Web3 Identity: DID and Verifiable Credentials

 Web3 Identity: DID and Verifiable Credentials

🔍 What is Web3 Identity?


Web3 Identity refers to a decentralized approach to identity management. Unlike traditional systems where your identity is managed by centralized authorities (like governments or corporations), Web3 Identity gives you control over your digital identity, leveraging blockchain and decentralized technologies.


🆔 Decentralized Identifiers (DIDs)

What is a DID?


A Decentralized Identifier (DID) is a new type of identifier that is:


Globally unique


Cryptographically verifiable


Self-owned


Unlike traditional identifiers (e.g., email addresses, usernames), DIDs are not tied to a centralized registry. You control your own DID, and it lives on a decentralized network (like a blockchain or DID-compliant system).


Structure of a DID


A DID typically looks like this:


did:example:123456789abcdefghi



did: → The scheme


example: → DID method (defines how it's implemented)


123456789abcdefghi → Unique identifier


Key Features of DIDs


Self-sovereign: You create and manage it—no need for permission.


Interoperable: Works across platforms.


Cryptographically secure: Backed by public-private key cryptography.


📄 Verifiable Credentials (VCs)

What is a Verifiable Credential?


A Verifiable Credential is a digital version of a paper credential (like a driver’s license, diploma, or employee ID), which can be digitally signed and verified.


It contains:


Claims about you (e.g., "Alice has a degree from XYZ University")


Issuer (who gave you the credential)


Proof (digital signature for verification)


Roles in the VC Model


Issuer: Entity that creates and signs the credential (e.g., a university)


Holder: The individual who owns the credential (e.g., you)


Verifier: The party that needs to verify the credential (e.g., an employer)


Example Use Case


Imagine you’re applying for a job:


Your university issues you a VC proving your degree.


You present that VC to the employer.


The employer verifies the VC cryptographically—without contacting the university.


🔐 DID + VC: Self-Sovereign Identity (SSI)


When combined, DIDs and Verifiable Credentials form the foundation of Self-Sovereign Identity (SSI).


Benefits:


✅ Privacy: Share only the info needed (e.g., "I'm over 18", not your birthdate)


✅ Security: Cryptographic proofs prevent forgery


✅ Portability: Use across different platforms and services


✅ No central control: You’re in charge of your identity


🧠 Summary

Concept Description

DID A self-owned, decentralized, cryptographically secure ID

Verifiable Credential (VC) A digital credential that can be cryptographically verified

Self-Sovereign Identity (SSI) A model where users fully own and control their identity

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