15 Jan 2025

DID: A Decentralized Identifier

DID: A Decentralized Identifier

The World Wide Web Consortium (W3C) marked 2022 with a decisive push towards enhancing and integrating Decentralized Identification (DID) technology. The adoption of these decentralized identifiers equips companies and individuals with the means to manage their personal information independently.

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Notwithstanding some dissenting voices within the consortium, including Mozilla and Google, there was no backtrack on the decision. Instead, a task force of experts from the W3C took the initiative to develop a standard. This standard would facilitate the creation of DIDs that could harmonize with a variety of blockchains, applications, and websites.

So, what exactly is a Decentralized Identifier (DID)?

A DID is essentially a persistent identifier, a unique reference that in a decentralized way distinguishes a person, a company, specific data, and physical objects from each other.

The creation of a DID relies on cryptography, which concurrently ensures secure storage, confidentiality, authenticity, and the verifiability of the information. DIDs are logged into a distributed ledger, which could be a blockchain, a decentralized file system, or other peer-to-peer networks. 

This identification technology pulls the control over personal information from the clutches of centralized databases, placing it directly into the user's hands. A DID also presents a way to combat digital identity theft and the falsification of accounts.

A decentralized identifier is used to obtain relevant information about the entity to which it is linked. In this arrangement, the entity that owns the DID has absolute control over their personal data, deciding how and when it can be utilized and transferred. 

The use of a decentralized identifier can potentially permeate virtually all online interaction scenarios.

How does a DID function?

When creating a Decentralized Identifier (DID), various cryptographic algorithms are utilized. This depends largely on the type of distributed ledger where these identifiers are being implemented. For instance, in the Bitcoin blockchain, DID addresses are produced through a command set referred to as secp256k1.

DID (Decentralized Identifier) is programmed using a specific set of methods and protocols defined in its specification. 

An example of a DID. Source — www.w3.org

An example of a DID. Source — www.w3.org

The method refers to a distinctive process used to create and update each individual DID. Different blockchains, in fact, have their unique ways of formulating DIDs.

The key elements of the DID architecture are the document and the controller.

The document includes information about the DID subject. This could contain public cryptographic keys, digital signatures, timestamps, and other necessary data for authentication. With this component, you can ensure the genuineness of the information and agree with the verification authority.

The controller is the entity that introduces changes to the document and supervises the data. It could be an individual user, a corporation, or even a device. The subject of a DID can also act as the controller. 

Infographic on DID architecture. Source — www.w3.org

Infographic on DID architecture. Source — www.w3.org

What are the issues that a DID cannot resolve?

While a DID is a promising technology emerging from the realm of blockchain and cryptography, it is not a panacea. This technology provides users control over their personal data and digital identification, but it fails to deliver a decentralized solution for storing login credentials (username and password).

Despite offering a drastically different verification model, a DID is incapable of addressing the issue of global surveillance. Big Brother continues to monitor and control us, regardless of how we identify ourselves. Its analytical capabilities enable the tracing of our digital footsteps in any situation when required.

The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.

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