The information of an entity stored in a computer system is their digital identity. Entity can refer to an individual, an organization, or a computer. To identify themselves in the digital world, entities use digital identities.
Digital identities are used to create the same level of trust that a face-to-face transaction would generate in the real world, but through a digital network.
Every person who uses a computer and has access to the Internet has some form of digital identity. For example, the digital identity of any person shopping online consists of their email address, password, and credit card information.
Today, businesses in every industry are moving toward digital models. Traditional methods of identity verification, which require hard copies of documents and the physical presence of the individual, are no longer relevant. Digital identities can speed up the verification process and be used to access all online services, whether they're related to finances, health, or education.