decentralized identity

Giving identity holders control of their own identity

Traditional identity systems rely on centralized intermediaries and expose user data to risk. With decentralized identity on Hedera, users control their credentials, verifiers confirm authenticity without intermediaries, and personal data remains private—anchored by Hedera’s neutral, verifiable trust layer.
Decentralized Identity

Decentralized identity features and benefits

Decentralized identifiers (DIDs)

Unique, cryptographically secure identifiers not tied to a central registry. No single point of failure, and identities can persist across borders, organizations, and platforms without custom integrations.

Verifiable credentials (VCs)

Digitally signed attestations that can verify anywhere. Authenticity and revocation are checked cryptographically, with no need to contact the issuer.

Digital identity documents

Metadata, like public keys, can be linked to a DID and stored on a distributed network. Enables trust and verification between entities, while supporting compliance needs such as GDPR. Minimizes data retention and ensures user consent in data sharing.

hedera consensus service

Decentralized identifiers and managed credentials

Hedera Consensus Service enables tamper-proof event logging for identity interactions. It follows W3C DID and verifiable credential standards, ensuring secure, private and standards-based credential management.

hedera token service

Turn credentials into user-controlled identity tokens

Built on the Hedera Token Service, identity tokens transform credentials into verifiable, user-controlled digital assets. Combining the assurance of institutional verification with the flexibility of Hedera, they enable tamper-proof authentication, programmable access, and lifecycle control—delivering scalable, low-cost identity solutions for the decentralized world.

Decentralized Identifiers

Why Hedera for decentralized identity?

Hedera offers the ideal trust layer for secure, scalable identity systems—anchoring verifiable credentials with immutable trust and low-cost scalability.

Hedera Decentralized Identity

how it works

Hedera DID SDK

The Hedera DID SDK for Java makes it easy for users to publish and resolve DID documents, issue verifiable credentials, and manage their validity status.

Credentials issued

Issuer signs a set of identity attributes for a user and gives to user for storage.

Issuance recorded

Metadata for credential recorded via an HCS message.

Credential used

User presents credential as part of authentication process at some application/resource.

Metadata retrieved

Relying party retrieves timestamped metadata in order to validate credential.

Credential revoked

Relying party retrieves timestamped metadata in order to validate credential.

Credential used

The next time the credential is presented, authentication fails.

Hedera DID SDK

industry-wide applications

Decentralized identity use cases across industries

Government services

Governments are exploring self-sovereign identity (SSI) models, where the citizen controls their identity data in a digital wallet. DLT acts as a verifiable registry that stores cryptographic proofs of identity credentials, not the personal data itself. Examples include digital passports and national ID systems.

Financial services

Financial institutions can share verified identity attestations, such as KYC with other entities via an immutable ledger. Smart contracts can also automate AML compliance by verifying whether a digital ID meets regulatory criteria.

Healthcare

Each patient holds a decentralized identifier (DID) and a verifiable credential proving their health records. Hospitals and labs issue signed credentials, which patients can store in their wallet. An example includes vaccination certificates.

Education

Universities can issue tamper-proof digital diplomas or certifications as verifiable credentials anchored on a blockchain. Employers or other institutions can instantly verify authenticity without contacting the issuer, while the DLT records only the credential’s cryptographic proof, ensuring privacy.

Trusted partners within the ecosystem

Leading custodians in the Hedera ecosystem enable secure key management, identity verification, and asset custody for enterprises and institutions.

Founding members of the DeRec Alliance

Hedera is a founding member of the the Decentralized Recovery (DeRec) Alliance, alongside Algorand Foundation, Hashgraph, Ripple, XRPL Labs, and Input | Output (IOHK).

DeRec provides an open protocol for decentralized recovery of keys, credentials, and identity data, ensuring users can retain access even if devices or secrets are lost.

This is critical for digital identity because it adds a safety net to DID/VC systems without relying on centralized recovery methods. Overall, it boosts trust, resilience, and user confidence in identity applications.

Founding Members of the DeRed Alliance Logos

If we want our industry to reach the other 7 billion people, we’ve got to provide a safety net, especially as we go to things like identity where it really is your whole life that is controlled by it. The real danger is that we end up with more than one protocol. That’s why it was so important that the DeRec Alliance is not a Hedera-only initiative– it’s multi-chain. We need to be working together as an industry.

Dr. Leemon Baird

Co-founder

Dr Leemon Baird

Discover why Hedera is the trust layer for decentralized identity