Decentralized identity involves the use of blockchain technology and is a concept that aims to give individuals more control over their personal data and digital identities. The primary mechanism used in decentralized identity is a digital wallet, which is a secure and portable container that stores personal information.
In a decentralized identity system, the user owns and controls their digital identity instead of it being managed by a centralized authority, such as a government or corporation. The user’s digital identity is stored on the blockchain, a decentralized and secure database.
When a user interacts with another party, they can choose to share only the specific pieces of information they want to disclose. The user gives permission for the other party to access their data, and the information is verified through the blockchain. This way, the user maintains control over their identity, and personal information is not shared without their consent.
Decentralized identity also eliminates the need for users to create multiple accounts and remember multiple passwords for different applications and services. Users can use their digital wallet to authenticate themselves and access their data and applications across various services and platforms.
Overall, decentralized identity provides a more secure, private, and user-centric approach to managing digital identities, giving individuals more control over their data and privacy.
