TECH5 Technology Blog
Digital Universe
The world is increasingly becoming digital, and we interact with digital ecosystems daily. We use digital means to interact with other humans or systems. Digitization is becoming a foundational need. While it adds convenience, it has also made it equally convenient for bad actors to take advantage. The race is for increasing security and privacy to build trust in this ecosystem to ensure adoption.
The Role of Digital Identities in a Trusted Ecosystem
Definition of Digital identities
Digital identities refer to the digital representation of individuals and entities encompassing various attributes and credentials.
Trust in the digital ecosystem
By verifying digital identities, systems & actors can establish trust before interacting due to enhanced security and privacy.
Applications for humans and entities
Digital identities apply to individuals and organizations/entities facilitating various interactions across platforms and industries.
The Evolution
The Internet was designed for machines to communicate using unique identifiers (e.g., IP addresses).
Humans use the internet through applications like web browsers.
Since many could use the same computer, the need arose for human-specific identifiers to distinguish users.
Differentiating Human Identities Online
Email addresses became an early form of digital identity, linking users to a reachable address on the internet.
The email account/client became the early “wallet,” accessed using a shared secret (password).
This email system enabled exchanging messages with attachments and their storage for future use.
Identity Layer
- Email addresses provided a simple yet insecure way to identify users. It also lacks privacy, control, security, and interoperability.
- Other forms of identity approaches also pose similar problems.
- So in web3, an identity layer was introduced using technologies like Decentralized Identifiers (DIDs) and Verifiable Credentials (VC).
web 2.0
Centralized, human mediated, rent seeking
web 3.0
Decentralized, autonomous
Decentralized Identifiers (DIDs)
- DIDs function as unique, tamper-proof identifiers and enable digital addresses.
- They can represent humans, organizations, or non-human entities.
- Cryptographic methods allow owners to prove ownership/control of DID to establish trust.
- A document tied to DID called DIDdoc contains relevant information, including the address to reach the owner. Typically, a wallet becomes a tool for the owner.
DIDs for Humans
- For humans, DIDs need to be bound to verified human identities.
- Methods include leveraging trust anchors and biometric-based identity proofing and binding.
- Digital wallets facilitate secure interaction, storage, and exchange of credentials/assets leveraging the DID.
- Verifiable Credentials (VCs) play a key role in the digital ecosystem.
Verifiable Credentials (VC)
- They are standardized credentials that can be instantly verified using digital cryptographic methods. They contain a list of claims.
- VCs are issued to DIDs, which can be securely stored in the designated digital wallet.
- Wallet applications let users manage, present, and share credentials with trusted third parties.
- VCs have a unique technique to perform selective disclosure and zero-knowledge proof (ZKP).
VC Enable Trust
- Digital Ecosystem exist in Silos with fragmented trust leading to fraud, security breaches, and lack of privacy.
- By leveraging the digital identities of humans and entities, a solid framework can be established to ensure trust and security between actors.
- The highest level of privacy can be achieved by leveraging the selective disclosure facilitated by VC and point-to-point communication.
Role of Biometrics
- Humans are at the center of the digital ecosystem and interact with it for all their digital needs.
- Thus, ensuring that alive and rightful people join the ecosystem and that each interaction is secured is critical.
- Biometrics are key in ensuring accurate onboarding, followed by authentication during transactions for security and privacy.
DPI (Digital Public Infrastructure)
DPI is an ecosystem of shared, secure, and interoperable digital systems supporting access to broader public and private services.
Digital Systems in DPI:
- Digital identity
- Digital payments
- Digital post and notifications
- Digital registries / data sources
- Data exchange
The Future of Digital Identities
- DIDs and verifiable credentials enhance security, privacy, and interoperability.
- Digital wallets with biometric capabilities empower users with control over their identity and interactions.
- A robust digital identity ecosystem fosters trust and efficiency in online interactions.
Digital identity is critical to securely and efficiently leverage other digital systems.
about T5-Digital ID
Trust in Digital Ecosystems
Author: Rahul Parthe