Cryptographic Identity

Definition ∞ Cryptographic identity represents a digital assertion of a user’s or entity’s presence and attributes, secured by cryptographic methods. This form of identity relies on public-key cryptography, where a private key controls a unique public address on a blockchain or distributed ledger. It enables verifiable authentication and authorization without disclosing personal data directly. This system permits secure interaction and transaction signing in decentralized networks.
Context ∞ The current discourse surrounding cryptographic identity involves its application in self-sovereign identity initiatives and decentralized autonomous organizations. Discussions often concern balancing pseudonymity with regulatory compliance, particularly for Anti-Money Laundering and Know Your Customer requirements. Advances in zero-knowledge proofs offer avenues for privacy-preserving identity verification, a significant area of ongoing research.