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Table of Contents
2. The core concept of decentralized identity (DID)
3. How to effectively protect personal privacy by DID
4. Will DID replace traditional identity verification?
Home web3.0 What is a decentralized identity? How does DID protect personal privacy? Will it replace traditional authentication?

What is a decentralized identity? How does DID protect personal privacy? Will it replace traditional authentication?

Jul 24, 2025 pm 09:48 PM
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In today’s digital world, our identity information is scattered across platforms and centrally managed by large companies, which not only brings the risk of data breaches, but also makes us lose control of personal data. Decentralized Identity (DID) is a revolutionary solution that aims to return ownership and control of the identity to the user himself, building a safer and more autonomous digital identity system.

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What is a decentralized identity? How does DID protect personal privacy? Will it replace traditional authentication? - php Chinese

2. The core concept of decentralized identity (DID)

1. User sovereignty and control: Users are the only owner and manager of their own identity data. They can decide independently what information to share with whom, without relying on the permission of any centralized organization.
2. Verified Certificate (VC): DID uses encrypted and signed verified credentials to prove the identity statement (such as education, age, membership, etc.). These credentials are issued by authoritative institutions, but users can independently present them to the verifier. The verifier does not need to contact the issuer again to confirm its authenticity.
3. Decentralization and portability: Identity is not bound to any single platform or service. Users can create and manage multiple DIDs and use them freely between different applications, realizing identity portability and avoiding the problem of being locked by a single platform.

3. How to effectively protect personal privacy by DID

1. Minimize information disclosure: Users can only present the minimum information required to complete verification. For example, when you need to prove that you are over 18 years old, you only need to provide a yes or no proof without revealing your specific date of birth or ID number. This is called the selective disclosure technology.
2. Data isolation and prevention association: Users can create independent DIDs for different social, work or financial activities. This practice effectively prevents different platforms from cross-platform tracking and image analysis of users through identity information, greatly protecting users' behavioral privacy.
3. Off-chain data storage: Sensitive personally identifiable information (such as name, contact information) is usually stored in user-controlled personal devices or encrypted data storage, rather than on publicly distributed ledgers. Only public information used for verification and discovery, such as DID identifiers and public keys, are recorded on the ledger, which separates private data from public records.

What is a decentralized identity? How does DID protect personal privacy? Will it replace traditional authentication? - php Chinese

4. Will DID replace traditional identity verification?

1. Supplement rather than complete replacement: In the short term, DID is more likely to be a powerful supplement to traditional identity systems, especially in emerging fields such as Web3 applications, digital asset management, etc. that focus on privacy and user control. It will be parallel to existing systems, giving users more choices.
2. Challenges: The widespread application of DID still needs to overcome some challenges, including the unification of technical standards, the simplification of user experience, the improvement of relevant laws and regulations, and how to seamlessly integrate with the huge traditional IT system.
3. Future Outlook: In the long run, with the maturity of the Web3 ecosystem and digital society, DID is expected to become the core infrastructure of the next generation of Internet with its fundamental advantages in privacy protection and user sovereignty. It will gradually penetrate into more fields such as finance, social networking, government affairs, and reshape our understanding and use of digital identities.

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