If you wish to manage your own identity in crypto world, you must read this article. Today we will talk about what is decentralized identity and why do we need decentralized identity. So let’s find our by reading this article.
What is decentralized identity?
Decentralized identity is an identity management that allows people to control their digital identity without relying on a specific service provider.
Digital identities are subjects of information about individuals, organizations, or electronic devices that exist online. The data that forms a digital identity includes:
- User name and password
- Search history
- Social Security number
- Purchase history
How decentralized identity benefits organizations?
It allows organizations to immediately verify information without contacting the issuer (such as a driver's license organization or university) to ensure an ID, certificate, or document is valid. Traditional manual verification processes take weeks to months, slowing down recruiting and processing times, while tying up financial and human resources. Imagine being able to instantly verify someone's credentials in seconds by scanning a QR code or running it through a user-friendly credential verification tool. It enables issuing organizations to easily provide verifiable credentials to people and prevent fraud in a way that greatly reduces costs and increases efficiency.
How decentralized identity benefits Individual?
Since users have full control and ownership of their identities and credentials, they are able to prove their claims without relying on any one party. People can decide what information they want to disclose to specific parties, such as governments or employers.
Once people's IDs are stored in their mobile digital identity wallets, neither party can take their IDs. People can easily create and manage their decentralized identities using user-friendly platforms like Dock.
Why do we need decentralized identity?
Decentralized identity aims to provide people with formal proof of identity and full ownership and control of their identity in a secure and user-friendly way. Citizens often require verifiable proof of existence to access essential services such as healthcare, banking and education.
Hopefully, this article will help you to understand, what is decentralized identity and why do we need deentralized identity? In the workforce environment, decentralized identities offer organizations the opportunity to be completely password-less by connecting to a federated identity infrastructure.
