A Note on the Blockchain Trilemma for Decentralized Identity: Learning from Experiments with Hyperledger Indy

TL;DR

This paper investigates the blockchain trilemma in decentralized identity systems by empirically measuring Hyperledger Indy's transaction latency, revealing scalability issues that impact security and decentralization.

Contribution

It provides a case study with empirical experiments on Hyperledger Indy, highlighting scalability challenges and their effects on security and decentralization in decentralized identity.

Findings

Hyperledger Indy handles over 45,000 transactions in AWS environment.

Scalability limitations affect security and decentralization properties.

Transaction processing bottlenecks constrain credential verification and non-repudiation.

Abstract

The challenge to establish and verify human identity over the Internet in a secure and privacy-respecting way is long-standing. In this paper, we explore the blockchain trilemma of scalability, security, and decentralization in the context of the Trust Registry: a root of trust for a decentralized identity scheme that enables read and write access to shared records and is tamper-resistant. We make a case study of Hyperledger Indy -- an open-source technology bespoke for decentralized identity -- and conduct two empirical experiments to measure the latency of more than 45,000 transactions in the naturalistic environment of Amazon Web Services. We conclude that issues of Trust Registry scalability have multiple facets. While Hyperledger Indy captures data useful to underpin a decentralized identity scheme, the knock-on effect of its scalability limitations may indeed place constraints on properties of security and decentralization. The current credential verification process relies on transaction processing by a ledger with transaction processing bottlenecks, which may constrain the ideal of non-repudiation.