Navigating the Eras of Internet Identity: Centralized vs. Decentralized

The evolution of internet identity management has moved through three distinct eras: centralized, federated, and decentralized. In the centralized model, user identity is controlled by individual applications. Users create a new account for every service, which leads to fragmented identities and poor user experiences (UX) due to the need to remember multiple passwords and manage different logins for each platform. Security is often compromised as passwords are reused across platforms, and users have little control over their data, which is siloed within each application.

Moving to the federated era, identity management improved with the introduction of Identity Providers (IDPs). These allowed users to sign in to multiple applications using a single set of credentials, such as through social logins. This user-centric model streamlined the experience and allowed for better data management. However, control still largely rests with the IDPs, who manage user identities across platforms, leading to some limitations in data ownership and transparency.

In the decentralized era, identity management takes a peer-to-peer approach, where users fully control their own data. Using cryptographic keys and verifiable data registries, this model empowers users with self-sovereign identities, enabling them to selectively share information across applications without relying on centralized authorities. This offers more security, transparency, and privacy, giving users full ownership of their digital identities.