Decentralized identity is an emerging concept that gives back control of identity to consumers through the use of an identity wallet in which they collect verified information about themselves from certified issuers and store them in a digital wallet.
Decentralized identity is a trust framework in which identifiers, such as usernames, can be replaced with IDs that are self-owned, independent, and enable data exchange using blockchain and distributed ledger technology to protect privacy and secure transactions.
By controlling what information is shared from your wallet to requesting 3rd parties (e.g., when registering for a new online service), the user is able to better manage their identity online and their performance for remuneration, protection from outside intervention, and privacy, your right to determine how and when and if you want to be observed or disturbed.
For example, only presenting proof that they’re over 18 without needing to reveal their actual Date of Birth.