Blockchain-Based Digital Identity Management And Verification Systems

Abstract

Digital identity management remains one of the most pressing challenges in the modern information economy. Traditional centralized identity systems suffer from single points of failure, pervasive data breaches, and an inherent lack of user control over personal information. This paper presents a comprehensive survey of blockchain-based digital identity management and verification systems, examining the architectural paradigms that underpin self-sovereign identity (SSI), federated identity, and decentralized identifier (DID) frameworks. We compare leading blockchain platforms—including Ethereum, Hyperledger Fabric, Solana, Bitcoin, and Polkadot—on critical metrics such as transaction throughput, consensus mechanisms, and smart contract capabilities. Through systematic analysis of real-world deployments in government, healthcare, and financial services, we evaluate the practical viability of decentralized identity solutions. Our comparative assessment reveals that self-sovereign models outperform centralized and federated approaches on security, privacy, and user control dimensions, while facing trade-offs in scalability and interoperability. The paper further identifies open challenges including regulatory alignment, key management usability, and cross-chain identity portability, proposing a research agenda for advancing blockchain-based identity toward mainstream adoption.