Decentralized Identifiers on the Blockchain: Which DID Projects Are Leading in 2024

In recent years, decentralized identification has become one of the key infrastructures of Web3. The Worldcoin project, led by Sam Altman, has significantly increased investor and developer attention to this area. The launch of the WLD token has sparked a wave of interest in blockchain-based solutions for managing digital identities.

Why Decentralized Identifiers Are Transforming the Digital World

Traditional identity management systems are concentrated in the hands of large corporations and government institutions. In the Web3 ecosystem, the situation is changing dramatically — users gain sovereignty over their own data. This means you are no longer dependent on third-party solutions and have full control over who accesses your information.

Decentralized identifiers (DID) use cryptographic mechanisms and blockchain technologies to create an authentic and secure digital identity. This solution is critical for the security of DeFi applications, NFT marketplaces, and other services where reliable verification without revealing personal data is required.

DID Technology: How It Works

At the core of DID is a cryptographic key pair — a public and a private key. The public key serves as your open identifier in the network, while the private key remains under your full control and is used to confirm operations. This architecture guarantees that only you can manage your digital identity, even when interacting with dozens of different platforms.

Blockchain acts as an immutable registry recording all identification operations. This approach eliminates a single point of failure and makes the system resistant to fraud and data leaks, which are typical for centralized databases.

The Role of Decentralized Identification in the Cryptocurrency Environment

DID addresses the critical trust issue in the crypto market. Every transaction in DeFi, every interaction in decentralized applications can be linked to a verified identity without revealing confidential information. This simultaneously enhances ecosystem security and reduces fraud risk.

For DeFi platforms, DID becomes an integral component of infrastructure. They enable the implementation of reliable user authentication methods, which is especially important for protocols working with smart contracts and providing financial services without traditional intermediaries.

Main Advantages of Decentralized Identifiers

Full control over personal data. You decide what information to disclose and to whom. This is a fundamental difference from Web2 systems, where your data is controlled by platforms and advertising networks.

Multi-layered privacy protection. The absence of a central storage means there is no single target for cybercriminals. Cryptographic methods provide an additional layer of protection for each operation.

Cross-platform unification. One DID can be used across multiple services without re-verification. This significantly simplifies the user experience.

Cost efficiency. Eliminating intermediaries and automating verification processes reduce operational costs, which is especially important for industries with high verification frequency.

Leading DID Projects in 2024

Worldcoin: Biometry Meets Blockchain

Worldcoin uses an innovative approach — biometric scanning of the iris to create a unique World ID. This solution guarantees the principle “one person — one account” and helps combat bots and falsifications online.

Current WLD metrics:

• Price: $0.50
• Daily change: +0.40%
• Market cap: $1.28B
• 24h volume: $1.45M

Integration of World ID with Ethereum, Optimism, and Polygon expands usability beyond a single network. Tools for Humanity (the developer team) introduced World Chain — a Layer-2 solution based on Ethereum that prioritizes interaction with real people over automated processes.

Strengths: focus on inclusivity, especially for underserved populations; innovative use of biometrics; partnership potential with major financial services.

Challenges: privacy concerns regarding biometric data; complexity of global deployment across different jurisdictions.

Lifeform: Hyper-Realistic Avatars and Decentralization

Lifeform positions itself as a leader in visual DID solutions. The company has developed technology for creating hyper-realistic 3D avatars that serve as users’ digital identities in the metaverse and Web2 social networks.

The project has attracted significant funding: $15 million in initial rounds, $100 million in Series A, and recently completed Series B with an evaluation of $300 million. Over 3 million unique addresses already use the platform, indicating growing adoption.

Key distinction: integration of hyper-realistic visual elements with decentralized identity infrastructure allows users to manage their Web3 identity interactively and securely.

Advantages: modern cryptography and multi-factor authentication; global access without geographic restrictions; streamlined verification processes.

Potential risks: vulnerability to advanced cyberattacks; requires specialized knowledge for implementation; cross-platform compatibility challenges.

Polygon ID: Privacy via Zero-Knowledge Proofs

Polygon ID employs an innovative cryptographic mechanism — (Zero-Knowledge Proofs). This allows users to verify their identity and credentials without revealing confidential information.

The platform is designed for dApp developers seeking easy verification integration. Users control their credentials on their own devices, ensuring full privacy and control.

