Cross-Chain Asset Transaction Method Based on Decentralized Digital Identity

The swift advancement of blockchain technology has improved the transfer of value and assets between various blockchain systems. Nonetheless, the differing underlying architectures of these platforms have impeded effective value transfers, leading to the development of cross-chain technology. Cross-chain transactions face complexities due to varied user identity definitions, methods, and authentication mechanisms across blockchain networks. To address these challenges, this study optimizes identity identification and authentication methods with a privacy-preserving solution for cross-chain asset transactions. This enhances the identity management mechanism, safeguarding user privacy. Initially using ring signature algorithms to anonymize user identities, the study now employs Decentralized Identity (DID) and Verifiable Credentials (VC) for unified identity identification and authentication across chains. This approach grants users control over their identities, removes blockchain barriers, and adapts to multiple scenarios. Comparative analysis includes gas consumption, transaction delays, and performance evaluations of both solutions.