Evaluation and characteristics of the development standards for decentralized identities (DIDs)

Abstract

In the evolving landscape of digital technology, the concept of identity verification and management has become a cornerstone of online interactions and transactions. This thesis delves into the transformative potential of Decentralized Identifiers (DIDs) in reshaping the digital identification paradigm, with a particular focus on the underlying blockchain technology that facilitates this shift. The study aims to evaluate the development standards of DIDs and their efficacy in addressing the inherent challenges of traditional digital identification methods. The first chapter lays the foundational understanding of blockchain technology, elucidating its pivotal role in the realm of digital identification. It provides a comprehensive overview of blockchain's fundamental components and explains how these elements are crucial in the context of DIDs. The chapter further explores the current landscape of digital identification, highlighting the limitations and vulnerabilities of existing systems, such as centralized data control, privacy concerns, and susceptibility to fraud. In the second chapter, the thesis shifts its focus to Decentralized Identities themselves. It begins by defining DIDs and tracing their evolution from a conceptual standpoint to their current developmental state. This section critically examines the technical framework and standards governing DIDs, offering insights into how they promise enhanced security, user autonomy, and privacy in digital interactions. The chapter also contrasts DIDs with traditional identification methods, showcasing their superiority in addressing issues like data breaches and identity theft. The third chapter presents a practical perspective through real-world case studies. It examines three distinct applications of DIDs across various sectors, including healthcare, government and IoT. Each case study provides empirical evidence of how DIDs are being implemented and the impact they are having on these sectors. This section not only highlights the versatility and adaptability of DIDs but also discusses the challenges and future prospects in their broader application. In conclusion, this thesis underscores the transformative potential of DIDs in revolutionizing digital identification. By leveraging blockchain technology, DIDs offer a more secure, efficient, and user-centric approach to identity management. The findings from the case studies suggest a growing trend towards the adoption of DIDs, indicating their pivotal role in the future of digital interactions. The thesis concludes by emphasizing the need for ongoing research and development in this field to fully realize the potential of DIDs in fostering a more secure and equitable digital world.