Decentralized Identity (DID)
A self-sovereign digital identity system built on blockchain technology where individuals own and control their personal data and credentials without relying on centralized authorities like governments or corporations. DIDs use cryptographic proofs to verify claims (age, qualifications, membership) without revealing unnecessary personal information, enhancing both privacy and security.
“Instead of sharing your full passport with every service, a decentralized identity could let you prove you're over 18, a citizen of a specific country, or a university graduate using a cryptographic proof — without revealing any other personal details.”
Soulbound Token (SBT)
A non-transferable token that remains permanently attached to a specific wallet address, conceptualized by Vitalik Buterin. SBTs are designed to represent identity, achievements, credentials, and reputation that shouldn't be tradeable or transferable. They enable on-chain identity systems where trust is built on verifiable, permanent records rather than transferable assets.
Verifiable Credential
A tamper-evident, cryptographically signed digital claim about a subject (person, organization, or thing) that can be verified by anyone without contacting the original issuer. In blockchain contexts, verifiable credentials are used alongside decentralized identifiers (DIDs) to enable privacy-preserving identity verification — proving specific attributes (age, qualifications, memberships) without revealing unnecessary personal information.
Web3
A vision for the next evolution of the internet built on decentralized blockchain infrastructure, where users own their data, digital assets, and identity rather than relying on centralized platforms. Web3 encompasses DeFi, NFTs, DAOs, decentralized identity, and dApps — aiming to shift power from corporations (Web2) back to individuals through cryptographic ownership and governance.
Wallet
A software application or hardware device that stores the cryptographic private keys needed to access and manage cryptocurrency holdings. Despite the name, wallets don't actually store crypto — the assets exist on the blockchain. The wallet stores the keys that prove ownership and authorize transactions. Wallets can be hot (internet-connected) or cold (offline).