A decentralized identity system gives individuals control over digital identity credentials and lets them disclose only the information required for a transaction. It fits privacy-centric approaches that seek useful personalization without treating personal data as universally shareable. section 2.4
Its strategic value rests on three linked ideas:
- Individual control: people manage their own credentials rather than relying entirely on centralized identity holders. section 2.4
- Selective disclosure: people share necessary identity attributes without exposing their complete identity record. section 2.4
- Privacy-aware use: organizations can consider identity frameworks alongside data clean rooms and privacy-enhancing technologies. section 2.4
