The XLS-40 amendment to the XRP Ledger, which introduces a new standard for decentralized identifiers (DIDs), went live on October 30. The amendment was approved by 28 out of 35 ratifiers (85.71%), and the amendment was activated yesterday.
Mayukha Vadhari, Senior Software Engineer at RippleX, Announce Activation via
XRP Ledger gets decentralized identifiers
DIDs are unique identifiers owned by the user and not controlled by any central authority. “DID is roughly equivalent to a fingerprint in the real world,” Vadaari explained. Everyone has one, and although it doesn’t do anything on its own, it is useful in other contexts. For example, it can connect to verifiable credentials (VCs) or other data that proves your identity without relying on a central authority.
These identifiers are designed to be “persistent, globally resolvable, cryptographically verifiable” and compatible with any ledger or distributed network, adhering to World Wide Web Consortium (W3C) specifications.
The XLS-40 DID specifications were developed by Aanchal Malhotra and Vadari. She explained in detail the implementation: “DID is represented on the chain via a series of bi-directional links (bi-directional indicators). The user creates a DID document and links to it in an on-chain DID object on XRPL. The DID document also points to the DID object on the chain, so there is no way for someone else to fake your identity. In other words, the document says your account is part of his identity, and the account says the document is his identity.
When users asked for clarification on the mechanics, one asked: “When and how to build?” “There is a new transaction called DIDSet,” Fadaari replied. This new type of transaction enables users to create their own DIDs on the XRP ledger, making it easier to create a DID and link it to an XRPL account.
In response to concerns about possible identity fraud, one user inquired, “Okay, so what’s to stop me from copying someone else’s document and assigning that to my new DID?” “Their document will not indicate who you are, so it will not be valid,” Fadaari explained. The two-way association between the DID document and the on-chain DID object ensures identity authenticity and integrity, preventing unauthorized duplication.
Another user, BitCrypto, asked a question about managing multiple identities: “What’s to stop someone with multiple accounts from creating a DID for each of them, making that person a different person every time they use one of those accounts?” Vadari acknowledged the possibility: “If you want to do it, that’s totally fine. Just like you have some social media accounts that aren’t connected to your real identity.
According to information received from xrpl.orgA decentralized identifier (DID) is a new type of identifier defined by the W3C that enables verifiable digital identities. DIDs are entirely under the control of the DID owner, independent of any central registry, identity provider, or certification authority.
The basic principles of DID include decentralization, verifiable credentials, and interoperability. Decentralization ensures that no central issuing agency has control over the DID, allowing the owner to update, resolve, or deactivate it independently. This also enhances availability, as DIDs are typically stored on the blockchain and are always available for verification.
Verifiable credentials (VCs) are critical, because while anyone can create a DID and potentially forge information, authenticity is established through a cryptographically secure and tamper-evident VC. In the DID ecosystem, there are three parties involved: the user (who controls the DID), the issuer (a trusted entity that verifies information offline and provides VC), and the verifier (who needs to confirm the user’s identity).
Interoperability means that DIDs are open to any solution that recognizes the W3C DID standard, enabling them to be used for authentication and establishing trust in various digital transactions and interactions.
In XRP Ledger, the implementation of DIDs complies with the requirements in the DID v1.0 specification. The process involves the XRPL account holder creating a DID that is controlled by their account. A DID is associated with a DID document as defined by the W3C specification. When a user submits their DID and VC to a validator for a digital assignment, the validator parses the DID into their document and uses the VC to validate it.
At press time, XRP was trading at $0.5181.
Featured image created with DALL.E, a chart from TradingView.com