Decentralized Identity: Securing Trust in the Internet of Things (IoT)
Exploring the applications of blockchain-based identity for connected systems
The Internet of Things (IoT) continues to expand rapidly, connecting billions of sensors, machines, and devices across industries. Yet every new connection introduces another point of risk. Over half of IoT devices contain known vulnerabilities, and a fifth still ship with default passwords. Each unverified device broadens the attack surface, leaving enterprises exposed to breaches that disrupt operations and compromise public trust.
Amid this growing complexity, one principle stands out: trust begins with identity. Securing the identity of every connected device provides the foundation for reliable, autonomous machine-to-machine communication. A verified identity enables cryptographic proof that a device belongs to a network and has not been compromised. Without that assurance, no security framework can maintain integrity at scale.
Why legacy systems fall short
Traditional identity and access management tools were designed for people, not machines. They cannot handle the speed, diversity, or scale of billions of connected endpoints. Fragmented standards, hard-coded credentials, and siloed vendor ecosystems prevent consistent authentication and create weak points across supply chains. Enterprises face operational overload as they attempt to manage these disconnected systems without a unified trust layer.
A decentralized model for machine trust
Self-Sovereign Identity (SSI), implemented through decentralized identifiers (DIDs) and verifiable credentials (VCs), offers a scalable solution. These standards remove dependence on a single authority and allow devices to prove their authenticity through cryptographic evidence. A manufacturer can issue verifiable credentials confirming that a device meets specific standards. When that device connects to a network, peers can instantly verify its credentials without contacting a central server.
This decentralized framework enhances accountability, streamlines lifecycle management, and establishes interoperability across vendors and sectors. From smart manufacturing and energy grids to logistics and urban infrastructure, verified digital identities strengthen automation, reduce fraud, and enable data integrity at every stage of operation.
Veridian: An open source identity platform for tomorrow
As the demand for trustworthy IoT systems increases, enterprises and governments require solutions that balance scalability with compliance. Veridian, developed by the Cardano Foundation, delivers this capability through open-source, enterprise-ready identity infrastructure. Veridian supports credential creation, issuance, and management across diverse environments, with integration into the Cardano blockchain to anchor identity events to a decentralized root of trust.
By embedding decentralized identity into IoT networks, Veridian enables real-time verification, automated credential revocation, and transparent data provenance. This foundation allows organizations to deploy secure, verifiable digital ecosystems—where machines, systems, and institutions interact with confidence.
Learn more by reading the full eBook, which explores how decentralized identity frameworks can transform security across manufacturing, utilities, logistics, and smart cities.