric apps and services and build true serverless apps that store data with users.