One of the major advantages of DApps is that it generally guarantees user anonymity. But many applications require the process of verifying user identity to use the app. As there is no central authority in a DApp, it become a challenge to verify the user identity.
In centralized applications, humans verify user identity by requesting the user to submit certain scanned documents, OTP verification, and so on. This process is called know your customer (KYC). But as there is no human to verify user identity in DApps, the DApp has to verify the user identity itself. Obviously, DApps cannot understand and verify scanned documents, nor can they send SMSes; therefore, we need to feed them with digital identities that they can understand and verify. The major problem is that hardly any DApps have digital identities and only a few people know how to get a digital identity.
There are various forms of digital identities. Currently, the most recommended and popular form is a digital...