1. What is a decentralized identity?
A decentralized identity is a self-owned, independent identity that enables trusted data exchange.
Decentralized identity is an emerging Web3 concept based on a trust framework for identity management. Such decentralized identity management includes an approach to identity and access administration that allows people to generate, manage and control their personally identifiable information (PII) without a centralized third party like a registry, identity provider or certification authority.
Considered to be private and sensitive data, PII refers to the body of information about specific individuals that directly or indirectly identifies them. Usually, it combines name, age, address, biometrics, citizenship, employment, credit card accounts, credit history, et cetera. In addition to PII, information that forms a decentralized digital identity includes data from online electronic devices, such as usernames and passwords, search history, buying history and others.
With a decentralized identity, users can control their own PII and provide only the information that is required to be verified. Decentralized identity management supports an identity trust framework where users, organizations and things interact with each other transparently and securely.
2. Why does decentralized identity matter?
A decentralized identity aims to give people official proof of identity and complete ownership and control over their identities in a secure and user-friendly way.
A verifiable proof of existence is often needed for citizens to access essential services like healthcare, banking and education. Unfortunately, according to Worldbank data, 1 billion people on our planet still do not have an official proof of identity. A considerable part of the population is in a precarious position, unable to vote, open a bank account, own property or find a job. The inability to obtain identification documents limits people's freedom.
What’s more, traditional centralized identification systems are insecure, fragmented and exclusionary. Centralized identity databases are at risk as they often become prime targets for hackers. From time to time, we hear about hacks and attacks on centralized identity solutions in which thousands and millions of customer records are being stolen from major retailers.
Continue reading: https://cointelegraph.com/explained/what-is-decentralized-identity-in-blockchain
A decentralized identity is a self-owned, independent identity that enables trusted data exchange.
Decentralized identity is an emerging Web3 concept based on a trust framework for identity management. Such decentralized identity management includes an approach to identity and access administration that allows people to generate, manage and control their personally identifiable information (PII) without a centralized third party like a registry, identity provider or certification authority.
Considered to be private and sensitive data, PII refers to the body of information about specific individuals that directly or indirectly identifies them. Usually, it combines name, age, address, biometrics, citizenship, employment, credit card accounts, credit history, et cetera. In addition to PII, information that forms a decentralized digital identity includes data from online electronic devices, such as usernames and passwords, search history, buying history and others.
With a decentralized identity, users can control their own PII and provide only the information that is required to be verified. Decentralized identity management supports an identity trust framework where users, organizations and things interact with each other transparently and securely.
2. Why does decentralized identity matter?
A decentralized identity aims to give people official proof of identity and complete ownership and control over their identities in a secure and user-friendly way.
A verifiable proof of existence is often needed for citizens to access essential services like healthcare, banking and education. Unfortunately, according to Worldbank data, 1 billion people on our planet still do not have an official proof of identity. A considerable part of the population is in a precarious position, unable to vote, open a bank account, own property or find a job. The inability to obtain identification documents limits people's freedom.
What’s more, traditional centralized identification systems are insecure, fragmented and exclusionary. Centralized identity databases are at risk as they often become prime targets for hackers. From time to time, we hear about hacks and attacks on centralized identity solutions in which thousands and millions of customer records are being stolen from major retailers.
Continue reading: https://cointelegraph.com/explained/what-is-decentralized-identity-in-blockchain
