Decentralized identity has become more important for developers than ever. Many reasons push us toward the adoption of a decentralized identity. A report by Flashpoint, 2024 Global Threat Intelligence Report, states that cases of data breaches have increased by 429% in early 2024. This clearly shows how efficient centric solutions are.  

With a decentralized identity, individuals get control over their data. EveryCRED provides this solution backed by blockchain technology. It has the potential to reshape many industries including finance, supply chain, healthcare, etc.,  

The global decentralized identity market is expected to generate revenue of $6.8 billion (about $21 per person in the US) in 2027. So as a developer, understanding the potential of decentralized identity is very important. 

The Problems with the Centralized Identity Systems 

The old way of managing identities online, where everything is kept and managed in one central spot, has some serious drawbacks and risks: 

• It’s Not Very Secure: When all our data is in one place in a centralized database, it can be a primary and easy target for hackers. If they break in, they can steal information from millions of people at once. 

• Less User Control: We don’t get to decide how our personal information is collected, stored, and shared by the centralized authorities or companies. 

• It’s slow and frustrating: Proving who we are online often involves a lot of back-and-forth and waiting, which can be a real pain. 

These issues have led many people to look for a better identity management solution – one that puts our privacy, security, and control first. 

Decentralized Identity Can Be the Best Solution 

Decentralized identity is a new approach that solves a lot of these problems. It employs blockchain tech to let you own and control your digital identity without relying on middlemen. Here’s how it works: 

• Self-Sovereign Identity (SSI): You create and manage your own digital identity using decentralized identifiers (DIDs) and verifiable credentials (VCs). 

• Blockchain-Based Storage: Your identity data is stored on a secure, tamper-proof blockchain ledger, which means it can’t be messed with or accessed without your permission. 

• You Choose What to Share: You can pick and choose which information about your identity to share with different people and companies, so you are not giving away more than you need to. 

By putting these ideas into practical action, decentralized identity gives you more control over your personal information while making it easier and safer for developers to build apps. 

Know More: Decentralized Identity: Everything You Need to Know About 

Why Decentralized Identity Is Beneficial for Developers 

Decentralized identity offers many benefits for developers who want to create user-friendly, secure, and scalable apps: 

1. Better Security 

Among the biggest advantages of decentralized identity is the security it offers. Since the data is not stored on a centralized database, hackers would try to attack. Even if a service is compromised, user credentials and personal information remain safe in their wallets. 

For developers, this means: 

• No headache of storing sensitive user data 

• Easy compliance with data protection regulations like GDPR 

• Privacy guaranteed to users 

2. Easier for Users 

Decentralized identity can make user onboarding and authentication very easy. Instead of creating new accounts for every service, users can use their existing decentralized identities. This allows for passwordless login. 

Benefits for developers include: 

• More conversion due to easier sign-up 

• Reduced support costs from forgotten passwords 

• Smooth cross-platform experiences 

For example, a developer building a social media app could let users log in with their self-owned identity, giving them instant access to their profile, contacts, and content without having to sign up separately. 

3. Interoperability 

Decentralized identity solutions are designed to play nicely with each other, which means that verifiable credentials created on one platform can be easily used and verified by others. This creates exciting possibilities for developers to build more connected experiences. Advantages include: 

• Easy integration with third-party services and APIs 

• Use existing identity verification from trusted sources 

4. Simpler to Build 

Using and implementing a decentralized identity requires learning new concepts and technologies, but it simplifies many aspects of development. Developers can focus on their core app logic and offload the identity management to standardized protocols. 

Benefits for developers include: 

• Simplified user management and authentication 

• No need for password hashing and storage 

5. New Business Opportunities 

With a decentralized identity, developers have new options for businesses and make money. They can create user-centric apps across multiple industries i.e., healthcare, education, supply chain, insurance, automobile, etc., Developers can build applications that incentivize users to share specific data in exchange for rewards or improved services. 

Potential opportunities include: 

• Micropayments for data access or API calls 

• Premium features unlocked by verified credentials 

• New marketplaces for data and identity services 

For instance, a fitness app could offer users discounts on health insurance by verifying their workout data from wearable devices, with user consent. 

Read: Future of DID: Complete control over credentials with EveryCRED 

EveryCRED Is the Best Decentralized Identity Solution 

EveryCRED is a trusted provider of decentralized identity solutions. We offer developers a complete set of tools and services to make it easy to add decentralized identity to their apps. 

With EveryCRED, developers can: 

• Issue and verify secure, verifiable credentials using the EveryCRED platform and API. 

• Create a network of credential issuers and verifiers 

• Use advanced privacy techniques for secure login and data sharing. 

• Launch branded identity wallets for their users 

With EveryCRED’s offerings, developers can easily adopt a decentralized identity and take advantage of a more secure, user-friendly, and efficient management solution. You can contact us to understand its implementation. 

The Bottom Line 

Decentralized identity is a huge shift in how to design management of digital identities online. By giving users back control of their personal information, while it creates a much more secure, interoperable, and efficient layer for building an app for developers, decentralized identities hold a bright promise for the future face of online interactions. 

If the decentralized identity world does continue to grow, then it is obvious that only a developer embracing this technology today will be best positioned to create new, innovative, user-centered applications and drive business value in a decentralized future for digital identity.