Decentralized Identifiers (DID)

Decentralized Identifiers are cryptographically verifiable identifiers anchored on decentralized systems that let subjects control the identifier lifecycle without a central issuer. Paired with verifiable credentials, DIDs enable selective disclosure and portable identity across ecosystems. For compliance, DIDs promise privacy-preserving KYC by allowing institutions to verify signed claims such as age, residency, or KYC completion without storing excess personal data.Challenges include interoperability among DID methods, wallet user experience, recovery models, and regulatory clarity. Programs should align with W3C specifications, trust frameworks, and governance covering issuers, verifiers, revocation, and liability. Risk management includes binding DIDs to real-world identities during proofing, detecting compromise, and handling sanctioned parties. Pilots show reduced friction and data exposure, but production must prove assurance, scale, and auditability.