CHAPTER 17
Decentralized Identity
“If you ask me to quote one implementation in Blockchain that would
lead to mass adoption and to be used by everyone under the sun, it
is Decentralized Identity”. – Debajani Mohanty
Before discussing decentralized identity in detail, we must know how
different it is from traditional digital identity, and also, why is there
even a need for this technology and what all business challenges it
addresses.
17.1 Digital Identity
Identifying someone in the real world is not a big deal; however,
when it comes to the Internet, we use digital identity to get
recognized. Using digital identity, we can identify not just humans,
but organizations, devices, and even animals online. Digital Identity
is necessary for authentication, authorization, access to online data,
registration, and deregistration, and in fact, its role has become
crucial for beginning and maintaining any kind of business
relationship online. Obviously, digital identity is some information that
is unique to a user that the user would not share with anyone. For
example, user ids, bank accounts, credit card numbers, biometrics
data etc. Digital identity is also associated with the user’s personal
data that may require privacy; refer to the following as examples:
Credit card, debit card, or any form of financial details
Health information
Biometric data
Criminal history
Ethnic and racial origin
Sexual orientation