Decentralized Identity: Techniques and Challenges

This technical report discusses the emerging concept of decentralized identity (DID) as a solution to the challenges faced by traditional centralized identity (CID) systems. It outlines the importance of secure and reliable identity management in an increasingly digital society, where users often face issues such as data breaches and identity theft. The report details various identity verification methods, including username-password models, passkeys, and federated identity systems. It further explains how DID allows users to control their personal data by utilizing digital wallets and distributed ledgers, thereby enhancing privacy and security. The document also addresses the benefits of DID over CID, such as improved trust and reduced risk of data breaches. However, it acknowledges the challenges of interoperability and scalability that must be overcome for widespread adoption of DID solutions. The report concludes by highlighting the ongoing efforts by international organizations to establish standards and frameworks for a decentralized identity ecosystem.