With decentralized identity (DCI), access is distributed across multiple environments. This means that users must use different credentials for any applications they access. Decentralized identity lets individuals store identity-related data in a digital wallet on their own mobile device. In this wallet, a pair of public and private keys are created that allow the user to share only the information required to complete a transaction and nothing more. The data is kept only in the user’s digital wallet and not stored by enterprises, so the user always has control. They can keep that information and their sharing preferences up-to-date.

In summary, organizations issue users a verifiable digital credential stored in a digital wallet. Users present their credentials to organizations that can verify the information instantly without contacting the issuer. This approach to identity management allows users to control their identity information. Sometimes referred to as “identity on the network edge” or self-sovereign identity, it eliminates the need for users to provide unnecessary personal information to access a service. Do you need to hand over your driver's license, including your home address, just to prove your age?