Distributed Identity for Zero Trust and Segmented Access Control: A Novel Approach to Securing Network Infrastructure

“Distributed Identity” refers to the transition from centralized identity systems using Decentralized Identifiers (DID) and Verifiable Credentials (VC) for secure and privacy-preserving authentications. With distributed identity, control of identity data is returned to the user, making credential-based attacks impossible due to the lack of a single point of failure. This study assesses the security improvements achieved when distributed identity is employed with the ZTA principle, particularly concerning lateral movements within segmented networks. It also considers areas such as the implementation specifications of the framework, the advantages and disadvantages of the method to organizations, and the issues of compatibility and generalizability. Furthermore, the study highlights privacy and regulatory compliance, including the General Data Protection Regulation (GDPR) and California Consumer Data Privacy Act (CCPA), analyzing potential solutions to these problems. The study implies that adopting distributed identities can enhance overall security postures by an order of magnitude, providing contextual and least-privilege authorization and user privacy. The research recommends refining technical standards, expanding the use of distributed identity in practice, and discussing its applications for the contemporary digital security landscape.