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Prisma DIDs – Executive Summary

Version: 1.0 Date: December 2025 Status: Production-Ready Specification


Overview

Prisma DIDs is a Cardano-native decentralized identity system that enables self-sovereign identity and verifiable credentials using existing Cardano wallets. The system provides W3C-compliant DIDs and privacy-preserving credentials at a fraction of the cost of existing solutions.


Problem

Current decentralized identity solutions for Cardano face significant barriers:

ChallengeImpact
Heavy InfrastructureExisting methods (e.g., did:prism) require dedicated nodes and backend services
Complex IntegrationSpecialized SDKs and complex setup processes
Centralized DependenciesResolution often relies on centralized services
High CostsSmart contract-based approaches have 10-100x higher transaction fees

Solution

Prisma DIDs leverages Cardano’s native capabilities to provide a lightweight, accessible identity layer:

Core Architecture

┌─────────────────┐ ┌─────────────────┐ ┌─────────────────┐ │ CIP-30 Wallet │ ──▶ │ Cardano Chain │ ◀── │ Prisma Resolver │ │ (User Control) │ │ (Metadata Layer)│ │ (Verification) │ └─────────────────┘ └─────────────────┘ └─────────────────┘ │ ▼ ┌─────────────────┐ │ IPFS │ │ (DID Documents) │ └─────────────────┘

Key Differentiators

FeaturePrisma DIDsTraditional Solutions
Cost per Operation0.17-0.25 ADA ($0.10-0.15)$1-10+
InfrastructureWallet + IPFS + lightweight resolverDedicated nodes, backends
Time to IntegrateMinutes (SDK import)Days to weeks
Wallet SupportAny CIP-30 wallet (Eternl, Lace, Nami, etc.)Often proprietary

Technical Approach

DID Method: did:cardano

DIDs are derived from Cardano stake addresses, providing:

  • Persistence: Stake addresses remain constant across wallet operations
  • Security: Native cryptographic binding via stake key signatures
  • Interoperability: Standard bech32 format (did:cardano:stake1u9...)

On-Chain Registry

All DID and VC events are stored as CIP-20 transaction metadata:

LabelPurpose
L_DID (199674)DID lifecycle: create, update, revoke
L_VC (199675)VC anchoring: issue, validate, revoke

Verifiable Credentials

Three credential formats supported:

FormatPrivacy LevelUse Case
SD-JWTSelective DisclosureStandard credentials with field-level privacy
Ed25519Full DisclosureSimple attestations, low overhead
BBS+ (planned)Unlinkable PresentationsMaximum privacy, zero-knowledge proofs

Revocation: SD-JWT credentials use the jti (JWT ID) as the on-chain identifier, enabling revocation checks regardless of which claims are disclosed in a presentation.


Standards Compliance

StandardImplementation
W3C DID Core 1.0 Full compliance
W3C VC Data Model 2.0 Full compliance
IETF SD-JWT Selective disclosure
CIP-10/20/30 Cardano integration

Use Cases

Primary: Contribution Credentials

The initial deployment targets Action Learning Journey (ALJ), where organizations issue verifiable credentials for:

  • Learning module completions
  • Project contributions
  • Skill attestations
  • Community participation

Broader Applications

DomainApplication
EducationCertificates, course completions, skill badges
EmploymentWork history verification, reference attestations
GovernanceVoting eligibility, delegation credentials
Supply ChainProduct authenticity, certification chains

Cost Analysis

OperationEstimated Fee
DID Create0.17-0.20 ADA
DID Update0.18-0.22 ADA
DID Revoke0.17-0.20 ADA
VC Anchor0.17-0.20 ADA

Monthly estimate (100 DIDs, 500 VCs): 115 ADA (70at70 at 0.60/ADA)


Security Model

ThreatMitigation
DID HijackingOnly stake key holder can sign events
Event ForgeryEd25519 signatures verified on resolution
Chain TamperingBlockchain immutability + prev pointer chain
Replay AttacksVersion numbers prevent replay
Credential ForgeryOn-chain anchoring + issuer DID verification

System Architecture

Per the technical specification, the system separates global infrastructure from forkable components:

Global Infrastructure (Prisma-operated)

ComponentPurposeScope
DID DashboardUniversal DID managementAll Cardano users
DID IndexerDID resolution and validationAll did:cardano identities

Forkable per Organization

ComponentPurposeScope
VC InterfaceCredential issuance/verificationPer organization
VC IndexerVC status and revocation lookupsPer organization

This separation enables:

  • A single, shared DID infrastructure for all Cardano users
  • Organization-specific credential systems with custom schemas and indexers
  • Decentralized VC ecosystems without relying on Prisma infrastructure

Documentation

DocumentDescription
ArchitectureComponent model and forkable infrastructure (v1.6.2)
Technical SpecificationFull normative specification
Cardano IntegrationCIP-10/20/30 integration details
Indexer APIDID and VC indexer REST reference
ADR: CIP-68 vs MetadataArchitecture decision record
Auth & Access ExamplesPropagate and Docs pilot patterns

Contact

Project: Prisma DIDs Repository: prisma-dids 


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