The benefits of digital identity and why it shout be decentralized

background, digital

Although the term digital identity might sound a bit scary, it’s nothing to worry about. Basically, everyone who uses the internet in some way has such an identity. Email is another example, as well as social network profile. But what if there is a way to make even things you can’t transfer to the internet easily traceable? Let’s take a look at that.

Digital identity

There is a way to take digital identity to an even higher leve, if you make it decentralized. That would work on the basis of a trusted identifier that resides on a distributed ledger, similar to the blockchain Bitcoin runs on. Thus, for all your property, digital and even physical, there could be a reliable record by which all your belongings would be easily traceable. All that would be needed would be a readable identifier on them, such as a small QR code that can be printed, stamped or taped.

Decentralization and its advantages

In some cases of ownership, the owner may fear theft. Decentralized digital identity takes care of that. In the case of cryptocurrencies, everyone in the network confirms the transaction. The same applies in the case of identity; if an object is stolen, the owner enters a record of the theft and everyone in the network confirms it. Thus, the stolen object cannot be sold.

The icing on the cake, however, is the privacy that this identity can give you. There is no need to share your information with the world and you can just choose what you share. In the event that you decide to sell an item, you can only share certain data that provides enough information about the true ownership and possibly information about the item.

Decentralization would make all the information impossible to be hacked, stolen or misused.

Tip: This article could also be interesting for you: The evolution of NFT


Decentralized digital identity is the next level that will definitely be needed in a decentralized world. It is fair, non-abusive, respects the privacy of the owner and gives back the control of online provided private data to their owner, instead of big corporations.


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