XRP Ledger DID Amendment Goes Live: Why It’s A Big Deal

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As a seasoned crypto investor with over a decade of experience in the digital currency market, I find the recent activation of the XLS-40 amendment on the XRP Ledger to introduce Decentralized Identifiers (DIDs) intriguing. The fact that 85.71% of validators approved this amendment is a testament to its potential impact on the future of blockchain technology.

On October 30, the XLS-40 amendment, a new standard for Decentralized Identifiers (DIDs) on the XRP Ledger, was activated and brought into effect after being approved by 28 out of the 35 validators (representing 85.71% approval). The activation occurred yesterday.

On the platform of RippleX, Mayukha Vadari, a seasoned Software Engineer, declared via their social media account (previously known as Twitter) that the XRPL DID amendment has officially been activated. In simpler terms, Decentralized Identifiers (DIDs) within web3 can be somewhat perplexing when it comes to understanding how they function. Here’s a breakdown of XLS-40 and DIDs on the XRPL for your convenience!

XRP Ledger Gets Decentralized Identifiers

Decentralized Identifiers (DIDs) are personal identifiers that aren’t governed by any central power. Essentially, they function like unique fingerprints in the real world; everyone has one, and though it doesn’t perform actions independently, it becomes valuable when connected to Verifiable Credentials (VCs) or other data that verify your identity without requiring a centralized authority. In layman’s terms, Vadari described DIDs as identifiers similar to fingerprints, which can connect to information proving who you are, without needing a central control system.

These identifiers have been crafted to be persistent, easily resolvable worldwide, securely verifiable through cryptography, and compatible with any decentralized database or communication system. They strictly follow the guidelines set by the World Wide Web Consortium (W3C).

The XLS-40 DID specification was developed by Aanchal Malhotra and Vadari. She elaborated on the implementation: “A DID is represented on-chain via a series of two-way links (bidirectional pointers). The user creates a DID document and links to it in their on-chain DID object on the XRPL. The DID document also refers to the on-chain DID object, so there’s no way for someone else to forge your identity. In other words, the document says your account is part of its identity, and the account says that the document is its identity.”

When users inquired about the specifics, one asked, “How and when is this created?” To which Vadari replied, “There’s a novel transaction known as DIDSet. This new type of transaction empowers users to set up their Decentralized Identifiers (DIDs) on the XRP Ledger. By doing so, they can create a connection between a DID and an account on the XRP Public Ledger.

When a user raised questions about the possibility of forging identities by using someone else’s documents, Vadari explained, “In essence, what safeguards are in place to prevent me from attaching another person’s document to my new Digital Identity?” To which he responded, “The document won’t be linked to your identity, thus it won’t be considered valid.” The two-way connection between the DID document and the on-chain DID object maintains the authenticity and security of the identity by preventing unauthorized replication.

A user named BitCrypto asked about the feasibility of using a Decentralized Identifier (DID) for each separate account they own, effectively creating distinct identities for each use. Vadari acknowledged this as a viable option, likening it to having various social media accounts that may not be linked to one’s real-world identity.

As an analyst, I’ve learned that a Decentralized Identifier (DID), as defined by the World Wide Web Consortium (W3C), represents a novel type of identifier. This innovative system allows for self-sovereign, digital identities that can be verified. Unlike traditional identifiers, DIDs are entirely under the control of their owners, operating independently from any centralized registry, identity provider, or certificate authority.

A DID (Decentralized Identifier) operates based on three fundamental concepts: decentralization, verifiable credentials, and interoperability. Decentralization means that no single entity controls the issuance of a DID, giving its owner the autonomy to modify, resolve, or deactivate it without relying on any central authority. This attribute also boosts accessibility as DIDs are typically stored on blockchain technology, ensuring they can always be verified whenever needed.

Verifiable Credentials (VCs) play a significant role due to their ability to ensure credibility. Although anyone can generate a Decentralized Identifier (DID), the truthfulness of the information is upheld by a VC, which has strong cryptographic protection and is resistant to manipulation. In the DID network, there are three primary participants: the user (the owner of the DID), the issuer (a reliable entity that verifies data offline and distributes the VC), and the verifier (who checks the authenticity of the user’s information).

In simpler terms, interoperability implies that Digital Identifiers (DIDs) can work seamlessly with any system or solution that adheres to the World Wide Web Consortium’s (W3C) DID standard. This means they can be utilized for authenticating parties and building trust in numerous digital transactions and interactions.

On the XRP Ledger, the creation of Decentralized Identifiers (DIDs) adheres to the standards outlined in the DID v1.0 specification. This process begins when an account holder on the XRPL generates a DID that is managed by their account. The DID is linked to a DID document, as per W3C guidelines. When a user offers their DID and Verifiable Credential (VC) to a verifier for a digital task, the verifier retrieves the DID’s document and uses the VC to authenticate it.

At press time, XRP traded at $0.5181.

XRP Ledger DID Amendment Goes Live: Why It’s A Big Deal

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2024-10-31 20:12