In June 2025, researchers uncovered a monumental leak of over 16 billion login credentials, revealing the stark vulnerabilities of traditional identity systems. This leak resulted from years of infostealer attacks, leaving many accounts still accessible. Major platforms, including Google and Facebook, were affected, highlighting the dangers of password reuse and session token exposure. Existing security recommendations, such as using unique passwords and two-factor authentication, have proven insufficient against increasingly sophisticated breaches. Consequently, there is a growing demand for passwordless authentication via blockchain technology, which offers self-sovereign digital identities stored on decentralized networks. Blockchain identity solutions promise to eliminate central points of failure, minimize data exposure, and enhance security with tamper-resistant credentials. While some efforts, like the European Union’s secure digital diplomas and various startups focusing on decentralized identities, are underway, challenges such as user experience, regulatory compliance, and platform integration remain. Ultimately, for blockchain identity management to achieve widespread adoption, a concerted effort is needed across various sectors, driven by legal clarity and user-friendly solutions.

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