Compass Investments

Crypto vs. Dollar

📌 XRPL’s New Identity Technology Controls Data

XRPL has introduced a sovereign identifier in the Decentralized Identifier update. Blockchain

– XRPL has introduced a sovereign identifier in the Decentralized Identifier update.

users will be able to control their own online identity.

This DID positions XRPL as a key player in secure web3 digital identity.

XRP Ledger (XRPL) has launched a revolutionary update that could change the way we manage our digital identities. The update, dubbed Decentralized Identity (DID) Fix, allows users to manage their online identities without having to rely on central authorities such as banks, governments or social media companies.

Instead of companies storing your data, XRPL puts it back in your hands by offering a new approach to digital identity with a focus on security and privacy. This update is supported by 30 out of 35 validators and is a so-called self-sovereign identity.

How DID works on XRPL.

XRPL users can create a unique digital identity that acts like an online fingerprint; Mayukha Vadari, developer of RippleX, says these identities allow users to own their data, interact with the blockchain and cryptocurrency. Security prevents identity theft, he explains.

This is not just an update, but a fundamental shift in how the blockchain protects users and allows them to manage their information.

A decentralized identifier (DID) is essentially a type of digital identity card that is independent of central authorities. Imagine having a digital “fingerprint” that identifies who you are online, but without the risk that a third party can forge it.

This DID is tied to a digital document on the XRPL containing an encrypted key and verification data. This system makes each user’s identity secure, private and unique; Vadari notes that, like a physical fingerprint, a DID can confirm identity without revealing sensitive information.

DIDs are compliant with World Wide Web Consortium (W3C) standards, so they can work across platforms and open up opportunities for new types of digital identity applications DIDs are stored on a blockchain, so they are tamper-proof. They will become globally recognized and set a new standard for secure digital identity.

To make DIDs useful, XRPL combines DIDs with verifiable credentials (VCs) – think of VCs as digital badges that prove your identity and credentials, like a virtual ID, but with added privacy. These credentials allow online applications to verify your identity without revealing personal information such as your address or bank details.

VC can make logging into services, age verification and accessing financial applications more secure and private. Vadari believes VC can be used to prevent problems such as identity fraud and election fraud by creating a secure and tamper-proof way to verify personal information. He believes it can be done.

DID and VC work together to give users, not third parties, control over their data, and at XRPL this combination paves the way for privacy-oriented applications such as Project DeFi and secure digital voting.The XRPL’s DID functionality, while promising, is still in its infancy and adoption remains uncertain.

Other blockchains, such as Cardano and Ethereum, are developing similar DID solutions.

Despite the updates, the XRPL’s reliance on XRP calls into question its full decentralization. The modification of the DID in the XRP ledger is an important step toward a user-controlled digital identity to help users manage their data in the Web3 space. By combining DID and VC, XRPL makes online interactions more secure and convenient for users and and and addresses the growing need for privacy in the digital space.

Bitcoin

Bitcoin

$79,496.60

BTC 3.78%

Ethereum

Ethereum

$3,192.05

ETH 4.72%

Binance Coin

Binance Coin

$636.12

BNB 0.99%

XRP

XRP

$0.59

XRP 5.98%

Dogecoin

Dogecoin

$0.23

DOGE 11.17%

Cardano

Cardano

$0.58

ADA 32.93%

Solana

Solana

$205.85

SOL 1.98%