Must-see crypto identity projects in 2024: From Worldcoin to Polygon ID

In the crypto world, identity crypto is becoming the most overlooked yet most critical infrastructure. Why? Because without a trusted decentralized identity system, the entire security and usability of Web3 are compromised.

Why Is Decentralized Identity (DID) Gaining Popularity?

You may have heard of Worldcoin. Supported by OpenAI founder Sam Altman, this project exploded onto the market in 2023, directly bringing DID technology from obscurity into the spotlight. Worldcoin’s token WLD is currently priced around $0.50, with a 24-hour increase of about 0.22%.

But Worldcoin is just the beginning. The real story is: Why is the entire crypto ecosystem betting on decentralized identity?

Traditional identity management methods are outdated. In Web2, your personal data is controlled by social media, banks, and government agencies, leaving you with no say over your information. DID changes all that—it allows you to truly own and control your digital identity.

From a technical perspective, DID is based on blockchain and cryptography, with a simple core mechanism: you possess a pair of keys (public and private), where the public key is your identity marker online, and the private key is known only to you. What are the benefits of this design? No central authority can freeze your account or tamper with your information, making the system inherently resilient to single points of failure.

What Does DID Mean for the Crypto Market?

In DeFi, NFT trading, and even DAO governance, you need to prove you’re a real person and not a bot, while also protecting your privacy. This is where DID shines—it offers a perfect balance between identity verification and personal data concealment.

This directly addresses two long-standing pain points in the crypto market:

• Security: Every transaction can be traced back to a verified identity, greatly reducing scam risks.
• Privacy: You can prove you’re a real person without submitting sensitive information like ID cards or bank details.

In other words, DID is a necessary step for the crypto market to evolve from “lawless chaos” to “orderly transparency.”

The Most Promising DID Projects in 2024

Worldcoin (WLD): Building Global Identity with Iris Scans

Worldcoin’s World ID is a bold innovation—it uses iris scans to generate a unique digital identity, with the core value of “one person, one account.” This system has already been integrated into multiple blockchains like Ethereum, Optimism, Polygon, and more.

Advantages:

• Biometric solution to prevent multiple accounts
• Aimed at the unbanked global population (huge potential)
• The Tools for Humanity team is pushing forward with World Chain (Ethereum Layer 2), aiming to reshape the relationship between public chains and humans rather than machines

Risks:

• Privacy concerns over biometric data
• Regulatory uncertainties worldwide

Future Highlights: Worldcoin is negotiating a partnership with PayPal, which, if successful, could significantly boost WLD’s practical value.

Lifeform: A New Paradigm for 3D Virtual Identities

This company has raised $300M (Series B led by IDG Capital), with a clear purpose—creating hyper-realistic 3D virtual avatars as Web3 identities. Simply put, your personalized avatar in the metaverse.

Data Highlights:

• Valuation: $300M
• Series B led by IDG Capital
• Over 3 million unique addresses used
• Series A funding of $100M, seed round $15M

Advantages:

• Enhanced interaction experience for virtual identities
• Bridges the aesthetic gap between Web2 and Web3
• Robust security and encryption schemes

Risks:

• High technical complexity
• Cross-platform compatibility challenges
• Interoperability issues with other identity systems

Polygon ID: Playing with Privacy Using Zero-Knowledge Proofs

If privacy is your top concern, Polygon ID is worth paying attention to. It uses ZKP (Zero-Knowledge Proof) technology to verify your identity without revealing any personal data—this is the highest-level privacy solution in crypto.

Latest Developments:

• February 2024: Human Institute collaborates with Polygon Labs and Animoca Brands to launch “Humanity Protocol” (using palm print recognition)
• April 2024: Polygon releases a ZKP-based identity authentication protocol

Advantages:

• Highest level of privacy protection
• Deep integration with the Polygon ecosystem
• Passwordless login experience

Risks:

• Still a relatively new product
• High implementation difficulty and integration costs

Ethereum Name Service (ENS): The Most Practical Identity Gateway

ENS isn’t a strict identity system, but it solves the last mile of identity crypto—turning complex wallet addresses into human-readable names (like alice.eth).

2024 New Moves:

• Partnering with GoDaddy to support traditional internet domain names for ENS
• Integrating .box top-level domains (ICANN-approved), becoming the first on-chain TLD

Why Is This Important: Even the best identity system is useless if user experience is poor. ENS fully addresses this issue.

Space ID: The Universal Key for Cross-Chain Identity

How many wallets do you have across different chains? Space ID allows you to manage them with a single name. From DeFi trading, lending, to NFT minting, one identity, seamless access.

Core Selling Point: Cross-chain interoperability + ease of use

Galxe: Infrastructure for Reputation Systems

Galxe builds a decentralized identity network using account data, especially suitable for reputation systems and access control scenarios. In the era of DAO governance, demand for such infrastructure is exploding.

Real Challenges Facing DID

Don’t be fooled by hype—large-scale adoption of DID still faces several hurdles:

1. High Migration Costs — Switching from Web2 centralized identity systems to Web3 is disruptive for both enterprises and individuals.

2. Steep Technical Barriers — Managing private keys and understanding zero-knowledge proofs? Most users will give up.

3. New Security Risks — Losing your private key equals losing your identity. This is a nightmare for users accustomed to “forgot password and recover.”

4. Regulatory Vacuum — Legal definitions of DID are still being explored worldwide; compliance remains a big question.

What Will Happen to DID in the Next 5 Years

Trend 1: Application Explosion
In DeFi, NFT markets, and DAO governance, DID will no longer be optional but essential. Expect to see many DID-integrated applications in 2024-2025.

Trend 2: Privacy Solutions Upgrading
Zero-knowledge proofs and biometric tech will become more mature and affordable. The tension between privacy and usability will gradually ease.

Trend 3: Cross-Chain Interoperability Becomes Standard
A universal identity across all public chains is an inevitable development.

Trend 4: Penetration into Traditional Sectors
High-value sectors like healthcare, finance, and government will gradually adopt DID. The combination of IoT and AI will also spawn new identity crypto applications.

Trend 5: Regulatory Inclusion
Governments will define DID and KYC/AML clearly, presenting both risks and opportunities—compliant projects will see explosive growth.

Final Words

Decentralized identity isn’t a future concept; it’s happening now. Projects like Worldcoin, Lifeform, and Polygon ID symbolize the shift of the crypto ecosystem from “anyone can play” to “trusted verification.”

For investors, the identity crypto track is just beginning, but competition will intensify. Those who can balance usability and privacy will be the winners.