The XLS-40 amendment to the XRP Ledger, which introduces a new standard for Decentralized Identifiers (DIDs), was implemented on October 30. Approved by 28 out of 35 validators (85.71%), the amendment went live yesterday.
Mayukha Vadari, Senior Software Engineer at RippleX, announced the launch via X (formerly Twitter), saying: “The XRPL patch DID go live today! DIDs (Defined Identifiers) on the web3 can be very confusing, when you look at how they work. Here is the XLS-40 dictionary and DID in XRPL!”
XRP Ledger Gets Default Identifiers
DIDs are unique, user-owned identifiers that cannot be controlled by any central authority. Vadari explained, “DID is almost like a fingerprint in the real world. Everyone has one, and while it doesn’t do anything by itself, it’s useful in some situations. For example, it can be linked to Verified Vouchers (VCs) or other data that proves your identity without relying on a central authority.
These identifiers are designed to be “persistent, globally solvable, anonymously authenticated,” and compatible with any distributed directory or network, complying with World Wide Web Consortium (W3C) specifications.
The XLS-40 DID specification was developed by Aanchal Malhotra and Vadari. He elaborated on the usage: “DID is represented in the chain by a series of two-way links (bidirectional pointers). The user creates a DID document and links it to their DID object on-chain in XRPL. The DID document also refers to the DID object on the chain, so there is no way for someone else to identify you. In other words, the document says your account is part of its identity, and the account says that document is its identity.”
When users wanted clarification on the mechanism, one asked, “When and how does it create?” Vadari replied, “There is a new function called DIDSet.” This new type of functionality enables users to establish their DIDs in the XRP Ledger, facilitating the creation and association of a DID with an XRPL account.
Citing concerns about potential identity fraud, a user asked, “Okay, so what’s stopping me from copying someone else’s document and assigning that to my new DID?” Vadari clarified, “Their document will not refer back to your identity, so it will not be valid.” The double link between the DID document and the DID object on the chain ensures the authenticity and integrity of the identity, preventing unauthorized duplication.
Another user, BitCrypto, asked a question about managing multiple identities: “What prevents someone with multiple accounts from creating their own DID for each of them, making that person a different person each time they use one of those accounts?” Vadari acknowledged the possibility: “If you want to do that, fine. Since you may have social media accounts that are not connected to your real world identity. “
According to information from xrpl.org, a Decentralized Identifier (DID) is a new type of identifier defined by the W3C that allows for verifiable, digital identities. DIDs are fully under the control of the DID owner, independent of any central registry, identity provider, or certificate authority.
Key goals of DID include scalability, verifiable credentials, and interoperability. Decentralization ensures that no central issuing agency controls the DID, allowing the owner to review, resolve, or deactivate it independently. This also improves availability, as DIDs are usually stored on the blockchain and are always available for verification.
Verified Credentials (VCs) are important because, although anyone can create a DID and be able to falsify information, authenticity is established with a VC that is both encrypted and transparent. 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 verify the user’s identity).
Interoperability means that DIDs are open to any solution that recognizes the W3C DID standard, enabling them to be used to verify and establish trust in a variety of digital transactions and interactions.
In the XRP Ledger, the use of DIDs conforms to the requirements in the DID v1.0 specification. The process involves an XRPL account holder generating 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 provides their DID and VC to a digital transaction verifier, the verifier resolves the DID in its document and uses the VC to verify its authenticity.
At press time, XRP traded at $0.5181.
The featured image was created with DALL.E, a chart from TradingView.com
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