DID - Secure and User-Friendly Decentralized Identity Solution

In the digital age, managing online identities is becoming increasingly complex and risky. DID (Decentralized Identity) offers a completely different approach — allowing individuals, organizations, or even devices to create and control their own digital identities without relying on any centralized authority. This article explores popular DID solutions built on various blockchains and the benefits they provide to users.

What is DID? Why is Decentralized Identity Necessary?

Decentralized Identity (DID) is a form of digital identification that gives users full control. Unlike traditional identifiers such as usernames, email addresses, or social security numbers — which are managed by centralized organizations — DID is entirely created, owned, and managed by the individual.

The main advantages of DID lie in security and privacy. Since DIDs are registered on blockchains or other distributed ledgers, they are highly resistant to forgery and have no single point of failure. Each identity owner can independently verify and update their information without intermediaries. This decentralized approach offers users greater control compared to traditional centralized identity systems, while significantly reducing the risks of data leaks or censorship.

ENS on Ethereum: User-Friendly Domain Names

ENS (Ethereum Name Service) is one of the earliest DID applications built on the Ethereum blockchain. Instead of remembering long, complex Ethereum addresses (e.g., 0x742d35Cc6634C0532925a3b844Bc9e7595f42e), users can simply use memorable names like “alice.eth.”

ENS operates with two main components: the Registry and the Resolver. The Registry is a smart contract that stores all domain names, recording information about ownership, resolution, and expiration. The Resolver is responsible for translating human-readable names into addresses or data that computers can understand. ENS also supports reverse resolution, linking metadata to a specific Ethereum address.

The advantage of ENS is its user-friendliness. Registering and managing domain names can be done via any wallet or application supporting ENS, providing an easy-to-use interface even for newcomers to blockchain technology.

.bit on Nervos: Cross-Chain Compatibility

.bit is a cross-chain decentralized account system built on Nervos CKB — a Layer 1 blockchain designed to support multi-chain applications. The .bit domain (e.g., “alice.bit”) can serve multiple purposes: transferring cryptocurrencies, resolving domain names, or verifying identities.

A unique feature of .bit is its broad compatibility. Users can register and manage .bit accounts using any public blockchain address — not just Ethereum but also Bitcoin, Nervos CKB, or others. It’s even possible to register with an email address, lowering entry barriers for beginners.

The architecture of .bit includes five main components: the core protocol (smart contracts on Nervos CKB), Keeper (off-chain program that triggers transactions), resolution service, SDK for integration, and a Dapp interface for users. Thanks to flexible signature algorithms, .bit allows users to manage assets on Nervos CKB with private keys from other public chains.

Comparing ENS and .bit: Two Different DID Approaches

Although both ENS and .bit are decentralized DID solutions, they are built on different technologies and have distinct advantages.

Blockchain platform: ENS is built on Ethereum, while .bit is based on Nervos CKB. This directly impacts compatibility: ENS mainly targets Ethereum addresses, whereas .bit offers broader multi-chain support.

Domain suffix: ENS uses “.eth” (e.g., alice.eth), while .bit uses “.bit” (e.g., alice.bit). This helps users quickly identify which identity system they are interacting with.

Management mechanism: In ENS, the owner can be an externally owned account (EOA) or a smart contract. With .bit, owners can be private keys from any blockchain or even an email, offering greater flexibility.

Technical architecture: ENS uses a two-step resolution process (querying the registry then the resolver), whereas .bit analyzes global state based on Nervos CKB transactions. Each approach has its own advantages in speed and cost.

DID vs DNS: Why Is Decentralized Identity Better?

To understand the value of DID, it’s helpful to compare it with DNS (Domain Name System) — an older but still widely used technology today.

Architecture and control: DNS is a hierarchical, centralized system managed by organizations like ICANN. This means a few entities have the authority to make decisions. In contrast, DID is built on a decentralized blockchain — no central authority can control or seize your identity.

Privacy and control: With DNS, third parties manage domain ownership, which can lead to censorship or seizure. DID allows users to directly control their identities, reducing reliance on centralized organizations.

Security model: DNS relies on centralized certificate authorities, while DID leverages blockchain’s inherent security to create a trustless environment. Identities can be verified securely and impersonation-resistant without intermediaries.

Cross-platform compatibility: DNS mainly maps domain names to IP addresses. DID offers interoperability across multiple blockchains and decentralized applications, enabling more flexible use of identities.

Conclusion: The Future of Digital Identity

Decentralized identity represents a significant leap forward in how people manage online recognition. Instead of relying on centralized organizations, DID empowers individuals to own and control their digital identities.

Solutions like ENS and .bit demonstrate that decentralized identity is not just a theoretical concept but a practical technology actively in use. As more people recognize the value of DID, we can expect to see new applications emerge — from personal finance management to official identity verification. DID will continue to evolve, providing users with greater autonomy and security in an increasingly complex digital world.