What is the role of decentralized identifiers (DIDs) in a phone number-less future?

[suhashini25]

In a future where traditional phone numbers might become less central to digital identity and communication, Decentralized Identifiers (DIDs) are poised to play a transformative role. DIDs are a new type of globally unique identifier that enables verifiable, decentralized digital identity, putting individuals and organizations in control of their own data without reliance on centralized authorities like governments, corporations, or telecom operators.

Here's the role of DIDs in a phone number-less future:

Self-Sovereign Identity (SSI) and User Control:
The core principle of DIDs is self-sovereign identity, meaning users have ultimate control over their digital identity and the data associated with it. Unlike phone numbers, which are issued and controlled by mobile network operators and often linked to government-issued IDs (like the NID in Bangladesh via biometric SIM registration), DIDs are generated and managed by the user themselves, often using cryptographic keys. This fundamental shift empowers users to decide what personal information they share, with whom, and for how long, enhancing privacy significantly.

Decoupling Identity from Centralized Authorities:
Phone numbers serve as critical identifiers in many digital services, particularly for authentication (e.g., SMS OTPs) and account recovery. However, this ties a user's digital identity to a single, centralized entity (the telecom operator). This centralization creates vulnerabilities, such as SIM swap fraud (where criminals trick operators into porting your number to their SIM), and allows for potential surveillance or data control by the operator or government. DIDs, by contrast, are designed to be decoupled switzerland phone number list from such centralized registries, reducing single points of failure and enhancing censorship resistance.

Enhanced Security through Cryptography:
DIDs leverage strong cryptographic methods, primarily public-key cryptography. Each DID is associated with a DID Document, which contains public keys and other verification methods. When a user needs to authenticate or prove an attribute, they use their corresponding private key to create a digital signature. This signature can then be verified by anyone using the public key in the DID Document, proving control over the DID without revealing sensitive personal information. This cryptographic security makes DIDs inherently more resistant to identity theft and impersonation than systems relying on phone numbers and SMS.

Verifiable Credentials (VCs) as a Data Layer:
In a DID-based ecosystem, DIDs act as the unique identifiers for individuals or entities. The actual claims about an individual (e.g., their age, educational qualification, address, or even their phone number, if they choose to share it) are contained within Verifiable Credentials (VCs). VCs are tamper-proof digital attestations issued by trusted third parties (issuers, like a university for a degree, or a bank for an account balance).

A person (the "holder") receives a VC (e.g., a digital driver's license) from an issuer (the government) and stores it securely in a digital wallet linked to their DID.
When a service provider (the "verifier") needs to confirm an attribute (e.g., that you are over 18), you present the relevant VC. The verifier can cryptographically verify the VC's authenticity (that it came from the legitimate issuer and hasn't been tampered with) and your control over it (via your DID) without needing your full identity or a phone number. This allows for selective disclosure of information, vastly improving privacy compared to current systems where giving out a phone number often implies giving away more data.
Multi-Purpose and Context-Specific Identifiers:
Instead of one phone number being used for various contexts (personal, banking, social media), DIDs allow users to generate multiple DIDs, each specific to a different relationship or context. This means you could have one DID for your bank, another for social media, and yet another for a specific online service. This compartmentalization further enhances privacy, as actions taken with one DID cannot be easily linked to another, preventing the creation of comprehensive digital profiles by third parties.

Interoperability and Global Reach:
The World Wide Web Consortium (W3C) has standardized DIDs, aiming for global interoperability. This means DIDs and VCs can be used across different platforms, applications, and even national borders without requiring a central intermediary or a country-specific identifier like a phone number. For countries like Bangladesh, which is rapidly digitizing, DIDs could offer a robust and secure way to build a digital identity infrastructure that complements or eventually reduces reliance on the National ID (NID) for certain online interactions, offering greater user agency.

While a complete phone number-less future might be some time away due to existing infrastructure and user familiarity, DIDs represent a fundamental shift towards a more secure, private, and user-centric model of digital identity. They offer a powerful alternative to centralized identifiers, promising to redefine how we interact, authenticate, and transact online.