Identity Management: Decentralized Identity, DIDs & Verifiable Credentials

When talking about Identity Management, the process of creating, storing, and verifying digital identities for people, devices, or organizations. Also known as digital identity, it forms the backbone of online trust. Decentralized Identity, a model that lets users control their own identity data without a central authority is a key pillar of this model. The system Identity Management encompasses Decentralized Identity, and it relies on Decentralized Identifiers (DIDs), unique, self‑generated IDs stored on a blockchain or other distributed ledger to prove ownership without revealing extra details. Together they enable a trust‑less flow: users own their identifiers, and services verify them without a middleman.

How Self‑Sovereign Identity and Verifiable Credentials Fit In

To make Decentralized Identity practical, the concept of Self‑Sovereign Identity, the principle that individuals should fully control, present, and revoke their identity data is essential. Self‑Sovereign Identity requires DIDs and gives people the ability to share only what’s needed. Verifiable Credentials, cryptographically signed attestations about a subject that can be checked without contacting the issuer are the data packets that travel with those DIDs. They enable secure identity verification for apps, banks, and even digital wallets. A digital wallet stores DIDs, verifiable credentials, and the keys needed to sign transactions, turning a phone into a portable identity hub. This trio—Self‑Sovereign Identity, Verifiable Credentials, and digital wallets—makes it possible for users to prove who they are in a privacy‑preserving way.

If you’re curious about how these pieces work together, the articles below break down the tech, the benefits, and real‑world use cases. From step‑by‑step guides on setting up a DID to deep dives on credential standards, you’ll find the practical insight you need to start building or using decentralized identity solutions. Dive in and see how each component fits into the broader Identity Management ecosystem.

Decentralized Identity Management: How It Works, Benefits, and Real‑World Use Cases

Decentralized Identity Management: How It Works, Benefits, and Real‑World Use Cases

A clear, human‑focused guide to Decentralized Identity Management, covering how DIDs, Verifiable Credentials, wallets, and SSI work, plus benefits, challenges, real‑world use cases, and future trends.

Jun 14 2025