The XRP Ledger has recently embraced a transformative development with the activation of the XLS-40 amendment, which introduces a novel standard for Decentralized Identifiers (DIDs). This amendment, which received approval from 28 out of 35 validators, translating to an 85.71% consensus, went live on October 30, marking a significant milestone in the realm of blockchain-based identity management.
Understanding the Role of DIDs on the XRP Ledger
Decentralized Identifiers (DIDs) are unique, user-owned identifiers that exist without the oversight of any central authority. Mayukha Vadari, a Senior Software Engineer at RippleX, elucidates that a DID is akin to a digital fingerprint. While it does not perform any function on its own, it becomes instrumental when linked to Verifiable Credentials (VCs) or other data sets that authenticate identity without reliance on a centralized entity.
The Technical Framework of DIDs
DIDs are engineered to be persistent, globally resolvable, and cryptographically verifiable. Their design aligns with the World Wide Web Consortium (W3C) specifications, ensuring compatibility across various distributed ledgers or networks. The development of the XLS-40 DID specification was spearheaded by Aanchal Malhotra and Mayukha Vadari, who meticulously crafted a system where a DID is represented on-chain through bidirectional pointers. This complex setup involves creating a DID document that is linked to an on-chain DID object on the XRPL, ensuring that identity forging is virtually impossible.
New Transaction Type: DIDSet
To facilitate the creation and association of a DID with an XRPL account, a new transaction type called DIDSet has been introduced. This innovation allows users to establish their DIDs seamlessly on the XRP Ledger. In response to queries about identity forging, Vadari assured that any attempt to duplicate someone else’s DID document would fail due to the bidirectional linking process that validates the identity’s authenticity.
Addressing Identity Management and Security Concerns
The introduction of DIDs also raises questions about managing multiple identities. Users can create distinct DIDs for separate accounts, akin to managing various social media profiles. This flexibility allows for diverse identity expressions without compromising the security and integrity of the digital identity ecosystem.
Key Principles of Decentralized Identifiers
Decentralization is a cornerstone of DIDs, ensuring that no central agency holds control over the identifier. This autonomy allows the DID owner to independently update, resolve, or deactivate their identifier, thereby enhancing its availability and reliability. Additionally, Verifiable Credentials play a crucial role in establishing the authenticity of a DID, as they are cryptographically secure and resistant to tampering.
The Interoperability of DIDs
Interoperability is another vital aspect, enabling DIDs to integrate seamlessly with any solution that adheres to the W3C DID standard. This ensures that DIDs can be utilized to authenticate and build trust in a variety of digital transactions and interactions.
Practical Implementation on the XRP Ledger
On the XRP Ledger, the implementation of DIDs adheres to the DID v1.0 specification. Users generate a DID that is controlled by their XRPL account and associated with a DID document as per W3C guidelines. This setup allows verifiers to resolve the DID and use the VC to confirm its authenticity during digital engagements.
At the time of this writing, XRP is trading at $0.5181, maintaining a position above the 200-week EMA.
