Structural Problems of Web2 Identity Systems
In the Web2 era, identity is almost entirely dependent on platforms. Whether social media, e-commerce, finance, or content services, users must rely on platform-issued accounts to prove who they are. While this model excels in scalability and user experience, it hides fundamental structural issues.
First, control over identity does not belong to users but to platforms. Although users generate vast amounts of data, they have little say over how that data is stored, used, or transferred. If an account is suspended, a platform shuts down, or policies change, the identity—and the value, reputation, or assets attached to it—can disappear instantly.
Second, the concentration of identity data creates serious security and privacy risks. Large volumes of personal information are stored in centralized databases, making them prime targets for breaches and misuse. Many high-profile privacy scandals in recent years stem directly from this structural weakness.
From a structural perspective, Web2 identity systems exhibit the following characteristics and issues:
- Identities are issued and controlled by platforms, leaving users with limited autonomy
- Data is centrally stored, making it vulnerable to attacks and abuse
- Identities are not interoperable across platforms, creating identity silos
- Platforms retain ultimate authority, while users lack meaningful recourse or portability
These problems are not flaws of individual platforms, but systemic outcomes of centralized identity models.
What Is Decentralized Identity (DID)?
Decentralized Identity (DID) seeks to fundamentally redefine who controls identity. Unlike traditional account systems, DID does not rely on a single platform or institution for issuance. Instead, it is generated and verified through blockchains or decentralized networks.
In a DID system, the core of identity is no longer an account, but a set of cryptographic credentials fully controlled by the user. Users prove the authenticity of their identity through private keys, without exposing complete personal information to third parties. Identity shifts from being platform-recognized to self-verified.
Functionally, DID has several key characteristics:
- Identity identifiers are generated by users, not assigned by platforms
- Identity data is managed and authorized by users themselves
- Verification does not require centralized intermediaries
- Identities are reusable across applications and ecosystems
DID does not imply complete anonymity. Instead, it enables verifiable and selectively disclosed identity authentication under strong privacy protection, providing a more flexible and resilient trust foundation for digital society.
The Emergence of Self-Sovereign Identity
Building on the technical foundation of DID, the concept of Self-Sovereign Identity (SSI) gradually took shape. SSI does not refer to a specific technology, but rather represents a fundamental shift in how identity ownership and governance are understood.
At its core, SSI promotes the idea that individuals should manage their identities in the same way they manage assets. Identity no longer belongs to platforms, corporations, or state systems. Instead, it is held by individuals over the long term, usable across contexts, and selectively authorized when necessary. Under this model, identity becomes a persistent digital asset rather than a temporary login credential.
In a self-sovereign identity system:
- Users have the right to create, use, and revoke their identities
- Identities can exist long-term across platforms and national boundaries
- Third parties may verify specific information only with explicit authorization
- The value of an identity accumulates over time through user behavior and reputation
This shift means that identity evolves from a mere access tool into a carrier of trust. When identity can represent credibility, qualifications, relationships, and historical behavior, Web3 gains the real potential to reshape finance, governance, and social collaboration.
