Blockchain-Based Identity Management in Decentralized Applications

Abstract

The emergence of decentralized applications (dApps) has posed a challenge to the current identity management system, which is often centralized authority, mostly exposed to security breaches, information silos, and poor control of users. Blockchain technology introduces a disruptive technology with its decentralized, transparent and tamper-proof architecture, which can usher in new solutions to digital identity. The paper is an investigation of blockchain-based identity management systems, their architecture, working life cycle and dApp integration with identity management solutions. It explores three prominent identity frameworks, centralized, federated, and self-sovereign identity (SSI), and puts blockchain in the group of the very drivers of user-centric and verifiable identity resolutions. The analysis of smart contracts applied to identity operations, consensus mechanisms used in establishing trust, and numerous security and privacy improvements, such as zero-knowledge proofs, is discussed. The potential of blockchain-based identity can be seen in terms of its use in real-world business processes in the areas of decentralized finance (DeFi), healthcare data sharing, and supply chain management. Moreover, the document argues about the use of interoperability mechanisms like Decentralized Identifiers (DIDs) or Verifiable Credentials (VCs), and covers the most important points of scalability, compliance considerations, and trans-chain identity management. The future research directions, such as AI-powered verification, quantum-resistant protocols, or wider ecosystem adoption, are discussed as well. The research behind this project aims to provide a detailed background for scholars and practitioners who wish to implement safe, productive, and privacy-protected identity management in decentralised digital environments