DIDs in 2024: Which Identity Projects in Web3 Really Matter?

Web3 technology has brought decentralized identities into the spotlight of blockchain discussions. When Worldcoin (WLD) gained momentum in 2023, it was not just a passing novelty—it marked the industry’s awakening to the true potential of DIDs. Today, numerous projects compete to define how you will control your digital identity in the future.

Why Decentralized Identities Are in the Spotlight

In web3, a DID represents more than a simple identifier. It is a paradigm shift: you move from being a service consumer to becoming the true owner of your data. While traditional systems hand over your profile to third parties (social networks, banks), decentralized identities put you in control.

This transformation matters because digital transactions are growing exponentially. The need to verify who you are without trusting a central authority has become urgent. A DID functions as your passport in web3—traceable, secure, and entirely yours.

The Mechanics Behind DIDs

Blockchain acts as the foundation of DIDs. Each decentralized identity begins with a cryptographic pair: a public key (which you share) and a private key (kept like gold). This cryptographic structure ensures that only you can access your data, even when navigating multiple applications.

The beauty of this? There is no central point of failure. Your data does not sleep on a vulnerable server; it exists distributed and protected by blockchain logic.

The Impact of DIDs on the Crypto Ecosystem

Decentralized identities drastically increase trust in transactions. In DeFi, where smart contracts automate asset movements, knowing that each participant has been verified (without revealing personal data) transforms protocol security.

Fraud decreases. Scams become more difficult. Operational risk drops. That’s why serious DeFi projects are beginning to adopt DIDs as a layer of protection.

The Real Benefits of Adopting a DID

Full Ownership of Your Data: You stop being someone whose data is exploited. With a DID, you decide who sees what and when.

Security Without Intermediaries: Eliminating third parties reduces vulnerabilities. Without centralized servers, there’s nothing for hackers to invade.

Portability Across Platforms: Use the same DID across multiple web3 services without repeated tedious verifications.

Cost Savings: Fewer intermediaries and manual processes = lower operational expenses and reduced fees.

The Five DID Projects Defining 2024

Worldcoin: Biometrics as Foundation

Worldcoin brought innovation by using biometric data (iris scanning) to create a unique DID. The idea: combat fraud by linking an identity to a real person, once. The WLD token is distributed based on this verification.

The World Chain, an Ethereum layer-2 network of Worldcoin, aims to prioritize human engagement over blind automation. Partnerships under discussion with PayPal and OpenAI expand its reach.

Strength: Inclusive approach for unbanked populations. Clear ambition to connect digital identity with financial access.

Challenge: Legitimate concerns about biometric data collection and privacy.

Lifeform: Avatars as Identity

Lifeform created a visual approach: hyper-realistic 3D avatars function as your web3 identity. With an evaluation of $300 millions after a Series B round led by IDG Capital, it supports 3 million unique addresses.

Its differentiator? Integrating these avatars into Web2 social networks, creating a bridge between worlds. You manage your identity in an innovative and interactive way.

Advantages: Intuitive experience, strong cryptographic security, optimized verification.

Limitations: Requires technical knowledge for implementation; vulnerable to new types of cyberattacks.

Polygon ID: Absolute Privacy via ZK Proofs

Polygon ID uses zero-knowledge proofs (ZKPs) for a DID that does not sacrifice privacy. You verify your identity without exposing sensitive data publicly—a significant advancement.

In February 2024, Polygon Labs, The Human Institute, and Animoca Brands launched the Humanity Protocol with palm recognition. In April, the network itself launched a ZKP-based ID protocol.

Strength: Radical privacy while maintaining verifiability.

Weakness: Relatively new technology; adoption still limited.

Ethereum Name Service: Readable Names Instead of Addresses

ENS radically simplified web3 by allowing names like ‘alice.eth’ instead of confusing hexadecimals. In February 2024, the partnership with GoDaddy connected ENS names to traditional web domains. In April, it integrated .box domains, approved by ICANN.

It’s basic but transformative. ENS made web3 more human.

Pros: Ease of use, mass adoption, versatile utility.

Limitations: Focused mainly on the Ethereum ecosystem; scalability bottlenecks possible.

Space ID and Galxe: Expanding the Universe

Space ID offers a universal namespace for different blockchains. Register an identity once, use it across various networks. Cross-chain capability is its key feature.

Galxe goes further: it uses credential data to build a decentralized reputation network. Applications range from access control to DeFi reputation systems.

Space ID—Strength: Interoperability. Space ID—Weakness: Competition from other naming services.

Galxe—Strength: Innovative credential model. Galxe—Weakness: Still in early development stages.

The Obstacles That Remain

It’s not all smooth sailing. Decentralized identities still face:

Slow Adoption: Users and companies hesitate to abandon familiar systems.

Technical Complexity: Blockchain and cryptography scare beginners. Interoperability between networks remains a puzzle.

Personal Security: Losing your private key means losing your identity. There’s no “forgot password.”

Legal Compliance: Each country has different rules about data. Balancing decentralization with regulation is political acrobatics.

Where Are DIDs Heading?

Explosive Adoption in DeFi: As they grow, DIDs will naturally integrate into NFT marketplaces, DAOs, and decentralized finance.

Enhanced Privacy: Zero-knowledge proofs and biometric systems will evolve to be more robust and accessible.

Cross-Chain Becomes Normal: Possessing a consistent identity across multiple blockchains will cease to be a dream.

Meeting Regulations Without Sacrificing Privacy: DIDs will become tools for KYC and AML in web3, serving regulators and users simultaneously.

Beyond Crypto: IoT, AI, healthcare, and e-governance will start adopting DIDs as a standard for secure verification.

The Future Is Your Control

Decentralized identities are not just technology—they are a philosophy. They embody the belief that you should own and control your digital identity. The projects mentioned here are shaping how this will happen in web3.

As the technology matures, control over your data will shift from a promise of web3 to a tangible reality. The question is no longer “if” DIDs will become important, but “when” you will adopt one.