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Decentralized identity (DCI) democratizes digital identity by decentralizing both the storage and the use of identity data. The primary benefits of DCI are privacy, anonymity and user autonomy. DCI tools include a trust fabric, typically a distributed ledger like a blockchain; a digital wallet, which is tied to an entity (user); verifiable credentials (VCs), which represent identity attributes used to prove identity claims; and decentralized identifiers (DIDs), which establish pseudonymous relationships for issuing and verifying claims. DCI systems are delivered via software and SaaS capabilities. Users are primarily humans, but machines and even business entities can be users of DCI. DCI is used for user verification, identifying and tying a physical person to an identity wallet, and for user authentication and authorization, authenticating that user and authorizing them to access resources and data. Unlike conventional approaches, DCI does not use central stores of identity data, instead decentralizing the identity data, relationships between a user and service provider, and verification.

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