Popular Science: What is a decentralized digital identity

In the early days of Internet development, the scale of users was small, and they were mainly used for sharing various information. However, as the scale of users expanded, the role of the Internet became more and more important, and the lack of the basic content of the identity system led to various Internet violence and unscrupulous human flesh incidents . From this, identity systems gradually began to be built, connecting people’s identities on the Internet with reality.

With the continuous development of the Internet, the value of users’ personal data has been continuously discovered, resulting in the emergence of many Internet giants, such as Google, Facebook, etc., which have become Internet giants through advertising revenue.

It can be seen that the identity system and personal data are of great value in the Internet age, but these values ​​do not belong to the users themselves, but are controlled by large companies, and there is a problem of data privacy leakage . Today, data privacy breaches that affect hundreds of millions or even billions of people abound. Here are a few major data breaches that have occurred in the past 10 years:

  • Adobe: October 2013 and October 2019, impact: 153 million user records;
  • LinkedIn: 2012 (and 2016), impact: 165 million user accounts;
  • MySpace: 2013; Impact: 360 million user accounts;
  • Yahoo: 2013-14; Impact: 3 billion user accounts;
  • eBay: 2014; Impact: 145 million users;
  • Adult Friend Finder: October 2016; Impact: 412.2 million accounts;
  • Facebook: April 2021; Impact: 500 million users.

At present, data privacy-related issues have become a very big market issue. Based on this situation, in the era of web 3.0, it has become a trend to attribute personal identity content to users themselves, so that users have ownership of their own identity data.

What is DiD

DID (Decentralized Identifier, decentralized identity system), as a new identity, is derived and derived from traditional centralized identities, and refers to disintermediation , the ownership and control of their own digital identities fully owned by individuals or organizations As well as management rights , this part of the rights are entirely attributed to the users themselves.

Popular Science: What is a decentralized digital identity

advantage

1. The ownership of
data (such as transaction records, owned NFTs and other information) is completely controlled by the owner himself, and does not require any centralized third party to participate in it. Any information about your identity is completely in your own hands, No one or company can access this information without your authorization.

2. In the era of data integration
web2.0, users need different account numbers and passwords to log in to different platforms. In the era of web 3.0, users can authorize login to different platforms and websites through a single wallet . The more users operate, the more data they have, and the more data they have, the more they can better reflect their own reputation system, risk appetite, and loan repayment ability and other character traits.

currently existing problems:

1. Privacy and Transparency
Although the data is their own, due to the openness of the blockchain, some people will specifically track the KOL’s wallet address and follow up on the KOL’s every step of the operation. For most people, letting others know about their account assets and various operations can even correspond to their offline counterparts. For individuals, in extreme cases, their own security may also have problems, and sometimes they have to face Public opinion pressure and moral condemnation . Of course, the newly registered account can partially (as long as it is a big money move, it will be followed) to avoid this situation.

2. Huge amount of data
Due to the immutability and permanence of the blockchain, the user’s data will be very large , and various information will be mixed together, and it will be very difficult to filter effective information. For other companies that want to use user data for further effective use, the difficulty will increase a lot .

3. Regulatory issues
With the emergence of new technologies, there will generally be problems that various laws and regulations cannot keep up with them in a short period of time.

The above are some of the advantages and disadvantages of DID summarized. If you have other opinions, you are welcome to add them.

digital identity based applications

As we can see from the above, as a kind of underlying infrastructure , the more value of DID does not actually come from itself, but the value generated based on a series of data generated by it . The following is a brief inventory of some related applications currently on the market.

For everyone, the most familiar wallet
should be the wallet, which is used for various transactions and authorized login of websites. Although it is not as profitable as a trading platform at present, it is an indispensable part as the entrance of web3.0. Represents wallets that everyone is familiar with, such as Metamask, imtoken, TokenPocket, etc.

Voucher
users get rewards (nft or Token) by completing on-chain tasks issued by the platform. Such representatives include RabbitHole, Project Galaxy, POAP, etc.

Reputation System
Users create identities and communicate with each other in a specific ecosystem, increasing their reputation through their own on-chain behavior and data. It is better to understand centralized Twitter, such representatives include the content creation platform mirror and Monaco, which has been hot for a few days at the end of 21.

In addition, there is the domain name system ENS, the identity provider BrightID that combines off-chain identities with on-chain identities, and applies on-chain data to various applications such as defi credit lending and even governance.

At present, there are several categories of digital applications. Which of them are you most optimistic about? Welcome to share in the comment area.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/popular-science-what-is-a-decentralized-digital-identity/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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