Decentralized Identifiers Definition

A decentralized identifier, or DID, is a unique ID you control yourself. It can represent a person, a company, a device, or even data. Unlike usernames or email addresses that depend on a service provider, DIDs are created and managed without a central authority and can be verified with cryptography.

Core idea

DIDs shift control of digital identity from platforms to users. They let you prove things about yourself without handing over more data than necessary, which reduces tracking and the risk of data misuse. 

Structure of a DID

A DID is a plain text string with three parts: a scheme identifier, a method, and a method-specific identifier. The method tells you how to resolve the identifier on a particular network so others can look up the right public information.

DID Documents and keys

Each DID typically points to a DID Document that lists verification material such as public keys and service endpoints. The public keys support signatures and authentication, while the endpoints tell others where to reach services tied to that DID. The private key stays with the controller.

How DIDs are used

People usually keep DIDs and related credentials in a digital wallet. When an app asks for proof, the wallet can present a cryptographic proof that a statement is true. You can, for example, prove you are over 18 without revealing your full date of birth. The underlying ledger is used to check proofs, not to store your personal data.

Benefits at a glance

• User control: You create and manage the identifier yourself.
• No single point of failure: there is no central registry to breach or take down.
• Privacy by design: you share only what a situation requires.
• Interoperability: open standards aim to make DIDs work across many platforms and services.
• Persistence: identifiers are designed to last beyond any one provider.

Typical use cases

DIDs fit well wherever identity checks happen often or across borders. Common examples include logging in without passwords, verifying qualifications, and enabling trusted interactions between people, organizations, and connected devices. Sectors like finance, healthcare, and e-commerce use the model to cut friction while keeping data exposure low. 

How DIDs compare to traditional identifiers

Traditional identifiers are issued by providers that can change terms or revoke access. DIDs avoid that dependency by letting the controller hold the keys and prove control directly. This design reduces reliance on intermediaries during verification.

Standards and compatibility

DIDs follow a standards track that describes how identifiers, methods, and documents should work together. The goal is a common framework so wallets, apps, and services can understand the same identifiers and proofs.