Who is leading the decentralized identity verification revolution? Top DID ecosystem projects to watch in 2024

Preface: Why Decentralized Identity is Crucial in Web3

Starting with Worldcoin, launched by ChatGPT creator Sam Altman, the popularity of decentralized identity verification (DID) technology has been soaring. This project, built using biometric and blockchain technology, instantly brought the entire DID track into the spotlight. Although Web3 and blockchain identity management have existed for years, the emergence of Worldcoin has made investors and developers truly realize the potential of this field.

Let’s take a look: Why will DID become the next focus in the crypto market?

Unveiling DID: The Evolution from Centralized to Decentralized Identity

Traditional vs. Decentralized: What is the fundamental difference?

In the traditional internet, your identity data is controlled by institutions like Google, Facebook, banks, etc. In the Web3 era, blockchain identity( allows you to become the owner of your data.

Decentralized identity verification breaks this monopoly model. Users are no longer passive recipients of identity management but take active control. Your personal data is no longer stored on a company’s server but is kept by you—meaning:

• You decide who can see your information
• You decide how to use this data
• No single entity can freeze or delete your identity

This paradigm shift is a true liberation for users worldwide who are excluded from traditional financial systems.

) The Technical Core of DID: The Power of Key Pairs

The operation principle of DID is quite simple—based on the immutable nature of blockchain:

You hold a pair of keys: public key and private key. The public key is like your account ID, which can be shared openly; the private key is like a safe’s key, which must be kept absolutely secret. Through cryptographic algorithms, only the holder of the private key can prove identity legitimacy, conduct transactions, or access data.

The beauty of this system is: no middleman verification needed. Blockchain automatically records and verifies all operations, ensuring security while protecting privacy.

The Real Impact of DID on the Crypto Ecosystem

Why do DeFi platforms need DID?

Decentralized finance (DeFi) faces a core challenge: how to verify user identity without banks?

DID provides the answer. It allows users to:

• Borrow and lend anonymously but verifiably
• Participate in governance without revealing real identities
• Maintain consistent identity tags across chains during transfers

For DeFi platforms, DID not only enhances security (each transaction linked to verified identity) but also significantly reduces fraud risk.

A New Breakthrough for Regulatory Compliance

As global regulations tighten, KYC### Know Your Customer( and AML) Anti-Money Laundering( become mandatory. DID can elegantly solve this contradiction:

• Platforms can verify user identities (meeting regulatory requirements)
• User information is encrypted and protected (privacy preservation)

This creates a “regulated yet free” middle ground.

Five Key Projects in the DID Ecosystem

) 1. Worldcoin ###WLD(: Pioneer in Biometrics

Project Highlights

• Core Innovation: Creating World ID through iris scans to ensure “one person, one account”
• Integration Scope: Connected with Ethereum, Optimism, Polygon, and other mainstream public chains
• Target Users: Especially focused on unbanked populations worldwide

Latest Data )2025-12-26(

• Current Price: $0.49
• 24h Change: +0.56%
• Circulating Market Cap: $1.28B
• Daily Trading Volume: $1.57M

Underlying Ambition Tools for Humanity (the developer behind Worldcoin) is pushing the World Chain, an L2 network with a rather aggressive goal—to reshape blockchain so that human users, not machines, are prioritized. Rumors of collaborations with OpenAI and PayPal further suggest this project aims to stir up the AI+Finance fields.

Pros and Cons ✓ Unique biometric solution, prevents spoofing attacks ✓ Covers global underdeveloped regions ✗ Privacy concerns (risks of storing iris data) ✗ Difficult global rollout (regulatory differences)

) 2. Lifeform: The Dreamer of 3D Virtual Identities

If Worldcoin is the key to identity, then Lifeform is the virtual avatar that uses this key.

Project Positioning

• Creating ultra-realistic 3D avatars
• Implementing visualized DID protocols
• Providing SDK support for metaverse engines

Funding Milestones

• Series B: Led by IDG Capital
• Series A: $100 million
• Angel Round: $15 million
• Current Valuation: $300 million
• User Base: Over 3 million independent addresses supported

Market Imagination Space Imagine: you appear in Discord with your 3D avatar, which is verified through Lifeform’s DID system, bridging Web2 and Web3. That’s what Lifeform aims to achieve—the perfect fusion of virtual and real identities.

Pros and Cons ✓ Visual identities are more attractive, lowering Web3 entry barriers ✓ Integrates with Web2 social platforms ✗ Vulnerable to hacking, virtual asset security questionable ✗ Complex technical implementation, cross-platform compatibility challenges

3. Polygon ID: The Ultimate Choice for Privacy Geeks

Technical Feature: Zero-Knowledge Proof###ZKP(

What does this mean? You can prove “I am a real person” without revealing your real name, ID number, or any personal information.

