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Decentralized identifiers (DIDs)

Decentralized Identifiers (DIDs) are a crucial component of digital identities used in the energy sector for the digitalization of the electricity network. In the context of the energy transition, DIDs enable the creation of secure, verifiable identities for energy assets (e.g., solar panels, smart meters, and other grid-connected devices) using blockchain technology. These identities allow for the decentralized registration, management, and verification of devices within the energy system, which is essential for automating processes such as energy trading, grid balancing, and system services. They are called "decentralized identifiers" (DIDs) because they are designed to function without a central authority or intermediary controlling the identity registration, verification, or management process. Instead, DIDs operate in a decentralized manner, typically leveraging blockchain technology, which ensures that no single entity has control over the entire system. DIDs can be created and managed directly by the user or the asset owner themselves, and this self-sovereign approach gives entities control over their own identifiers, enabling them to manage and share their identity data without relying on a central issuer. Distributed Energy Resources (DERs) in a decentralized grid will transact with other entities autonomously. These transactions require fail–proof authentication as well as transparent and immutable registering. These are best served with blockchain–native identifiers as defined in the W3C DID recommendation. [https://www.w3.org/TR/did-core/]

To try decentralized authentication with a DID, refer to [this] howto article.

How DIDs Are Used to Digitalize the Electricity Network​

  1. Device Identification and Authentication:
    • DIDs provide each energy device with a unique, verifiable identity that can be authenticated securely using blockchain technology. This ensures that every device in the network can be trusted, and its identity verified in real-time.
  2. Integration with Smart Meters (SMGWs):
    • DIDs are integrated with smart meter gateways, enabling the secure transmission of data between decentralized devices and the broader energy grid. This integration allows energy assets to register, authenticate, and transact automatically and securely.

Contribution to the Energy Transition​

  • Automation and Real-Time Management: DIDs and the blockchain facilitate the automation of energy management, allowing for near real-time control of distributed energy resources. This is critical in managing the variability of renewable energy sources like solar and wind.
  • Decentralization and Increased Efficiency: By decentralizing identity management, the system reduces the reliance on central authorities, increasing the system's efficiency and resilience. This supports the broader integration of decentralized renewable energy resources, crucial for decarbonization.
  • Data Security and Privacy: The use of blockchain technology and DIDs ensures secure, tamper-proof data management, critical for maintaining data privacy and system integrity as the energy network becomes increasingly digital and interconnected.

By utilizing DIDs, the energy sector can create a digital ecosystem that supports secure, efficient, and automated management of energy resources, aligning with the goals of the energy transition.

KILT - A Decentralized Identity Protocol​

Decent EC uses the KILT blockchain to create self-sovereign, verifiable digital identities. Built on Polkadot’s Substrate framework, KILT provides a secure and scalable platform for issuing, managing, and verifying credentials using blockchain technology. It supports privacy by design, allowing users to control their personal data and share only the necessary information through verifiable credentials without relying on a central authority. KILT’s focus on interoperability and decentralization makes it suitable for various identity use cases across industries like energy, finance, and healthcare.

Authentication Flow​

Explanation :

  • User: Initiates the authentication process by requesting access through their Browser Wallet.
  • Browser Wallet: Interacts with the KILT blockchain to verify the user’s identity using their decentralized identifier (DID) and credentials.
  • KILT Blockchain: Checks the DID and returns the verification status.
  • Service Provider: Validates the credential shared by the Browser Wallet through the KILT Blockchain and grants or denies access based on the credential's validity.