Today, individuals’ personal data that make up their digital identity are often stored in a centralized way and linked through contrivances, apps, and third-party accommodations. Users do not have control over what personal data they optate to apportion and how they optate to apportion it, making it potentially more vulnerably susceptible to data breaches and cyberattacks. Blockchain & NFTs Decentralized Digital Identity On Web3

The advent of Web3 has transmuted the way we interact with each other online. Blockchain-predicated applications run independently without intermediaries, engendering a decentralized internet where an individual can be the sole owner of their data. Web3 users can customize their profiles and store personal data in a singular account that will sanction them to utilize it for everything online, from accessing convivial media platforms to logging in to their crypto wallets.

What Is Decentralized Identity?

Users can engender and control their digital identities without depending on third-party accommodation providers. Concretely, decentralized digital identity (DDID) is a decentralized system that aims to reconstruct the current centralized identity management utilizing blockchain technology.

For example, a standard for digital credentials called Verifiable Credentials (VCs) can tokenize a user’s identity to enable storing it in a non-custodial wallet. Users can relinquish all or certain aspects of their identity and personal information to third parties, such as the regime, banks, or schools, at their discretion. It will additionally make storing information more facile in a single source. Another example is self-sovereign identities (SSI), which fixate on verified and authentic credentials linked to genuine-world verification data managed in a decentralized way. Blockchain & NFTs Decentralized Digital Identity On Web3

How Does Decentralized Identity Work On Web3?

On Web3, users from all backgrounds can express themselves and interact in incipient ways utilizing implements like NFTs and blockchain. They can be vital in driving and ushering users into an incipient world of liberation and potentiation. Everyone can engender a unique NFT avatar that represents them, and every NFT contains a unique identifier that cannot be replicated. This sanctions for safer interactions in digital communities.

It could be an app or a browser extension wallet that sanctions users to engender their decentralized identity and manage third-party accommodation providers’ access to it. In this design, users are the sole owners of the respective public and private cryptographic keys. Some wallets would make utilization of other authentication methods to secure users’ data. For example, self-sovereign identities (SSIs) link users’ credentials to authentic-world verification data like biometrics and store them on the blockchain. This can additionally avail users self-manage their digital identities without depending on third parties. Blockchain & NFTs Decentralized Digital Identity On Web3

To verify identity in the metaverse, users can sign the transaction with their private key or biometric data on applications that sanction utilizing decentralized identity for authentication. The accommodation provider would then utilize the decentralized identity the utilizer shared to probe for the matching unique DID on the blockchain.

What Are Soulbound Tokens (SBTs)?

They are publicly traceable, making it virtually infeasible to exhibit fake credentials. For example, a Web3 company hiring software developers can utilize SBTs to validate a candidate’s certifications, or an artist can issue NFTs from their Souls as a validation for their artwork.

With SBTs, users can unlock benefits that transform how we view gregarious identities in authentic life. These tokens can accommodate as a way to prove who someone is and substantiate their reputation. Potentially building trusted relationships in decentralized environments.

They represent users’ credentials, potentially integrating a sense of genuine human relationships and communities to the digital world. They can be the building blocks to reshape how humans interact with each other on the blockchain. Like a cumulation of resumes and online gregarious media profiles. Blockchain & NFTs Decentralized Digital Identity On Web3

Benefits Of Utilizing Decentralized Identity

Decentralized identity gives users full custody over their digital identity rather than depending on a centralized server authenticate. It abstracts the desideratum to enter an username and password with an identity wallet so that users can exercise control. Over their metaverse identity and biometric data more facilely in the Web3 environment.

Utilizing blockchain for decentralized identity withal provides robust security and privacy. Decentralized identity data stored on a blockchain is immutable. And less vulnerably susceptible to assail than those held on centralized servers. Data cannot be effaced or edited once recorded on the distributed network, so no external entities can modify users’ records. Blockchain & NFTs Decentralized Digital Identity On Web3


Decentralized digital identity is one of the latest technologies that could avail push the Web3 revolution forward. Users can facilely access all their accounts without having. To recollect multiple usernames and passwords and relish enhanced security and data auspice in the metaverse. Concurrently, organizations can provide personalized accommodations to users while preserving privacy. It might emerge sooner than expected, with start-ups and established businesses already embracing the technology. Such as Microsoft’s incipient product Entra which lets users verify, secure, and manage all types of identities and access requests. However, implementing decentralized identities on an ecumenical scale will not transpire overnight. And requires a joint effort of cooperation and coordination before among businesses and regimes.