DID Solution: Redefining Digital Identity on the Blockchain

Digital identity is becoming the foundation of the modern internet world, and DID (Decentralized Identity) offers a completely new approach to this issue. Instead of relying on centralized organizations, users can independently own and manage their identities on the blockchain. This article will analyze two prominent DID solutions: ENS built on Ethereum and .bit on Nervos CKB Layer 1, as well as compare them to the traditional DNS system.

What is DID? Why is decentralized identity important?

In the context of the global internet, DID (Decentralized Identity) represents a paradigm shift in how we authenticate and manage personal information. Unlike traditional identification systems such as usernames, emails, or social security numbers—controlled by centralized servers—DID is created, owned, and managed entirely by the user.

Blockchain technology is the technical backbone for DID. It provides an infrastructure for tamper-proof, transparent, and highly secure identity management. Each DID is a unique identifier registered on a distributed ledger, which only the owner can verify and update. This completely eliminates the need for intermediaries, giving users autonomy, privacy, and better control compared to centralized identity management systems.

ENS on Ethereum: The first blockchain-based domain name system

ENS (Ethereum Name Service) is a pioneering decentralized domain name system built on the Ethereum blockchain. It addresses a fundamental problem: converting complex identifiers that computers understand into human-readable, memorable names.

Instead of remembering long, complicated strings, ENS users can use names like “alice.eth” as a substitute. ENS architecture includes two main components: the registry, which stores all domain names along with owner information, resolver, responsible for mapping names to Ethereum addresses or other data.

ENS supports both forward resolution (name to address) and reverse resolution (attaching metadata to an address). Users can easily register, own, and manage ENS domain names via supported wallets or applications, creating a user-friendly and intuitive experience.

.bit and Nervos: Different approaches to multi-chain identity

.bit is a cross-chain decentralized account system built on Nervos CKB, an independent Layer 1 blockchain. It offers a unique naming system with the “.bit” suffix, which can be used for purposes ranging from cryptocurrency transfers, domain resolution, to identity verification.

A key feature of .bit is its broad compatibility. Users can not only use Nervos CKB addresses but also manage .bit accounts with private keys from any public blockchain—Bitcoin, Ethereum, or others—thanks to support for flexible signature algorithms. This makes .bit a true bridge between different blockchains.

The .bit system comprises five components: the core protocol (smart contracts on Nervos CKB), Keeper (off-chain program that triggers transactions), resolution service, SDK for clients, and a Dapp interface for users. This architecture allows .bit to efficiently handle domain resolution requests for the public.

ENS vs .bit: Which approach is more suitable?

Although both ENS and .bit are decentralized DID solutions aimed at building a user-centric internet, they have fundamental differences.

Blockchain platform: ENS is based on Ethereum, while .bit is built on Nervos CKB. This technological difference affects compatibility and application scope. ENS mainly focuses on Ethereum addresses, though it also supports other cryptocurrencies. Conversely, .bit allows use of any public key, offering greater flexibility.

Domain suffix: ENS uses “.eth” (e.g., “alice.eth”) while .bit uses “.bit” (e.g., “alice.bit”). This helps users easily distinguish which naming system they are interacting with.

Technical architecture: ENS has two main components (registry and resolver), whereas .bit has five (core protocol, Keeper, resolution service, SDK, Dapp interface). The more complex architecture of .bit enables support for multiple use cases across chains.

Ownership: In ENS, accounts can be owned by an external address or a smart contract. In .bit, owners can be private keys from any public blockchain, or even email addresses. This makes .bit more accessible to users unfamiliar with blockchain.

Resolution mechanism: ENS uses a two-step process (query registry, then query resolver), while .bit analyzes the global state based on Nervos CKB transactions to provide resolution services.

The old DNS is no longer suitable: Why DID is the future

To better understand the significance of DID, we need to compare it with the traditional DNS (Domain Name System). Although both map human-readable names to machine-readable identifiers, they differ in architecture, control, and underlying technology.

Architecture: DNS is a hierarchical, centralized system overseen by entities like domain registrars and ICANN. In contrast, DID is built on a decentralized blockchain architecture, operating without trust in third parties.

Control and ownership: In DNS, third parties like registrars control domain names. This can lead to censorship, domain seizure, or unwanted disputes. With DID, users have direct control, reducing dependence on centralized organizations.

Security and trustworthiness: DNS relies on centralized certificate authorities to establish secure connections. DID leverages blockchain’s inherent security features, creating a trustless environment where identities can be verified securely and tamper-proof without intermediaries.

Cross-platform compatibility: DID offers interoperability across multiple blockchains and decentralized applications, allowing users to manage identities across platforms. DNS mainly maps domain names to IP addresses, lacking this flexibility.

Privacy and control: With DID, users have better control over their digital identities, managing information and privacy without relying on third-party services. DNS, dependent on centralized services, cannot guarantee the same level of privacy and control.

The future of digital identity

Decentralized identity is not just a technological trend but a revolution in how we think about online identities. Solutions like ENS and .bit demonstrate that it is possible to build secure, user-friendly systems that give users full control over their data on the blockchain.

By harnessing blockchain’s power, DID offers superior security, privacy, and user control compared to traditional identity management models. With the development of ENS on Ethereum and .bit on Nervos CKB, users are increasingly empowered to manage their digital identities—an important step toward a decentralized, user-centric internet of the future.