A Brief Story of Identity

The evolution of digital identity from the limited and decentralized Web1 era, through the convenient but centralized Web2 era, to the user-empowered but complex Web3 era.

Web1 Identifiers (1990s)

In the early days of the internet known as Web1:

• Digital identity was limited and decentralized

• People used anonymous usernames or email addresses to identify themselves

• There were no widespread standards or protocols for proving one's identity online

Web2 Identifiers (2000s)

As the internet became more advanced in the Web2 era:

• Centralized identity providers emerged like Google, Facebook, Twitter

• Single sign-on allowed using one identity across multiple websites

• This made identity more convenient but gave control to a few big tech companies

• Privacy concerns emerged around tracking and data collection by identity providers

Web3 Identifiers (2010s-Present)

Web3 is ushering in a new phase of digital identity:

• Blockchain technology enables decentralized, user-controlled identity

• Decentralized identifiers (DIDs) give users more control of their data

• Verifiable credentials allow proving claims without oversharing personal info

• Self-sovereign identity (SSI) puts users in charge of their identities

• But standards are still emerging and adoption is in early stages

The Path Forward

• Digital identity has evolved from limited and decentralized, to convenient but centralized, to user-empowered but complex

• Widespread adoption of SSI is the ideal end state but faces challenges:

  • Technical complexity and lack of standards

  • Entrenched control by big tech identity providers

  • Low awareness and demand by mainstream users

• Continued development of standards and user-friendly SSI solutions will be key

• Regulatory efforts may also help accelerate the shift to user-controlled identity

• While still on the horizon, a future of self-sovereign identity promises greater privacy, security and control for internet users