The 2024 DID Track Explodes: These Digital Identity Projects Are Worth Watching

In the Web3 era, a new question confronts everyone—Do you truly own your digital identity?

In the traditional internet, your identity data is firmly controlled by social media platforms, banks, government agencies, and other institutions. But in the blockchain world, the situation is changing. The rise of Decentralized Identifiers (DID) and digital identity management has begun to give users back control over their own identity sovereignty.

Worldcoin (WLD) exploded in popularity in 2023, suddenly igniting the entire DID track. This project, backed by OpenAI founder Sam Altman, combines biometric recognition with on-chain identity, opening a new door. Now, more and more projects are competing in this space. So, which DID projects are the most worth watching in 2024? Where do their core competitive advantages lie?

What exactly is DID? Why is it suddenly so popular?

Simply put, DID is your truly owned digital identity—not controlled by any institution, fully managed by yourself.

In Web3, DID signifies a shift from centralized identity management to decentralized. You prove your identity using a cryptographic key system (public key + private key), with the entire process recorded on the blockchain, transparent and tamper-proof.

Why is it suddenly so hot? Because it solves a core pain point: In DeFi, NFT trading, DAO governance, and other scenarios, you need a way to prove your identity while protecting privacy. DID is the answer.

Moreover, with the global emphasis on data privacy and the strengthening of Anti-Money Laundering (AML) regulations, DID has become a bridge linking Web3 with traditional finance.

Project comparison: whose DID solution is the most impressive?

Worldcoin (WLD): The most radical biometric recognition approach

Core innovation: Using iris scans to ensure “one person, one identity,” which is unique in the DID field.

Worldcoin’s World ID is based on the uniqueness of biometric recognition, ensuring each person can only participate once in token distribution. This system has been integrated into multiple public chains such as Ethereum, Optimism, Polygon, and more.

Latest data (as of December 26, 2024):

• WLD current price: $0.50
• 24h change: -0.22%
• Market cap: $1.28B
• 24h trading volume: $1.44M

Advantages:

• Biometric recognition fundamentally prevents fake accounts
• Targets unbanked populations, with strong global inclusivity
• Tools for Humanity team is pushing forward with World Chain (Ethereum Layer-2), building a user-friendly public chain

Disadvantages:

• Iris data privacy concerns are significant
• Strict global regulatory scrutiny limits progress

Future highlights: Rumors of ongoing collaboration with PayPal; once implemented, it will be a major news event.

Lifeform: A new way to create 3D virtual identities

Core innovation: Combining hyper-realistic 3D avatars with DID, giving you a truly personal virtual image in the metaverse and Web3 social scenes.

The project’s popularity is evident from its funding scale:

• Valuation: $300 million
• Series B funding: Led by IDG Capital
• Series A funding: $100 million
• Angel round: $15 million
• User base: Over 3 million unique addresses

Lifeform’s idea is interesting—using 3D images to visualize and personify DID, then integrating into Web2 social platforms. This approach retains Web3’s security and autonomy while lowering the barrier for ordinary users.

Advantages:

• Highly creative, user experience is intuitive
• Strong backing and ecosystem support
• The combination of 3D avatars + DID is relatively rare in the market

Disadvantages:

• Technologically complex, high implementation and maintenance costs
• Privacy protection mechanisms need further optimization

Polygon ID: The technological pinnacle of privacy protection

Core innovation: Using Zero-Knowledge Proofs (ZKP) to allow identity verification without revealing personal information. This is currently the most advanced privacy solution.

Major moves in 2024:

• February: Human Institute collaborates with Polygon Labs and Animoca Brands to launch “Humanity Protocol,” using palm recognition technology
• April: Polygon released a ZKP-based ID protocol, enabling users to verify identity in complete anonymity

Advantages:

• Highest level of privacy protection
• Mature technical solutions with depth
• Supported by the Polygon ecosystem, with rich application scenarios

Disadvantages:

• High user education cost; complex technical concepts
• Regulatory compliance still has room for improvement

Ethereum Name Service (ENS): A simple and efficient identity gateway

Core innovation: Converting complex wallet addresses into easy-to-remember names, like alice.eth. Seemingly simple, but one of the most practical applications of DID.

2024 new developments:

• February: Partnered with GoDaddy, allowing ordinary users to link ENS with Web domains directly
• April: Integrated .box domains (the first fully on-chain ICANN top-level domains)

Advantages:

• User-friendly, lowest entry barrier
• Already a standard tool in the Ethereum ecosystem
• Perfect bridge between Web2 and Web3

Disadvantages:

• Relatively limited functionality
• Easy to use but privacy protection capabilities are moderate

Space ID: The unified cross-chain identity portal

Core innovation: A single identity usable across multiple blockchains, solving the “one person, multiple accounts” problem.

Space ID supports a full suite of applications from DeFi, lending, to NFT minting, making it a truly cross-chain DID infrastructure.

Advantages:

• Best cross-chain compatibility
• Wide application coverage
• Friendly to future multi-chain ecosystems

Disadvantages:

• Not as well-known as Polygon ID and ENS
• Community activity can be improved

Galxe: A reputation-based DID solution

Core innovation: Not just identity management, but building a decentralized credential network based on on-chain behavior data. Your transaction history, project participation, achievements—all can become your “credit certificate.”

Advantages:

• Innovative approach, integrating reputation systems
• Practical help for DeFi risk control
• Open and scalable platform design

Disadvantages:

• Still a young project
• Adoption still requires time

Pain points and challenges in the DID track

Despite promising prospects, there are many pitfalls in reality:

1. High technical migration costs Switching from traditional identity systems to DID requires reengineering entire infrastructure. Both enterprises and individuals need to learn new management methods, making the process long and expensive.

2. Private key management risks Owning your data means managing your private keys well. Losing your private key = losing your identity; no one can help recover it. This is a significant psychological barrier for ordinary users.

3. Cross-chain compatibility still insufficient Although projects are working hard, there is no perfect cross-chain solution yet. Interoperability of DIDs across multiple chains still takes time.

4. Regulatory gray areas Global regulatory attitudes toward DID vary. Balancing user privacy with KYC/AML compliance remains an ongoing exploration.

Major trends for DID in 2024-2025

Cross-chain unification: Solutions like Space ID and Polygon ID will gain increasing attention.

Privacy enhancement: Technologies like zero-knowledge proofs and biometric recognition will further integrate, elevating privacy protection levels.

Application expansion: DID will extend from DeFi to healthcare, education, IoT, AI, and other fields, no longer limited to crypto ecosystems.

Regulatory friendliness: DID will become the best compromise for KYC/AML and privacy protection, gradually gaining recognition from traditional finance.

Final words

DID is not just a future concept; it has already entered the practical application stage in 2024. From Worldcoin’s biometric recognition, Polygon ID’s zero-knowledge proofs, to ENS’s ease of use—each project is solving the “identity” problem from different angles.

For investors, the key is to see which projects can truly address user pain points and which teams have enough execution power. For ordinary users, now is the time to start engaging with and understanding DID, as it is about to become a standard feature of the Web3 world.

Which DID project to choose? There is no absolute answer. But one thing is certain: mastering your digital identity will become a fundamental right in the next-generation internet.