Decentralised Identity: A safe protector for managing digital identity faces hurdles

economictimes.indiatimes.com:

digital ID systems already introduced and the results have been rather mixed. India being one, with its unique identification system, Aadhar.
The decentralised identity (DID), an emerging digital identity management system, has a lot to offer. However, it certainly cannot hide from the risks it poses.

Empower Your Corporate Journey with Strategic Skill Courses

A Moody’s report suggests that DID brings individual control over personal credentials, shorter sign-up times and enhanced data security via encryption on decentralied ledgers. It can also aid in lowering online fraud by demanding user verification through blockchain-based solutions.

On the other hand though, Moody's flagged that a more widespread use of DID faces multiple problems.
“DID brings potential solutions to current ID issues but also presents challenges, including technical complexity, cyber risks, interoperability issues among different frameworks, potential for data exploitation, and possible social repercussions,” the report added.

Understanding Digital ID management

Centralied, federated and decentralised are the three forms of systems for managing digital ID.

A user's identifying information and access to online resources are controlled and managed by a single organisation in a centralised system. These entities may be a bank, social networking platform, or government electoral roll.
Under this, the organisation has the right to discard user identity information, such as name, address, and social security