Blockchain Developer Certification Practice Exam 2026 – All-In-One Guide to Master Your Certification!

Decentralized identity refers to a self-sovereign identity system controlled by individuals, which is directly aligned with the concept of empowering users with ownership over their personal data and digital identities. This approach reduces the need for a central authority to manage identity information, allowing individuals to control their own identity attributes and decide how and when to share them.

In a decentralized identity framework, users possess a unique identifier and can create, manage, and share their identity information without relying on third parties. This enhances privacy, security, and user autonomy since individuals can determine the authenticity of their credentials and maintain their online identities without the risk of centralized databases being exploited.

This concept stands in contrast to the other options, where centralized management, standardization across users, or sole reliance on biometric data does not provide the same level of user control or privacy. Decentralized identity solutions often utilize technologies like blockchain to ensure that identity verification processes can be conducted securely and without the risk of manipulation or unauthorized access, thereby maintaining the integrity and trustworthiness of the identity system.