Decentralized identity

Decentralized identity, also referred to as self-sovereign identity, is an open-standards based identity framework that uses digital identifiers and verifiable credentials that are self-owned, independent, and enable trusted data exchange. It aims to protect privacy and secure online interactions using blockchains, distributed ledger technology, and private/public key cryptography.

In the decentralized identity approach, verifiable credentials are identity claims, or attestations, like proof of a workplace or student ID, official memberships, or other information from any trusted issuer. People access and control their verifiable credentials using a secure, encrypted digital wallet stored locally on a smart device.

Any business or organization can issue verifiable credentials, as well as revoke them or change status when they expire.  The early adopters of verifiable credentials for enhanced security, streamlined workflows, and reduced risk are organizations like a government, institution, licensing agency, workplace, or bank, on behalf of their citizens, employees, students, or customers.

A digital ID, or digital identity, is a digitized version of your personal information, such as a digital version of driver’s license data or vaccine card that is stored on your phone. Organizations, apps, and services may need to verify your digital identity details for a variety of reasons, such as employee onboarding, secure access to resources, or transactions requiring identity proofing or age verification.