Decentralization digital identity: Reshaping the network trust system

In today's digital economy, personal data has become an important resource. Businesses profit by collecting data, governments use it for record management, while hackers attempt to steal this information. Users are often forced to provide excessive personal information to prove their identification.

However, Web3 technology is providing new solutions to this situation. Decentralized Identity (DID) systems enable users to truly own and control their digital identity, flexibly deciding what information to share and with whom.

Decentralization identification's operating mechanism

DID can be understood as a self-generated "digital passport number". It differs from traditional email addresses or government-issued identification, as it is created by the user and recorded on decentralized networks such as blockchain. This identity cannot be revoked and does not rely on any single platform or institution.

"Verifiable Credentials" are electronic copyright certificates that accompany the DID, such as driver's licenses, diplomas, or age certificates. These credentials are issued by trusted institutions and stored in the user's digital identity wallet. The DID serves as the core anchor of identification, while each credential corresponds to specific information about the user.

The main advantages of such a system include: reduced dependence on centralized databases, lower risk of data breaches; no longer being tied to a specific platform; the verification process can be completed quickly through encryption technology. Users can only prove necessary information, such as "over 21 years old", without disclosing their exact birthday.

Evolution of Identity in Web3

The concept of "owning a digital identity" is not new. During the NFT boom of 2021-2022, many people registered their own ENS (Ethereum Name Service) domain names, viewing them as part of their personal brand. This reflects users' demand for controlling their online identity and mastering the flow of data.

At the same time, the rise of PFP (profile picture) NFTs and anonymous identification demonstrates the possibility that identity can be public without having to expose real information. These trends herald the emergence of a new type of identification: cross-platform, Decentralization, user-controlled, and privacy-protecting.

KILT Protocol: Decentralization in Practice

KILT Protocol is an identification protocol built on Polkadot, which has been applied in multiple real-world scenarios:

• Game: Players can prove asset ownership and reputation without revealing their true identification.
• Enterprises: Optimize KYC processes, accelerate user onboarding, and reduce compliance risks.
• DePIN project: verifying the identification of participants in physical and digital systems.
• AI Tools: Verify content sources, establish the basis of "human real existence"

The common advantages of these applications are: users can verify their identification without losing control of their data, trust can be both verified and transferred, while privacy is protected.

Challenges and Future Development

Although the infrastructure for Decentralization identification has been established, there are still some challenges to widespread adoption: lack of unified standards, unclear regulations, and the need for improved user experience. However, there has also been positive progress, such as W3C officially recognizing DID and Verifiable Credentials as web standards.

The problems that need to be solved in the future include:

• How privacy regulations adapt to new technologies
• How to enhance user trust in the system
• How to simplify the login experience while protecting user data

The Role and Vision of Polkadot

Polkadot founder Gavin Wood emphasized that digital identity is the key to a more open and equitable internet. His proposed concept of "self-sovereignty" highlights that users should have control over their data rather than relying on platforms.

KILT, as a native rollup on Polkadot, provides a scalable, secure, and interoperable identification credential system. It leverages Polkadot's shared security, low fees, and multi-chain connectivity advantages, making the construction of digital identity more sustainable and promising in application potential.

Polkadot's multi-chain architecture and neutral design make it particularly suitable as an identification infrastructure. In the Polkadot ecosystem, credentials can flow between different services and communities, achieving continuity under privacy protection. For Polkadot, identification is not just a function, but the foundation of its long-term vision: to build a more private, interoperable, and user-controlled internet.

Conclusion

The current login system primarily serves the platform, rather than the users. Decentralization identification is reshaping this model, allowing users to regain control over their identity. Although it is still in the early stages, the relevant ecosystem has already taken shape, with practical applications in AI, DePIN, gaming, and other fields.

Web3 is not only about tokens and technology, but also a transformative process that empowers people with "digital identity sovereignty." The future of identification will be sovereign, interoperable, and user-controlled, and Polkadot is driving the realization of this future.