Microsoft Announces Blockchain-Based Decentralized Identification System

Following a collaboration with the Decentralized Identity Foundation (DIF), tech giant Microsoft has revealed plans to utilize blockchain technology to solve some of the challenges faced in managing identities and personal data digitally, including users’ concerns on privacy and security.

In today’s post, entitled Decentralized Digital Identities and Blockchain – The Future as We See It, Microsoft announced its embrace of blockchain-based technology, such as those that underpin Bitcoin and Ethereum, for use in decentralized IDs (DIDs) through the Microsoft Authenticator app.

Unlike traditional forms of identification used today, a decentralized identity system is not controlled by any single, centralized institution such as a government or tech company. The idea is that DIDs remove the possibility of censorship and give an individual full control over their identity and reputation. After looking at various types of decentralized identity systems, Microsoft turned to public blockchains due to their ability to enable privacy, self-ownership, and permission-less access.