Decentralized Identity

Decentralized identity solutions are used in the identity management and verification process to streamline identity operations by reducing user identity fraud, limiting costs associated with provisioning, quickly on-boarding users, issuing digital certificates, and allowing end users a identity verification method which is privacy-preserved. Security risks associated with centrally storing identity information, including regulated data such as personally identifiable information (PII) can also be minimized.  

Decentralized identity software are used by companies to manage or validate the identities of customers, workers, other end users. Even devices such as internet of things (IoT) devices can also be managed. End user can maintain direct control over their identity data and easily revoke or share access to that data by the company validating the identity. Decentralized identity solutions are usually built on distributed ledger technology (DLT) systems, such as blockchain software, in which improved traceability, validation and documentation is offered over traditional identity management solutions.

Name, Birthday, Address, Social Security number and Credit card number are personally identifiable information that can be used to understand the identity of an individual. Addressing privacy concerns is the most important benefit of decentralized identity. Another key concern related to privacy that is addressed by decentralized identity is compliance.