Digital Identity

A digital identity is an identity used by a person in a computer network interaction (e.g., in auctions or similar electronic transactions). The purpose of such an identity is to approximate the level of trust people feel during human interactions. Since interacting in person is not possible in an electronic transaction, which occurs over vast distances on the Internet, digital identity provides a secure mechanism of establishing an identity and reputation online.

There are varying degrees of robustness of a digital identity, depending on the kind of transaction. Some transactions require a higher level of trust and information than others, and a digital identity needs to be only as robust as the particular transaction demands.

A digital identity consists of two parts: 1.) Identity, who the person is, and 2.) Attributes of the identity, the credentials that one holds.

The simplest possible digital identity consists of an ID (such as a user name) and an authentication secret (such as a password), which allows for authentication and authorization. A more complicated digital identity can have legal as well as technical implications. For example, a more complex digital identity can be used to maintain confidentiality and data integrity, as well as establish proof of source and non-repudiation, which are crucial in allowing online transactions. Accomplishing a very personal task in an inherently impersonal setting is the purpose of the digital identity.