DID Methods: Understanding Decentralized Identity Techniques

When working with DID methods, a set of standards that let users create and manage decentralized identifiers for digital identity. Also known as Decentralized Identifier methods, it enables individuals and organizations to own their data without relying on a central authority.

One of the building blocks of Decentralized Identifiers, unique, permanent references stored on a blockchain or other distributed ledger is the ability to resolve an identifier to a set of public keys and service endpoints. This resolves the classic problem of “who owns this data?” by letting the identifier itself act as a trust anchor. In practice, a DID can point to a public key on Ethereum, a DID document on IPFS, or a record in a sovereign network like Sovrin. The method you choose influences the performance, privacy, and governance of your identity system, so picking the right DID methods early on saves you a lot of re‑engineering later.

Why DID methods matter for modern digital trust

Another essential piece is Verifiable Credentials, tamper‑evident digital attestations that bind claims to a DID holder. When a credential issuer signs a claim with their private key, anyone can verify its authenticity against the issuer’s DID document. This creates a portable proof that works across borders, platforms, and services. Pairing DIDs with Verifiable Credentials powers use cases like border‑free travel, credit scoring without a centralized bureau, and secure health records that patients can share on demand.

Both concepts feed into the broader vision of Self‑sovereign identity, a model where individuals control every aspect of their digital identity. In a self‑sovereign setup, the user stores their DID and credentials in a wallet they own, decides which claims to present, and can revoke or update them at will. The underlying DID method determines how easily a wallet can retrieve the DID document, how resistant the system is to censorship, and what fees are involved when writing updates to the ledger. Platforms like Hyperledger Indy, Ethereum’s ERC‑1056, and emerging DID‑method specifications each bring trade‑offs in scalability, privacy, and developer tooling.

Beyond the core standards, the ecosystem includes blockchain platforms, DID registries, and open‑source libraries that make implementation straightforward. For example, the Ethereum DID method leverages smart contracts to store DID documents, while the Bitcoin DID method encodes data in OP_RETURN fields for low‑cost anchoring. Emerging ecosystems such as Polygon, Solana, and Polkadot are also adding native support, giving developers flexibility to choose a network that matches their performance and cost requirements. As more governments and enterprises adopt these standards, the range of practical applications keeps expanding—from supply‑chain traceability to education credentials.

Below you’ll find a curated collection of articles that dive deeper into each of these topics. Whether you’re a developer building a wallet, a policy maker assessing regulatory impact, or just curious about how decentralized identity works, the posts ahead will give you concrete examples, step‑by‑step guides, and real‑world case studies to help you put DID methods into practice.