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Understanding decentralised identity systems

Understanding decentralised identity systems

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Jonny Fry
Mar 05, 2025
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Digital Bytes
Digital Bytes
Understanding decentralised identity systems
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The aim of decentralised identity systems is to transform digital identity (DID) creation, storage and sharing. DIDs use distributed networks instead of central authorities, taking data from social media platforms, email providers and government databases. Blockchain technology and cryptographic keys enable self-sovereign identification so allowing the user of a DID to verify themselves without disclosing sensitive data. DIDs are based on self-sovereignty where users decide what information to reveal and with whom; DIDs reduce data breaches by decentralising data storage and employing distributed ledgers. These solutions also prioritise privacy by design, sharing sensitive data only with user agreement to comply with GDPR.

Companies offering digital identity solutions

Source: Google

A decentralised identification system operates using key components to ensure secure and private identity verification. Furthermore, by leveraging blockchain technology, this system eliminates the need for ce…

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