By Denis Mwirigi
Identity management stands as a critical issue in our increasingly digital world. This ranges from simple social media logins to accessing personal financial services as digital identities get more intertwined in every aspect of our daily lives. A challenge arises with traditional identity systems that rely on centralized entities controlling them, for instance corporations, third-party service providers and governments.
Cases of identity theft, data breaches and unauthorized access are common with centralized identity systems considering the vast amount of personal information stored in them. Databases are attractive targets for hackers and their compromisation has devastating effects which includes,financial losses, exposure of sensitive information and loss of trust among the associated users.
Decentralized Identifiers
- DIDs empower users and offer control over their digital identities while reducing dependency on centralized systems.
Decentralized identifiers (DIDs) present a promising solution to the challenges experienced while dealing with traditional systems. DIDs leverage the blockchain technology and creates a decentralized approach of managing and controlling identity data. As a result, users are able to own and control their digital identity without the need of centralized databases in a single entity. Since a self-sovereign approach is used in DIDs, there is a lower risk of mass data breaches. They are also interoperable and therefore can be used across different platforms or services without compromising one’s privacy and security.
How do DIDs enhance Security and Privacy?
- DIDs offer enhanced security and privacy as traditional Identity systems are vulnerable to breaches.
Security and privacy are the major advantages of using DIDs over traditional identity systems. DIDs are decentralized with no single point of failure and thus making it extremely hard for malicious actors to access and compromise them. In addition, they employ cryptographic methods of verifying identities which gives the rightful owner exclusive mandate of accessing and managing their data.
Traditional identity systems require users to share their personal information more than they should in order to access their services. However, with DIDs users can disclose personal information selectively by sharing what is required for a specific interaction. This ensures optimum privacy and minimizes the exposure of one’s data while reducing the risks of misuse by malicious actors.
The role of Blockchain Technology in DIDs
- Blockchain technology backs DIDs providing transparency and immutability in identity management.
At the heart of DIDs, is the blockchain technology that provides the infrastructure to make decentralization and management of identities possible. Transparency, immutability and decentralization are the inherent properties of blockchains that perfectly align with the goals of DIDs. Once a DID is created, a record of it is created on a blockchain which ensures that it will always be both verifiable and secure.
The use of blockchain technology ensures that the recorded DID is tamper-proof. This means that once a DID record is created, no one can alter or delete it without a consensus of the associated blockchain network. A secure and immutable system instills trust among its users and guarantees them privacy and integrity of data at all times.
Real World Applications of DIDs
There exists several potential applications of DIDs in the modern world. Financial systems can use DIDs to streamline their Know Your Customer (KYC) processes to reduce the need for repetitive identity verification besides enhancing security. In the healthcare sector, DIDs allow patients to gain better control of their medical records and share information with healthcare institutions while maintaining their privacy.
Social Media platforms can employ DIDs to enhance user privacy. Users can verify their identities without having to expose personal information to the social media platform itself. The move would help curb the problem of misinformation and fake accounts thus promoting a more real and safer online environment for users.
The Future of Digital Identity; What should we expect?
The limitations of traditional systems are becoming more apparent with the ongoing digital revolution. DIDs present a user-centric approach in a decentralized manner, offering an alternative that guarantees solutions to the challenges of privacy and security of personal data in the modern world. By leveraging blockchain technology, they come out as a safer and more trustworthy mechanism of managing digital identities.
With several institutions and governments exploring the potential of DIDs, we may see transitions to DIDs underway sooner than we expect. They could become the standard digital management system, and thus usher in a new era of privacy and security within the digital age. As blockchain technology and cryptocurrency becomes more understood and accepted by the average person, DIDs gain more potential towards mass adoption in contemporary society.
