Demand for DID Data

As decentralized applications rapidly emerge, the demand for DID data continues to grow. In the early stage, we expected strong demand for DID services from decentralized credit lending, decentralized autonomous organizations, and decentralized personalized recommendation systems. In order to stay decentralized and avoid a single point of failure, dApps ought to decentralize their sources when acquiring DID data, However, there is no ready-made decentralized identity data source in the current network.

A potential solution is to create a standardized common language. For example, Presentation Exchange is a protocol that provides standardized data formats for different systems to exchange credentials. As they proposed, the protocol helps create a “common language” for different identity systems to exchange identity proofs so that a third-party will be informed how to write requirements for proofs in their application, and the proof-holder will know how to submit the proof. Such a protocol can significantly reduce data friction between systems and enhance consistency. But it takes long for a computer language to become widely adopted.