Updates as of 1-27-2026
What is LaceID?
The Lace Identity Center will be the privacy-preserving identity layer inside your wallet. You’ll be able to create, manage, and reuse decentralized identifiers (DIDs) and verifiable credentials that prove your humanity, without revealing personal details and staying in control of your privacy. You'll stay in control of how your identity credentials are used, deciding what to share, with whom, and for how long.
This means your Lace wallet becomes more than just a place to manage your crypto and NFTs (though it will still do all that, of course). Lace will become your trusted digital pass to communities, DApps, online platforms, institutions, and more. Sounds good, right?
A first step toward practical decentralized identity on Cardano
Decentralized identity has been discussed in Web3 for years. The challenge hasn’t been the idea; it’s been making identity usable in a way that people actually want to adopt.
LaceID represents a first practical step toward bringing decentralized identity into everyday use on Cardano. Instead of treating identity as a standalone product, Lace weaves it into the wallet experience users already rely on for assets, NFTs, and everyday Web3 interactions.
This approach focuses on doing a few things well:
- Making identity reusable instead of repetitive
- Putting privacy controls in the hands of users, not platforms
- Reducing friction without sacrificing trust or decentralization
By integrating decentralized identifiers and verifiable credentials directly in the wallet, LaceID will eliminate reliance on Discord accounts, email addresses, or phone numbers as proxies for identity.
As a first mover within the Cardano ecosystem to combine self-custody and decentralized identity in this way, LaceID is setting a clear example of how privacy-preserving, standards-based identity can be designed to work in practice.
This is an early step, but an important one. It demonstrates that decentralized identity on Cardano doesn’t need to be abstract or experimental. It can be practical, user-controlled, and ready to support real communities, applications, and institutions.
Why identity belongs in the wallet
In Web3, the wallet is already the point of trust. It’s where people manage assets, approve actions, connect to applications, and verify control without sharing information with third parties. Adding identity anywhere else introduces friction, extra accounts, or new risks.
When identity lives in the wallet:
- Users stay in control of their credentials and keys
- Verification happens without creating new accounts or databases
- Trust is established through cryptography, not data collection
There’s no separate app to install, no new system to learn, and no need to hand personal information to platforms just to participate.
It also aligns with how Web3 already works. Wallets don’t just store things - they prove things like ownership, intent, and eligibility. Decentralized identity builds naturally on that foundation.
By treating the wallet as the home for identity, LaceID supports:
- Selective disclosure allows you to prove more and share less
- Reusable credentials that work across communities and apps
- Verification without surveillance or centralized custody
This is what makes decentralized identity usable at scale. Not by adding more layers, but by strengthening the one users already rely on.
Built on standards, not shortcuts
Decentralized identity only works if it’s trusted beyond a single app or platform. That’s why LaceID is built on open standards rather than proprietary shortcuts aligned with Cardano & Hyperledger Identus.
Identities and credentials aren’t locked into Lace, and they aren’t designed for a single narrow use case. They’re built to be portable, interoperable, and usable across the broader Web3 ecosystem.
For users, this matters because it avoids the usual trade-offs:
- No identity silos tied to one platform
- No opaque verification systems you can’t inspect or move away from
For communities and organizations, standards-based identity makes integration simpler and future-proof. Credentials can be issued, verified, and reused without rebuilding systems from scratch or compromising privacy.
Why do you need LaceID?
Keeping your digital identity safe can be challenging. Repetitive sign-ups, intrusive KYC, data breaches, and identity thefts can all affect your online privacy in a way they shouldn’t. LaceID minimizes the personal information shared with individual communities and platforms, while maintaining security best practices for identity verification data. Additionally, LaceID will give you:
- Privacy-first verification – prove you’re human or eligible, without oversharing.
- Reusability across apps – one digital cred for everywhere.
- Seamless experience – integrated into the wallet you know and trust.
- Future-ready – powered by Hyperledger Identus and built on Cardano.
Who is LaceID for?
The short answer is everyone 😉, but here’s a breakdown of the groups who’ll find it invaluable in preserving digital identity privacy:
- Web3 community builders who join gated Discords, online events, and DAOs with human verification (and yes, no repetitive captchas or sign-ups).
- Crypto wallet power users can manage coins, NFTs, and credentials in one place, across the Cardano ecosystem.
- Privacy-conscious newcomers can learn Web3 identity with low-risk, everyday use cases. One wallet, one identity, crypto and creds, together.
- Forward-looking institutions & platforms can issue diplomas, certifications, or KYC credentials securely.
H2: Designed for people, not just protocols
Decentralized identity is often framed as a technical problem to solve. In reality, it’s a human one.
Most people don’t want to think about standards, schemas, or cryptography. They want simple answers to simple questions: Can I join? Am I eligible? Do I trust this? And they want to do that without oversharing, creating yet another account, or handing control of their data to someone else.
LaceID is designed with that reality in mind. This people-first approach matters because identity only works if people trust it. And trust doesn’t come from complexity or speed. It comes from clarity, control, and the feeling that the system is working for you, not around you.
What’s next for LaceID
The Lace team is actively developing a proof of humanity solution designed to help Web3 communities protect themselves from scams, bots, and coordinated attacks without sacrificing privacy or accessibility.
Built for platforms like Discord, this approach allows community managers to verify that members are real, unique humans without collecting names, email addresses, phone numbers, or other personal data.
Instead of relying on captchas or centralized databases, LaceID generates privacy-preserving credentials to answer a simple question:
Is this a real person? Nothing more.
For communities, this means:
- Fewer bots and fake accounts
- Stronger protection against Sybil attacks and impersonation
- Human-only spaces that still respect anonymity and pseudonymity
For users, it means:
- No repetitive sign-ups or surveillance-based checks
- Verify your identity once through our secure partners, then reuse your credentials across communities without repeatedly sharing personal details
- Control over what’s shared, with whom, and for how long
Identity verification is provided through our trusted third-party partners.
Disclaimer: LaceID features are under development. Availability and functionality may change. This content is for informational purposes only.