The idea behind decentralised identity is to give individuals control over their data and privacy. According to the World Wide Web Consortium (W3C), decentralised identity is enabled through a decentralised identifier (DID), which is a globally unique persistent identifier that does not require a centralised registration authority and is under full control of a DID subject. However, as a DID is just an identifier, it does not provide information about the subject itself. In order to get access to the information, a DID is used in combination with a Verifiable Credential (VC).

Decentralised identity can provide users with the ability to transact and communicate data and assets in an easier and more secure way. In practice, this means easier logins, faster credit checks and overall, simplified verification process of their documents. This approach differs from the current centralised digital identity framework that suffers from a lack of trust and shortcomings in users' control over how their personal information is being shared.

Companies are increasingly exploring and developing Decentralised Identity; the public sector also shows an increasing interest in its features. The European Blockchain Partnership (EBP) was one of the first explorers and adopters of decentralised or self sovereign identity via the European Self-Sovereign Identity Framework use case in EBSI (ESSIF). It integrates components such as DIDs, interchange of verifiable credentials, semantic interoperability with business-agreed schemas and trust and governance models built over decentralised registries.

The integration of all these elements in the EU digital identity programme and the use of the new eIDAS EU digital identity wallet is currently under investigation to create a trusted, secure and user centric identity for all Europeans. Through the Digital Europe Programme, the Commission will continue to support the implementation of ESSIF and Verifiable credentials based use cases within EBSI.

You can learn more about DID and EBSI by checking out our documentation here.