Unlike in case of Web2 ,Web3 enables self-soverign identity (SSI) model which allows users to control their digital identity. Users in web3 can decide what information to share and with whom using Cryptography and digital wallets.
Trustless Identity Claims:
In Web3 users use Verifiable Credentials(VCs) which allows them to prove claims with minimal disclosure of the data. These credentials are cryptographically signed by the governments, banks.They are like certificates in Web3.
It is used when the provenance is necessary.
Ex- User can use their VC to proof they are above 18 without revealing exact birthdate.Zero-Knowledge Proofs (ZKPs) :
In web3 Zero-knowledge proofs are used to prove a claim without revealing the private data. Mathematical proofs are used to proof users identity without exposing the real data.
It is used when privacy and security of the data is non-negotiable.Decentralized Identifiers(DIDs):
DIDs are globally unique identifiers. They can be used when the developers needs a unique identity which can be used in other platforms for recognition. DIDs are tamperproof.
In web3 , a user's identity does not rely on centralized platforms .