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Benefits of DIM
A method of identity and access management (IAM) known as decentralized identity management (DIM) enables users and computing devices connected to the Internet of Things (IoT) to control their own personally identifiable information (PII). The distributed database is used in a decentralized identification framework to verify the existence of acceptable identity credentials, which are kept in a digital wallet app under the control of the entity whose identity is being sought.
Decentralized identity management has a lot of benefits. Some of the most common are:
- Gives people and digital devices the ability to control their digital identifiers.
- Security: By saving personally identifying information, such as credit card numbers, just once, attack surfaces are reduced.
- The principle of least privilege (PoLP) can be used by entities to specify a minimum or selective access for identification credentials thanks to privacy.
- Self-sovereign identification is another name for the idea of managing PII utilizing distributed databases (SSI). In recent years, as blockchain distributed ledgers have achieved widespread recognition, interest in a distributed method of handling identification credentials has grown.
No Single Point of Failure
Identity credentials are kept in the user’s digital wallet rather than being saved on several vendor websites. The wallet does not have a single point of failure if compromised since it employs encryption and a distributed architecture. Decentralized identification essentially enables users to produce new public and private cryptographic keys by combining all of their identity credentials in a digital wallet app.
A particular wallet is identified by its public key. During the authentication procedure, the user’s wallet contains the private key, which is utilized.
Decentralized identity management is anticipated to be crucial for:
- Web3
- Transactions for decentralized finance
- Automated zero trust network access (ZTNA)
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
