Microsoft Working On Blockchain Decentralized Identity Systems

At UseTheBitcoin we have written several times about how Blockchain technology can be used not only for powering cryptocurrencies, but also for many other use cases. Microsoft is working on developing a product to store and process digital identity data. The information was released by Alex Simons, Director of Program Management from the Microsoft Identity Division.

Microsoft Digital Identities

In the statement released by Microsoft, they explained that the company is embracing public blockchains to use in decentralized identity systems. Microsoft is working with the Decentralized Identity Foundation (DIF) to solve some of the challenges when storing and managing digital identities and personal data.

The statement released by Microsoft reads as follows:

“To achieve this vision, we believe it is essential for individuals to own and control all elements of their digital identity. Rather than grant broad consent to countless apps and services, and have their identity data spread across numerous providers, individuals need a secure encrypted digital hub where they can store their identity data and easily control access to it.”

By using blockchain, the identity will not be controlled by any single centralized institution. Governments or tech companies will not have to manage our data. The decentralized identity system empowers individuals with control over their identity and private data.


Microsoft is developing an off-chain solution similar to the Lightning Network that will allow the network to process massive volumes of ID data without congesting the main blockchain network.

“We are humbled and excited to take on such a massive challenge, but also know it can’t be accomplished alone,” reads the statement. “We are counting on the support and input of our alliance partner, members of the Decentralized Identity Foundation, and the diverse Microsoft ecosystem of designers, policy makers, business partners, hardware and software builders.”

Microsoft is not the first enterprise that has its own Identity project. Other companies like Blockstack ID and uPort are also experimenting with it. The government of Canada has also been working to provide its citizens with a ‘Known Traveller Digital identity’ that would allow them to reduce migratory controls while traveling.

Image: TechCrunch

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