Decentralization digital identity: Reshaping the network trust system

In today's internet world, users are frequently asked to provide a large amount of personal information, such as birthdays, phone numbers, and more. This data often becomes a tool for companies to profit, an object for government archiving, and even a target for hackers to steal. To prove their identification, users have no choice but to provide more information than necessary.

However, Web3 technology brings us a new possibility: a truly user-controlled identification system. Decentralization identity (DID) allows users to fully own their digital identity and flexibly decide what information to share and with whom.

The Working Principle of Decentralized Identification

DID can be regarded as a "digital passport number" autonomously created by users. It is different from traditional email addresses or government-issued identification, as it is generated and recorded by users themselves on decentralized networks like blockchains. This identity cannot be revoked and does not rely on any single platform or institution.

"Verifiable Credentials" are electronic certificates of copyright issued by trusted institutions, such as driver's licenses and diplomas. These credentials are stored in the user's digital identity wallet. DID serves as the core anchor of identification, while each credential links to specific information.

The main advantage of this system is that it no longer relies on centralized databases, greatly reducing the risk of data breaches. Users are no longer tied to specific platforms, and the verification process can be completed instantly through encryption technology. This means that users no longer need to upload identification or fill out a lot of information to register on new platforms. The system is designed to support cross-platform interoperability, allowing a single identification to be used in various scenarios, such as airports, hospitals, emails, etc., while users always maintain control over their data.

Awakening of Identification in Web3

The concept of "having your own digital identity" has long existed. During the NFT boom in 2021-2022, millions of users registered ENS (Ethereum Name Service) domain names, such as yourname.eth, which not only made it easier to remember but also became a part of personal branding.

This phenomenon reflects users' desire for an autonomous, independent, and uncaptured "digital presence." The popularity of ENS suggests a deeper need: users want to control their online identification and master the flow of their data. At the same time, the rise of PFP (Profile Picture) NFTs and anonymous identities indicates that identification can be public without exposing real information.

These trends herald the emergence of a new type of identification: cross-platform, Decentralization, user-controlled, while protecting privacy. Today, this identification is no longer limited to avatars or nicknames, but is gradually evolving into a tool and infrastructure that connects the real world.

Decentralization identification in 2025

KILT Protocol is currently one of the most active Decentralization identity projects. It is built on Polkadot, allowing organizations to issue and verify credentials, which are stored by users in their own wallets. Users can verify their identification without uploading sensitive data.

KILT has been applied in multiple real-world scenarios:

• Game: Players can prove ownership of game assets and reputation without revealing their real identity.
• Enterprise: Optimize KYC processes and credential verification, accelerate user onboarding, and reduce compliance risks.
• DePIN project: Identification of participants connecting physical and digital systems
• AI tools: verify content sources, establish a basis for "human real existence"

The common advantages of these applications are: users can verify their identification without losing control over their data, the trust within the system is both verifiable and transferable, while privacy is protected by default.

Decentralization Identification Challenges

Although the infrastructure for decentralized identity has basically taken shape, there are still many challenges to achieve widespread adoption. Factors such as lack of standardization, unclear regulations, and the need for improvement in user experience may make ordinary users feel that the threshold is quite high.

However, there has also been positive progress. The global web standards organization W3C has officially recognized DID and Verifiable Credentials as web standards. This means that Decentralization identity has become an important component of the future development of web architecture.

The existing issues include:

• Can privacy regulations keep up with technological development?
• Can users trust systems they do not fully understand?
• Can the login experience be as simple as mainstream platforms, but without requiring users to exchange data for convenience?

Polkadot: The Future Built on Digital Sovereignty

Polkadot founder Gavin Wood emphasized that digital identity is at the core of a more open and equitable internet. His vision is "self-sovereignty" – users control their own data rather than handing it over to platforms. At the Decoded conference in 2024, he presented a series of important concepts: privacy-first, selective disclosure, and Decentralization of individuals.

KILT is the practice of this concept. As a native rollup on Polkadot, KILT provides a scalable, secure, and interoperable identification credential issuance and verification system. It leverages Polkadot's shared security, low fees, and multi-chain connectivity advantages, making the construction of digital identity more sustainable and applicable.

Polkadot Achieves Large-Scale Decentralization of digital identity

Polkadot's multi-chain architecture and neutral design are particularly suited for identification infrastructure. Developers are using KILT to meet the real-world needs across various industries, from reusable KYC to privacy-preserving identity layers in AI, DePIN, and gaming. Because KILT operates within the Polkadot ecosystem, credentials can flow between different services and communities, achieving continuity without sacrificing privacy.

For Polkadot, identification is not just an additional feature, but the foundation of its long-term vision: a more private, interoperable, and user-controlled internet.

Conclusion: From Login Account to Digital Self

The current login systems are primarily designed for platforms, not for users. They trade access rights at the cost of data collection, sacrificing privacy and autonomy. Decentralization of identification is rewriting this model, allowing users to regain control over their digital identity, deciding what to share, when to share, and with whom to share.

Although still in its early stages, the relevant ecosystem has already taken shape. From standard setting to practical application, there are already real-world cases in AI, DePIN, and the gaming sector. Web3 is not just about tokens and technology; it is also a transformative process that empowers people with "digital identity sovereignty." The future of identification will be sovereign, interoperable, and user-controlled, and Polkadot is striving to make this future a reality.