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The Decentralisation Paradox in Digital Identity: Centralising Decentralisation with Digital Wallets?

Ioannis Konstantinidis, Ioannis Mavridis, Evangelos K. Markakis

Abstract

Digital identity is shifting from service- and network-centric approaches toward user-centric ones that promise users increased control over their data. Despite their decentralised design, such approaches often reintroduce centralised components in different forms. This research explores this tension, i.e., the decentralisation paradox, and argues that user-centric architectures tend to redistribute rather than eliminate centralisation. Based on Critical Systems Thinking (CST), digital identity is framed as a "wicked problem" that spans across the technical, legal, social and ethical dimensions. The paper argues that understanding all these interdependencies is essential for designing reliable architectures and ensuring the next generation of digital identity goes beyond superficial decentralisation.

The Decentralisation Paradox in Digital Identity: Centralising Decentralisation with Digital Wallets?

Abstract

Digital identity is shifting from service- and network-centric approaches toward user-centric ones that promise users increased control over their data. Despite their decentralised design, such approaches often reintroduce centralised components in different forms. This research explores this tension, i.e., the decentralisation paradox, and argues that user-centric architectures tend to redistribute rather than eliminate centralisation. Based on Critical Systems Thinking (CST), digital identity is framed as a "wicked problem" that spans across the technical, legal, social and ethical dimensions. The paper argues that understanding all these interdependencies is essential for designing reliable architectures and ensuring the next generation of digital identity goes beyond superficial decentralisation.
Paper Structure (16 sections, 2 figures)

This paper contains 16 sections, 2 figures.

Table of Contents

  1. Introduction
  2. Evolution of Digital Identity (RQ1)
  3. Service-, Network- and User-Centric Approaches
  4. Trust and Co-ordination in User-Centric Approaches
  5. Real-World Implementations of User-Centric Approaches
  6. Multi-Dimensional Analysis of Digital Identity (RQ2)
  7. Technical Dimension
  8. Legal Dimension
  9. Social Dimension
  10. Ethical Dimension
  11. Discussion: Decentralisation Paradox in Digital Identity (RQ3)
  12. A Single Point of Convergence and Exposure
  13. A Single Authority that Anchors Trust
  14. A Forgotten User: Cognitive Overload and Exclusion
  15. A Responsibility Shift Disguised as Empowerment
  16. ...and 1 more sections

Figures (2)

  • Figure 1: An illustration of a user-centric architecture that depicts the issuer, user, verifier and the underlying trust mechanism.
  • Figure 2: The Digital Identity Tetrahedron: A conceptual model that illustrates the technical, legal, social and ethical dimensions of digital identity.