Decentralized identity, also known as self-sovereign identity, is a concept in decentralized technology that allows individuals to own and control their own digital identity without relying on centralized authorities such as governments or corporations.
With decentralized identity, users can create and manage their own identity on the blockchain, which is secured by cryptography and can be verified by anyone without the need for a third-party intermediary. This means that users can have more control over their personal information and privacy, and can choose which information to share and with whom.
Decentralized identity can be used in a variety of applications, such as online authentication, digital signatures, and access control. For example, a user could use their decentralized identity to log in to a website, sign a document, or grant access to certain data.
One example of a decentralized identity project is Microsoft’s Decentralized Identity Foundation, which aims to create an open standard for decentralized identity that can be used across different platforms and applications.
In contrast to Web2, where users have to rely on centralized authorities to manage their identity and personal information, Web3 and decentralized technology offer a more secure and decentralized approach to identity management.