Why Decentralized Identifiers Will Be Built on WaaS Infrastructure

DIDs promise a portable, self-sovereign identity. But today's wallets like MetaMask and Phantom are chain-specific, forcing users to manage dozens of keys. WaaS (Wallet-as-a-Service) platforms like Privy, Dynamic, and Capsule abstract the chain, providing the unified key management layer DIDs require to be practical.

• Key Benefit 1: Single sign-on across any EVM, SVM, or non-EVM chain.
• Key Benefit 2: Eliminates seed phrase friction, the primary DID adoption blocker.

A DID is useless without a secure, programmable agent to sign verifiable credentials. WaaS providers embed session key logic (like those in ERC-4337 smart accounts) directly into the wallet layer. This turns the wallet into an active DID controller, not just a passive key store.

• Key Benefit 1: Enables automated, gasless attestations for protocols like EAS or Verax.
• Key Benefit 2: Allows for complex, time-bound delegation (e.g., a gaming DID that can sign for 8 hours).

Regulations like the EU's eIDAS 2.0 and MiCA mandate verifiable identity. Meanwhile, DeFi and on-chain credit (Goldfinch, Cred Protocol) need sybil-resistant reputation. WaaS is the only infrastructure that can bundle KYC/AML flows from providers like Persona or Circle and mint the credentials directly to a user's portable DID.

• Key Benefit 1: Compliance becomes a composable feature, not a walled garden.
• Key Benefit 2: Unlocks Trillion-dollar RWAs and compliant DeFi pools.

DID methods (like did:ethr or did:key) need a reliable resolver. A WaaS backend, with its always-on, multi-chain RPC networks (comparable to Alchemy, QuickNode), is the perfect high-availability service to resolve DIDs to their current on-chain state and associated Verifiable Credentials.

• Key Benefit 1: Provides >99.9% uptime resolution, critical for enterprise use.
• Key Benefit 2: Caches and indexes credential graphs, enabling instant reputation checks.

Building DIDs directly on-chain is a dead end due to prohibitive gas costs and user-hostile key management. WaaS providers like Privy, Dynamic, Turnkey abstract this complexity, offering a ~90% reduction in user drop-off by handling key custody, session management, and multi-chain state.

• Key Benefit 1: Enables gasless onboarding and transactions, unlocking mainstream adoption.
• Key Benefit 2: Provides a unified, portable identity layer across any EVM, SVM, or Move-based chain.

Traditional identity systems (e.g., OAuth, social logins) create honeypots of user data. WaaS infrastructure enables zero-knowledge DIDs, where proofs of reputation or credentials are verified without exposing raw data. This aligns with frameworks like Iden3 and Polygon ID.

• Key Benefit 1: Enables compliant, selective disclosure (KYC, credit scores) without surveillance.
• Key Benefit 2: Creates a new market for verifiable credentials, moving trust from platforms to cryptographic proofs.

DIDs transform wallets from simple key stores into programmable identity endpoints. WaaS providers become identity RPC layers, monetizing through authenticated API calls for on-chain actions, social graphs, and reputation checks. This mirrors the Alchemy, Infura playbook for data.

• Key Benefit 1: Generates recurring revenue from developer usage, not speculative tokenomics.
• Key Benefit 2: Creates defensible moats via network effects of aggregated identity graphs and developer tooling.

A DID locked to one chain or app is worthless. WaaS infrastructure, by design, provides chain-agnostic signing and state synchronization. This is the critical plumbing for cross-chain intent systems like UniswapX, Across, and omnichain apps using LayerZero or CCIP.

• Key Benefit 1: DIDs become portable assets, not walled garden profiles.
• Key Benefit 2: Enables complex, multi-step intents (e.g., "swap on Arbitrum, lend on Base") under a single user session.

Centralized custodians (CEXs) are regulatory targets. WaaS providers using MPC/TSS or smart account custody (e.g., Safe{Wallet}) architecturally avoid being classified as custodians. The DID and assets remain user-controlled, with the WaaS as a non-custodial service provider.

• Key Benefit 1: Offers a compliant path that avoids the SEC's "investment contract" framework.
• Key Benefit 2: Shifts regulatory risk from the infrastructure layer to the application layer, where it belongs.

DIDs on WaaS enable non-human entities—DeFi bots, AI agents, DAO delegates—to have verifiable, fee-paying identities. This unlocks autonomous economic networks where agents can trade, govern, and contract using their own credentials and gas wallets.

• Key Benefit 1: Creates a new substrate for Agentic Economics, a potential $10B+ market.
• Key Benefit 2: Turns every automated strategy into a first-class, accountable on-chain citizen.