Microsoft announced Decentralized Digital Identities and Blockchain

  • The tech giant, Microsoft announced to Blockchain-Based Decentralized Identification System
  • Microsoft supports Decentralized Identities (DIDs) via the Microsoft Authenticator app.
  • This initiation will solve identification challenges, enhance personal privacy, security, and control

Decentralized Digital Identities (DIDs)

In the Recent post, Director of Program Management, Microsoft Identity División announced Microsoft’s opinion on underlying distributed ledger technologies to use in decentralized IDs (DIDs) through the Microsoft Authenticator App.


The decentralized identity system works at global pace and avoids the possibility of censorship. Unlike traditional identification system controlled by government firms, Microsoft’s identification system built on blockchain technology offers an individual a complete access and control over their identity.

Microsoft’s identification system

After examining the different sorts of decentralized identity systems, Microsoft believes public blockchain could best fit the Decentralized IDs.

As stated,

 “After examining decentralized storage systems, consensus protocols, blockchains, and a variety of emerging standards we believe blockchain technology and protocols are well suited for enabling Decentralized IDs”.

The further explanation says that Microsoft’s cloud systems allow many organizations, developers to achieve heights.

They say, “We aspire to a world where the billions of people living today with no reliable ID can finally realize the dreams we all share like educating our children, improving our quality of life, or starting a business”.

Bitcoin, Ethereum, and Litecoin – Perfect for DID

However, the Identity is one of the paramount use cases of blockchain technology which is nowhere concern to currency or payments. Specifically, Microsoft highlights the three platforms which it thinks perfect for DIDs i.e. Bitcoin, Ethereum, and Litecoin.

To add on, several blockchain projects relating to identity have come up over years, for instance, uPort and Blockstack are most known projects. Therefore, the Microsoft implements particular rules outlined by a W3C working group. But still, they haven’t revealed exact DIDs method integrations.

Also, few criticizers opposed DIDs backed by blockchain technology. They argue identity built on the decentralized system would be too expensive and difficult to use. In order to prevent that, the post points out a two-layer system that can lessen the cost of interactions. Likely, the Lightning Network to scale the Bitcoin’s payments uses case.

Reads the post from Microsoft,

“While some blockchain communities have increased on-chain transaction capacity (e.g. blocksize increases). This approach generally degrades the decentralized state of the network and cannot reach the millions of transactions per second the system would generate at world-scale. To overcome these technical barriers, we are collaborating on decentralized Layer 2 protocols. It will run atop these public blockchains to achieve global scale, while preserving the attributes of a world-class DID system”.

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Kerin is active blogger and guest writer at Coinpedia. She loves writing new updates, price fluctuations and possible insights. Kerin frequently search, review and share her views among large audience via crypto media firms.

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