Decentralized digital identity (DDID) is the next phase in designed-for-privacy identity and access management (IAM). It offers the potential to transform human and machine verification, credential presentation, authentication claims, and other transactions. While DDID has been around for about four years, it is finally gaining market momentum. This report describes the components of the DDID ecosystem, shows how these components interact, and reassesses DDID’s benefits for security and risk management. It also provides examples of DDID production ecosystems and offers deployment recommendations.