Decentralized identity can bring the analog world into the digital world

As we all know, connected devices require reliable, distributed ledger, technology-based digital identity solutions. This is the basic requirement of the Internet of Things (IoT). In the machine economy, devices must be able to identify and communicate with each other; a powerful identity management solution is the key to effectively protecting data and processes. But what about the large number of simulated “things” around us? Of course, they can also benefit from the emergence of digital identities.

Imagine the following situation: you just ran back from the grocery store or took your dog for a walk in the park, when you suddenly realized that the heirloom ring that was a little loose on your finger was gone. You go back the same way, scan the ground, check the gutters and mole hills, but you leave empty-handed. Many aspects of our daily lives have been transferred to the Internet, and valuable things such as passwords, PIN codes and login credentials have been safely stored in appropriate security solutions. You can retrieve them at any time and manage them centrally. Why can’t your family ring or other simulated valuables have the same thing?

Unlike your email password, your ring currently only exists in the simulated world.You can use a tracking device connected to your phone (such as Apple’s AirTag) to tag it, but this Raise Privacy and security issues may be more than it actually solves-not to mention, it is a heavy and strange jewelry accessory. More importantly, we have a considerable amount of simulated valuables, and it is impractical to install a tracker on each item at a price of $40. Now is the time to talk about the digital identity of analog things and finally invite our precious offline possessions into our increasingly virtual world.

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What is a decentralized digital identity?

Decentralized Identity (DID) refers to the digital identifier of things that exist in the physical world. This digital identifier is placed on an immutable distributed ledger and includes detailed descriptions of attributes, capabilities, and ownership. In practice, this means that there is a reliable record to prove that you are the owner of the missing family ring. It describes the ring closely, making it instantly recognizable. With your credentials, you can prove that you are the owner; just stick or laser a micro QR code or barcode (or other type of scannable identifier) ​​on the object. Depending on the project, digital tags with additional functions are another viable option.

Compared with simple tags or other tracking devices, digital identities have other key advantages. Thanks to its distributed ledger technology (DLT) support, it can be stored securely and ownership can be established without directly pointing to the owner. If you don’t want to publish your personally identifiable information on the ledger-anyway this is a wise decision-you can create your own verified digital identity and associate your analog property with it. In the lost ring example, you have evidence that you own the ring, and you can use pseudonymization to make it more difficult for unpopular third parties to trace your valuables back to you.

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Obvious ownership of unobtrusive value

Simulated things have different types of value-money, emotion, utility-and can attract unnecessary visits and potential theft by bad actors at any time for any reason. Building a strong DLT-based digital identity system for valuable physical objects has the added benefit of deterring theft, because confirming the provenance of the stolen item on the ledger will automatically negate the option of reselling it.

To further prevent theft attempts, you can create different verifiable credentials associated with your digital identity. You can also choose who to share this sensitive information with—if any. Due to selective disclosure, you can reliably establish your ownership of the simulated object without sharing any unnecessary information. For example, a public record on the ledger might list you as the owner of a white porcelain vase with a blue floral pattern, which is 20.5 inches tall and weighs 14.8 pounds.

In different verifiable vouchers, you can specify that the vase is Qianlong, a multimillion-dollar collection. This information does not need to be made public, but if you decide to part ways with precious collectibles, you can share it with potential buyers. Digital identities driven by DLT give you complete control over the amount of information you disclose and how you divide the information so that it meets your personal ownership, identification, and security needs.

related: Decentralized identity is the way to combat data and privacy theft

Identification and authentication worldwide

Cross-platform communication is still a challenge in the digital realm, especially in analog. Verifying the identity and ownership of items across state boundaries and language barriers can be a long, slow, and expensive process involving multiple steps and the services of certified professionals. In the case of particularly valuable items or real estate, verification involves notaries, translators, independent assessors, and even consulates and embassies. The unified digital identity system can replace the lengthy approval and identity verification chain with a simple DLT solution that can immediately confirm the ownership and characteristics of analog items anywhere in the world.

However, digital identities are not only useful for cross-border transactions. With today’s supply chain spread all over the world, tracking materials and product components on all continents is a daunting task, and in any case, it’s still a surprising simulation. Shipment tracking is still often done manually and on paper. The possibility of human error is high, and the error will continue and multiply throughout the life cycle of the goods. Immutable digital identities can accelerate and automate many logistics processes. Special items that require special treatment (such as temperature control or motion stabilization) can be paired with sensors that monitor their transportation conditions. Ultimately, when the item arrives at its destination, the record of its transportation quality and safety cannot be changed.

Such solutions are not limited to the logistics industry. The world is on the cusp of the post-COVID-19 era and its promised international travel. Many of us will fly into the sky in search of exciting new destinations, but sometimes our luggage will not be carried with us.According to statistics before the pandemic, airlines around the world dislocation Approximately 25 million bags per year. It is very likely that it will happen to you too, you know directly how painful it is to track and retrieve your lost luggage. Pair your bag with DID to find it instantly-no longer need to look for one among thousands of black hard-shell suitcases. Airlines can also use DLT-enabled sensors to tag your luggage during check-in. If the baggage handler puts your suitcase on the wrong plane, the sensor will send audio or visual to the baggage handler caveat.

The digital afterlife of analog things

Simulated things can be lost or misplaced-this is their essence. Whether we are talking about production, logistics or personal belongings, such incidents are often costly and distressing. In our increasingly digitalized daily life, our analog assets are in danger of being permanently disconnected. We can pair them with digital identities instead of leaving them behind, thus providing them with the electronic afterlife they deserve without infringing on their nature.

DID does not need to digitize analog objects, nor does it need expensive sensors or high-tech tags to work properly. Instead, it provides an economical, reliable, and versatile way to eliminate offline items from digital blind spots.

The views, thoughts and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.