Definition ∞ Tokenized identity refers to the representation of an individual’s or entity’s identity attributes as verifiable digital tokens on a blockchain. These tokens can securely store personal data, credentials, or attestations, granting the owner control over their identity information. Unlike traditional centralized identity systems, tokenized identity allows for selective disclosure and reduces reliance on intermediaries. It leverages blockchain’s security and immutability.
Context ∞ The discussion surrounding tokenized identity is gaining traction as a solution for enhanced privacy and user control in the digital realm. A critical future development involves achieving interoperability standards for these identity tokens across various blockchain networks and applications. Observing projects that implement tokenized identity solutions offers insight into the progression of self-sovereign identity and its potential to reshape online interactions.