XRPL’s New ID Tech Looks to Put You in Control of Your Data
- XRPL has introduced self-sovereign IDs with the Decentralized Identifier upgrade.
- Users have the potential to gain control over their online identity.
- DID has positioned XRPL as a key player in secure digital identity for Web3.
The XRP Ledger (XRPL) just launched a breakthrough update that could change how we manage our digital identities. Called the Decentralized Identifier (DID) amendment, this feature lets users control their online identities without needing to rely on central authorities like banks, governments, or social media companies.
Instead of companies holding your data, the XRPL puts it back in your hands, offering a new approach to digital identity that emphasizes security and privacy. This upgrade, backed by 30 out of 35 validators, introduces what’s known as “self-sovereign identity.”
How Does DID Work on XRPL?
Users on the XRPL can create unique digital identifiers that act like online fingerprints—private, secure, and independently verifiable. RippleX developer Mayukha Vadari explains these identifiers allow users to own their data and interact with the blockchain while cryptographic security prevents identity theft.
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This isn’t just an update; it’s a fundamental shift in how blockchain can keep users safe while empowering them to manage their own information. At its core, a Decentralized Identifier (DID) is a type of digital ID that doesn’t rely on any central authority. Imagine having a digital “fingerprint” that proves who you are online but without the risk of a third party tampering with it.
This DID is tied to a digital document on the XRPL, holding encrypted keys and verification details. With this setup, each user’s identity is secure, private, and uniquely theirs. Vadari notes that, much like a physical fingerprint, the DID can verify identity without revealing sensitive information.
Because this system aligns with the World Wide Web Consortium (W3C) standards, it also works across multiple platforms, opening doors for new types of digital identity applications. Since the blockchain stores the DID, it becomes tamper-proof and globally recognized, setting a new standard for secure digital identity.
How XRPL’s Digital IDs Bring Privacy Back to Users
To make DIDs useful, XRPL pairs them with Verifiable Credentials (VCs). Think of VCs as digital badges that prove your identity or credentials—like a virtual ID card—but with extra privacy. These credentials can prove your identity for online applications without disclosing personal information, like your address or bank details.
VCs can make logging into services, verifying age, or accessing finance applications safer and more private. Vadari believes VCs could be used to prevent issues like identity fraud or election tampering by creating secure, tamper-proof methods for verifying personal data.
Because DIDs and VCs work together, they ensure that users, not third parties, control their data. On XRPL, this combination paves the way for privacy-focused applications, such as DeFi projects or secure digital voting.
On the Flipside
- While promising, XRPL’s DID feature is still early, and adoption remains uncertain.
- Other blockchains like Cardano and Ethereum are also developing similar DID solutions.
- Despite the update, XRPL’s reliance on XRP raises questions about its full decentralization.
Why This Matters
The DID amendment on the XRP Ledger represents a big step toward user-controlled digital identity, helping users control their data in the Web3 space. By combining DIDs and VCs, XRPL makes online interactions more secure and user-friendly, addressing the growing need for privacy in digital spaces.
To learn more about the implications of Ripple’s legal victory against the SEC, the launch of their RLUSD stablecoin, and the development of the XRP Ledger, read here:
Ripple’s President Spills Secrets on SEC Win, RLUSD, and XRPL
To learn more about Bitstamp’s decision to use Ripple’s XRPL to power its new derivatives exchange and the impact this will have on the crypto market, read here:
Ripple’s XRPL Set to Boost Bitstamp’s New Derivatives Exchange
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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