Digital ID
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Digital ID is the latest iteration in a long history of approaches to solving the trust problem between 2 entities, which in tern could be 2 persons, computing devices or services.
Fundamentally, trust is usually established via presence of a 3rd party, in one form or another. Young children often are introduced to each other by a chain of trust of 3rd party entities which is one or more adults present.
To drive a car, traditionally a driver's licence (A physical object provided by a trusted 3rd party bearing that vouches for the person present) is required to be present on the person.
Ecommerce evolved to need trust established at multiple levels of protocol, from TLS certificates to Multi-factor authentication (more needed on MFA etc).