In this episode of Blockchain: Beyond the Hype, we take a hard look at digital identity: who controls it, how it's evolving, and whether full decentralisation is even possible.

As AI reshapes online interactions, the need for secure, verifiable identity solutions is greater than ever. But while blockchain promises decentralization, many solutions, like Didit, remain centralized. Why? We explore the challenges of scaling decentralised identity, the risks AI poses to digital privacy, and how business models like Didit's B2B2C approach have helped identity solutions gain traction.

Why Decentralised Identity Hasn’t Scaled (Yet)

Despite blockchain’s promise of user-owned identity, most digital ID solutions today (Didit included) are still centralized. Why?

1. Technical Complexity
   Decentralising identity storage and verification in a secure and scalable way is still a tough engineering problem. Blockchain can be slow, expensive, and not well-suited for the kind of real-time identity verification most companies need.
2. Regulatory Constraints
   If you want to work with banks, hotels, or enterprises, you need to meet standards: GDPR, ISO 27001, KYC, and more. Fully decentralised systems can’t always deliver that yet.
3. Trust and Adoption
   Didit took a hybrid approach: decentralised finance features for consumers (wallets, crypto payouts), but keeping identity verification centralised for now..

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“Decentralisation might be the future.”

So, is full decentralisation even possible?

🎧 Listen to the full episode: "Digital Identity at a Crossroads: AI Risks, Decentralisation Challenges, and What Comes Next" — now available wherever you get your podcasts.