Web3 digital identity is here to stay, but it has a long way to go

cointelegraph.com:

In today’s digital age, most consumers have some form of digital identity. Whether it’s a social media profile, gamer tag or online banking credentials, digital identities have become an integral part of people’s daily lives.

However, the ownership of these digital identities is often unclear, leading to a growing concern among users. This has given rise to Web3-based digital identity solutions among crypto enthusiasts and blockchain aficionados alike as they seek greater control over their personal data, finances and privacy.

Digital identity in Web3 refers to a unique online identity that the individual user fully controls. Unlike traditional web identities — which are typically owned and managed by third-party platforms — Web3 digital identities are self-sovereign, allowing users greater control over their personal information and privacy.

These digital identities are built on decentralized identity (DID) systems, which use blockchain technology to provide secure and tamper-evident storage of identity-related data. This, in turn, enables users to create, manage and authenticate their identities across multiple Web3 applications and services without relying on a central authority.

However, the current state of Web3 digital identity solutions is often complex, fragmented and challenging for users to manage. In response, companies such as Unstoppable Domains and Ethereum Naming Service (ENS) have been established to build user-friendly solutions to simplify digital identity management. The emergence of Web3 digital identity solutions has also led to attempts to aggregate different solutions. Space ID is a leading example, offering a unified interface for managing multiple digital identities across various blockchains.

Althoug