Without an identity layer, data breaches and the misuse of personal data has eroded trust. A decentralised identity approach using distributed ledger technologies (DLT) is gathering pace, standardised by W3C and the Decentralised Identity Foundation (DIF), and backed by companies such as IBM and Microsoft. The underlying distributed ledger infrastructure could potentially be used to facilitate an exchange of assets.
Decentralised identity is an emerging concept that gives back control of identity to consumers through the use of an identity wallet in which they collect verified information about themselves from certified issuers (such as the Government). By controlling what information is shared from the wallet to requesting 3rd parties (e.g., when registering for a new online service), the user is able to better manage their identity online and their privacy – for example, only presenting proof that they’re over 18 without needing to reveal their actual Date of Birth.