Major Moves in 2024

• February: Launched “Humanity Protocol” with Human Institute and Animoca Brands, using palm print recognition
• April: Polygon officially deployed a ZKP-based identity protocol for privacy verification

Why Is This Important? In an era of frequent data leaks, Polygon ID offers users a bold promise: We can verify you, but will never see your information. For users wanting to participate in DeFi but worried about privacy, this is a boon.

Pros and Cons ✓ Strongest privacy protection ✓ Compatible with Ethereum ecosystem ✗ Relatively new, adoption still growing ✗ ZKP technology has high barriers, difficult to promote

) 4. Ethereum Name Service ###ENS(: Human-Friendly Address Book

Core Functionality Replace “0x742d35Cc6634C0532925a3b844Bc9e7595f42” with “alice.eth”—that’s the magic of ENS.

Key Progress in 2024

• February: Partnered with domain registrar GoDaddy (meaning Web2 users can directly use it)
• April: Integrated .box domain (the first on-chain top-level domain TLD)

Market Application ENS is not just an alias system. It is evolving into an entry-level product for blockchain identity, allowing anyone to participate in Web3 easily without memorizing those confusing 16-digit hexadecimal addresses.

Pros and Cons ✓ Most user-friendly, strong community recognition ✓ Cross-platform compatibility ✗ Slow during Ethereum network congestion ✗ Limited scalability

) 5. Space ID: The Unified Cross-Chain Identity Platform

Positioning: The “Universal Registry” for multi-chain era

Unlike ENS, which only serves Ethereum, Space ID supports registration and management of identities across multiple public chains. Whether on Solana, BNB Chain, or other ecosystems, one Space ID can dominate.

Application Scope From DeFi lending, token trading, to NFT minting and DAO governance, Space ID aims to be the foundational infrastructure for cross-chain identities.

Pros and Cons ✓ Strong cross-chain interoperability ✓ Rich application scenarios ✗ Less recognized than ENS ✗ Many competitors

6. Galxe: The Architect of Reputation Systems

Innovation Point: Transforming account data into verifiable decentralized credentials

Galxe is not just a simple identity tool but an infrastructure for reputation systems. Users’ historical behaviors (participation in projects, task completion) are encoded into on-chain credentials.

Application Scenarios

• Projects use it for airdrop verification
• Platforms manage access permissions
• Communities identify active members

Pros and Cons ✓ Innovative data application model ✗ Still in early development stage ✗ Low public understanding

Three Major Practical Challenges Facing DID

1. Steep Adoption Curve

Transitioning from centralized to decentralized is not only a technical issue but also a cognitive one. Users need to learn to safeguard private keys, understand wallets, and recognize risks. Losing a private key means permanent loss of identity—something unfamiliar to users accustomed to “password recovery” on the internet.

2. Cross-Chain Interoperability Dilemma

Can your identity on Ethereum be used on Solana? Currently, the answer is no. Although Space ID and Galxe are attempting to bridge, standardization has not yet been achieved. It’s like each country having its own passport system, not mutually recognized.

3. Regulatory Ambiguity

Protection standards for biometric data vary across countries. Privacy regulations like GDPR and CCPA impose different constraints on DID. How to balance compliance and privacy? This is a key issue all DID projects are pondering.

Five Major Trends in the Next 2-3 Years

1. DID will shift from niche to mainstream With improvements in wallets and education, ordinary users will start to engage with DID, not just tech enthusiasts.

2. Privacy technology upgrades Advances in zero-knowledge proofs, biometrics, and other tech will continue, balancing privacy protection and identity verification.

3. Cross-chain standards emerge The industry will develop unified DID standards, enabling seamless identity flow across different blockchains.

4. KYC/AML reshaping DID will become a compliance tool, helping platforms meet regulatory requirements without sacrificing user privacy.

5. Cross-industry applications DID will extend beyond crypto, penetrating fields like healthcare, education, IoT, and AI.

Final Perspective

Blockchain identity is no longer just a concept but an ongoing reality. From Worldcoin’s iris scans to Lifeform’s virtual avatars, from Polygon ID’s privacy proofs to ENS’s user-friendly addresses, the DID ecosystem is advancing on multiple dimensions.

2024 marks a turning point where DID moves from theory to application. Investors should focus not on the explosive growth of individual projects but on whether this ecosystem is gradually solving the fundamental problem of “how to make identity both private and verifiable.”

The next step depends on who can first break through the critical mass adoption point.

Further Reading

• Top 5 IoT Blockchain Projects to Watch in 2024
• DePIN Track Panorama: Which Projects Are Most Imaginative?
• Comparison of Five ZK Rollup Projects
• Changes in the DEX Ecosystem in 2024
• In-Depth Analysis of Ethereum Layer2 Competition