Understanding Internet Identity: Exploring its Functionality and Operation

Passwords have long been a hassle for daily online logins, even with the help of password managers. However, the DFINITY Foundation’s Web3 experts are developing a promising alternative called Internet Identity (II), which has the potential to transform online security. 

Internet Identity is a Web3 service that enables users to create a secure “anchor” for their devices, allowing them to log in to compatible services without using passwords. Instead, it utilizes a chip embedded in modern devices to generate disposable passkeys protected by Chain Key cryptography.

The concept behind Internet Identity is to provide a fast and secure way to authenticate oneself when accessing services. It aligns with other Web3 concepts, such as the ability to create multiple online identities, which explains its name. In addition to enhancing security, Internet Identity also offers benefits like hiding one’s digital footprint and protecting against identity theft. All of this is made possible through the DFINITY Internet Computer blockchain project.

To understand how Internet Identity works, users create an anchor identity embedded in the Internet Computer blockchain and associate their devices with it. These devices utilize a specialized TPM chip to generate hidden passkeys for signing in to Web3 services and decentralized applications (dapps).