Which of the following is a key difference between decentralized identity and traditional identity system?
Question: Which of the following is a key difference between decentralized identity and traditional identity system?
A key difference between decentralized identity and traditional identity systems is control over personal data. In traditional identity systems, personal information is stored and managed by centralized authorities such as governments, banks, or corporations, making it vulnerable to data breaches and misuse. In contrast, decentralized identity allows individuals to have full control over their own identity data, using technologies like blockchain to securely store and share credentials without relying on a central entity2. This enhances privacy and security while reducing the risks associated with centralized databases.
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