In February 2024, Human Institute announced a partnership with Polygon Labs and Animoca Brands to launch Humanity Protocol — a system using palm recognition for secure Web3 identification. In April of the same year, Polygon launched its own ZK-based identity protocol.

Distinctive feature: use of zero-knowledge proofs creates an ideal balance between verification and privacy, aligning with Web3 philosophy.

Pros: high privacy level; scalability; compatibility with the Ethereum ecosystem.

Cons: relatively new product; requires time for integration into existing systems.

Ethereum Name Service: Human-Readable Addresses for Web3

ENS addresses one of the main UX issues in blockchain — the need to remember and input long hexadecimal addresses. The platform allows registering understandable names like “alice.eth,” linked to your Ethereum address.

In February 2024, ENS partnered with GoDaddy, enabling ENS domains to be connected to traditional web domains. This opens access for users without deep technical knowledge. Since April 2024, the platform also supports .box domains — the first ICANN-approved TLD functioning on-chain.

Uniqueness: deep integration with the Ethereum ecosystem; ease of use; recognition by the crypto community.

Strengths: convenience; broad adoption; universal utility for all network users.

Weaknesses: scalability limited by the main blockchain’s capabilities; may face network congestion issues.

Space ID: Inter-Chain Namespace

Space ID offers cross-chain domain registration solutions across various blockchains. This allows users to create a unified identifier functioning on Ethereum, BNB Chain, Arbitrum, and other networks.

The project demonstrates a universal approach to DID, supporting a wide range of applications — from crypto asset trading to credit protocols and NFT platforms.

Key feature: cross-network functionality enabling a single digital identity regardless of the chosen chain.

Advantages: improved interoperability between blockchains; convenience for multi-chain users; applicability in various DeFi scenarios.

Challenges: competition from other domain name services; limited recognition outside the crypto community.

Galxe: Decentralized Verification Infrastructure

Galxe uses user activity data to create a decentralized network of verification credentials that serve as the foundation of Web3 infrastructure. The platform allows organizations and applications to build custom reputation and access control systems.

Galxe’s architecture is open and extensible, making it applicable in DeFi, DAO management systems (, and other Web3 applications.

Unique proposition: focus on decentralized credentials that underpin reputation systems and access control.

Pros: innovative use of on-chain data; potential for numerous applications.

Cons: early development stage; complexity in widespread understanding and adoption.

Main Challenges for DID Development

Technical migration complexity. Transitioning from centralized to decentralized systems requires rethinking entire architectures. Users and service providers need retraining and adaptation to new identity management paradigms.

Technical obstacles. DID demands deep understanding of blockchain and cryptography. Ensuring compatibility across different platforms is a complex coordination task requiring concerted efforts from multiple participants.

Private key management. While DID enhances security, it introduces new responsibilities — users must securely store private keys. Losing a key means losing access to the identity with no recovery options.

Legal regulation. The diversity of data protection laws across countries creates obstacles. Balancing decentralization with regulatory compliance remains a constant challenge for DID projects.

Where the Decentralized Identity Industry Is Heading

Mass adoption in fintech. As awareness of DID grows, their integration into DeFi protocols, NFT marketplaces, and management systems is expected. Decentralized identification will become a standard, improving user experience and security.

Advanced privacy mechanisms. Rising concerns about data privacy will drive innovations in ZK proofs, biometric solutions, and other cryptographic tools.

Cross-chain standardization. DIDs will evolve toward enhanced interoperability between blockchains, allowing users to use a single identifier across different networks.

Regulatory compliance (KYC/AML). Under tightening regulations, DIDs could become tools for fulfilling Know Your Customer and anti-money laundering requirements while maintaining privacy.

Expansion beyond crypto. DIDs will be applied in healthcare, government, education, and IoT/AI systems, offering a universal solution for secure identification.

Final Thoughts

Decentralized identifiers open a fundamentally new approach to managing digital identities. Instead of trusting corporations and governments, users gain tools for full sovereignty over their data. This is not just a technological shift — it’s a reorientation of the entire infrastructure toward decentralization and privacy.

As DID projects like Worldcoin, Lifeform, and Polygon ID expand the boundaries of possibility, we see the formation of a new standard of security and trust in the digital environment. This transformation not only improves how we interact with technology but also symbolizes a profound shift in societal attitudes toward control over personal data.