Blockchain-Based Decentralized Identity System: Design and Security Analysis

Abstract

This paper presents a novel blockchain-based decentralized identity (DI) system, tailored for enhanced digital identity management in Internet of Things (IoT) and device-todevice (D2D) networks. The proposed system features a hierarchical structure that effectively merges a distributed ledger with a mobile D2D network, ensuring robust security while streamlining communication. Central to this design are the gateway nodes, which serve as intermediaries, facilitating decentralized identifier (DID) registration and device authentication through smart contracts and distributed storage systems. A thorough security analysis underscores the system's resilience to common cyber threats and adherence to critical principles like finality and liveness.