Decentralized Identifier (DID)

November 21, 2023 - Around 3 mins mins to read

Understanding Decentralized Identifiers (DIDs)

A Decentralized Identifier (DID) is a trust framework that utilizes universally unique identifiers (UUIDs) that are cryptographically verifiable and do not rely on a centralized registration authority. DIDs have the ability to identify individuals, abstract entities, organizations, data models, and Internet of Things (IoT) devices.

The primary objective of DIDs is to empower internet users with control over their own identities and enable them to generate unique identifiers using trusted systems. By employing cryptographic proofs like digital signatures to authenticate these identifiers, both individuals and organizations can benefit from secure, private, and seamless data exchange facilitated by blockchain’s distributed ledger technology (DLT).

In the current digital landscape, it is often necessary to provide important information to access apps, websites, services, and devices. However, the existing technology of universally unique identifiers (UUIDs) and uniform resource names (URNs) relies on a centralized registration authority and lacks the ability to cryptographically verify ownership of the identifier. This frequently results in privacy breaches, data theft, and related issues.

With the DID framework, users can securely store various accepted identifiers, such as government-issued certificates, educational and tax certificates, and other personally identifiable information (PII), in a private digital wallet. Instead of depending on a central authority to manage the user’s identity, a blockchain-based distributed ledger serves as the source of all identifiers stored in the wallet. The identification information is not stored on the ledger but in a user-managed wallet. This empowers individuals to selectively share different aspects of their identity with different services as desired.

In contrast to the centralized framework, users can selectively present only the necessary information to any entity, such as a website or app. These entities can verify the authenticity of the proofs through a blockchain-based ledger. For instance, if you need to register for a new online service that requires proof of being over 18 years old, the decentralized framework enables you to control which information is shared from your digital wallet with the online service. You can provide proof of being over 18 without disclosing your actual date of birth.

The Structure of a DID

The core DID draft, initially published by W3C, defines a Decentralized Identifier as a simple text string comprising three parts:

The DID URI scheme identifier, which is stored on-chain.
The DID method identifier.
The DID method-specific identifier.

DIDs are part of a global key-value database, where compatible blockchains like Ethereum host the DID Documents. These documents contain information such as public keys, service endpoints, and authentication protocols. DIDs act as keys, and the DID Documents serve as values, describing specific data models for establishing cryptographically verifiable interactions with the identified entity in the decentralized ecosystem.

Importantly, a DID Document includes a public key for authentication, and the owner of the document can prove ownership by utilizing the associated private key.

About the Author:

Donald Bullers has over ten years of leadership experience in technology and software development. He has held the position of vice president at a prominent digital agency and is the founder of Tuum Technologies.

Donald is an early adopter of blockchain technology and a confident leader with a keen interest in cloud computing, Web 3.0, and digital identities. He leverages his extensive knowledge and expertise to assist software teams in building products for the decentralized ecosystem using Elastos and Web 3.0 technology.

Connect with Donald directly on Twitter.

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