Instead of a centralized issuer and storage, DID solutions spread out the issuance and storage of information that make up an identity across various entities.
This information could include a user’s height, weight, eye color, favorite Spotify playlists, and even social security number. Decentralized identity solutions are very comprehensive and sometimes offer incentives to attract new users, similar to how airline mile points can be earned for signing up for new credit cards.
Instead of storing your personal information on a single server, blockchain technology encrypts this data and spreads it across multiple nodes. Usually, this encryption comes in the form of a two-key password called a private and public key. The only way to access the personal information in question is by matching the two keys.