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A digital identity is data stored on computer systems relating to an individual, organization, application, or device. For individuals, it involves the collection of personal data that is essential for facilitating automated access to digital services, confirming one's identity on the internet, and allowing digital systems to manage interactions between different parties. It is a component of a person's social identity in the digital realm, often referred to as their online identity.
Digital identities are composed of the full range of data produced by a person's activities on the internet, which may include usernames and passwords, search histories, dates of birth, social security numbers, and records of online purchases. When such personal information is accessible in the public domain, it can be used by others to piece together a person's offline identity. Furthermore, this information can be compiled to construct a "data double"—a comprehensive profile created from a person's scattered digital footprints across various platforms. These profiles are instrumental in enabling personalized experiences on the internet and within different digital services.[1][2]
Should the exchange of personal data for online content and services become a practice of the past, an alternative transactional model must emerge. As the internet becomes more attuned to privacy concerns, media publishers, application developers, and online retailers are re-evaluating their strategies, sometimes reinventing their business models completely. Increasingly, the trend is shifting towards monetizing online offerings directly, with users being asked to pay for access through subscriptions and other forms of payment, moving away from the reliance on collecting personal data.[3]
Navigating the legal and societal implications of digital identity is intricate and fraught with challenges. Misrepresenting one's legal identity in the digital realm can pose numerous threats to a society increasingly reliant on digital interactions, opening doors for various illicit activities. Criminals, fraudsters, and terrorists could exploit these vulnerabilities to perpetrate crimes that can affect the virtual domain, the physical world, or both.[4]