DID Projects to Watch in 2024: Which Identity Management Solution Is the Most Worth Investing In?

Talking about DID (Decentralized Identity), many people are still stuck in the “conceptual stage.” But since Sam Altman’s Worldcoin exploded in popularity last year, the DID track has instantly shifted from an obscure niche to a focal point—this thing really works.

What exactly is DID? Why should you pay attention?

Simply put: DID is about reclaiming your identity data from centralized platforms and keeping it in your own hands. In traditional internet, your identity information is monopolized and controlled by institutions like Facebook and banks. But in the Web3 world, through blockchain technology and key pairs (public key + private key), you can fully autonomously manage your digital identity.

What is the most critical advantage of this system? Privacy + Security + Control. Without centralized institutions, there’s no single point of failure, making it harder to be hacked or have data leaked. You lock your data with your private key, and no one can tamper with it.

The real value of DID in the crypto world

For DeFi applications, DID is infrastructure-level stuff. It allows each transaction to be linked to a real identity (without exposing privacy), greatly reducing scam risks. This is vital for building a safer, more trustworthy financial ecosystem.

5 DID projects to watch in 2024-2025

Worldcoin (WLD): Creating global identity through iris scans

Worldcoin’s World ID uses iris scans to create a unique identity. The core logic is: one person can only register once, preventing sybil attacks and identity fraud. This is a game-changer for DeFi airdrops and farming.

Latest data (December 2025):

• Price: $0.49
• 24h change: -2.65%
• Market cap: $1.26B
• 24h trading volume: $1.66M

Worldcoin’s ambitions are big: it has deployed World ID on multiple chains like Ethereum, Optimism, Polygon. Recently, it has also been in talks with PayPal and OpenAI, aiming to push the DID + basic income model to the global unbanked population. Tools for Humanity also launched World Chain (Ethereum L2 network), prioritizing real human interaction over bots—an interesting anti-sybil design.

Advantages: Innovative biometric solution + inclusive financial vision
Risks: Privacy concerns over biometric data + difficulty in global rollout

Lifeform: “3D Virtual Identity” in Web3

Different from Worldcoin’s biometric approach, Lifeform focuses on virtual identity + metaverse. It develops hyperrealistic 3D avatar systems, allowing you to use the same virtual identity across various Web3 platforms.

Lifeform has raised significant funding:

• Series B valuation: $300M (led by IDG Capital)
• Series A: $100M —serving over 3 million unique addresses

The cleverness of this system lies in linking Web2 social platforms with Web3 identities, enabling users to directly use DID virtual identities on Twitter, Discord, and other platforms, smoothly transitioning into the Web3 world.

Advantages: Virtual identities naturally protect privacy + cross-platform interoperability
Risks: Dependence on mature metaverse ecosystems + user habit formation challenges

Polygon ID: Privacy-first ZKP solution

Polygon ID uses zero-knowledge proof (ZKP) technology, allowing you to prove your identity without revealing specific data. Simply put: you can prove “I am a real person” without disclosing your name, age, location, or other sensitive info.

In 2024, Polygon will undertake two major initiatives:

• February: Collaborated with The Human Institute to launch “Humanity Protocol,” replacing traditional KYC with palm print recognition
• April: Launched ZK-based identity verification protocol

This solution is especially suitable for DeFi platforms needing compliance checks (KYC/AML) while protecting user privacy.

Advantages: Strongest privacy protection + regulatory friendliness
Risks: High technical complexity + learning curve for developers

ENS: The simplest and most practical on-chain identity

Ethereum Name Service (ENS) might be the most down-to-earth DID application—replacing complex 0x wallet addresses with easy-to-remember names like “alice.eth.” It may seem small, but it significantly lowers interaction barriers.

Recent ENS developments:

• February: Partnered with GoDaddy to support mapping ENS names to traditional web domains
• April: Integrated .box top-level domains, becoming the first on-chain TLD resolution scheme

Advantages: Highest usability + existing ecosystem
Risks: Relatively basic functionality + limited scalability

Space ID and Galxe: Cross-chain identity and reputation systems

Space ID offers a universal cross-chain identity layer—using the same identity across Bitcoin, Ethereum, Solana, and other chains. Perfect for the multichain era.

Galxe focuses on identity + reputation systems, building user credibility profiles based on on-chain data, suitable for DeFi risk control, NFT community access, and more.

What are other pain points in blockchain identity management?

Although the prospects for DID are promising, there are many challenges:

1. Adoption difficulty: Transitioning from centralized identities to DID requires user mindset shifts, education, and technical upgrades—all tough to achieve.

2. Technical complexity: Private key management, cross-chain interoperability, DID standardization—these issues are still unresolved. Losing your private key means losing your identity forever, a risk hard to explain to non-technical users.

3. Balancing privacy and security: DID can enhance privacy but may also introduce new attack surfaces. Ensuring security during data flow in decentralized networks needs ongoing improvement.

4. Regulatory uncertainty: Different countries have varying attitudes toward DID, making it complex to balance KYC/AML compliance with privacy protections.

What’s next? Trend predictions for the DID track

• Mainstream application expansion: DeFi, NFT marketplaces, DAOs will gradually integrate DID support
• Privacy tech upgrades: Zero-knowledge proofs will become more user-friendly, biometric solutions will iterate
• Cross-chain interoperability: A unified identity usable across multiple chains will become standard
• Entry into traditional industries: Healthcare, finance, government sectors may start pilot DID projects
• Web3 + IoT/AI integration: Device identity authentication, AI agent identity verification will emerge as new demands

Bottom line summary

DID is not just a conceptual idea—it’s the most direct expression of user sovereignty in the Web3 world. Worldcoin’s biometric approach, Lifeform’s virtual identities, Polygon ID’s privacy protections, ENS’s ease of use—all are different paths aiming to give you true ownership of your digital identity.

In 2024-2025, DID will evolve from a “tech niche” to an “infrastructure necessity.” The key is to find solutions suited to your scenario—whether you prioritize maximum privacy, ease of use, or cross-chain capabilities. Choosing the right one will enable you to truly control your identity in Web3.