Glossary

This glossary contains essential terms and concepts central to Web5 and DIOM:

---

Anchoring The process of recording a cryptographic hash of data (e.g., DID Documents) on a blockchain to ensure immutability and verifiability. Used in DIOM to anchor DIDs to Bitcoin via the ION protocol.

Arweave A decentralized, blockchain-like storage system for permanent data storage. In DIOM, Arweave is used to store immutable identity metadata and historical credential records.

Batching A technique for bundling multiple DID operations (e.g., creation, updates) into a single blockchain transaction, optimizing scalability and reducing costs. Commonly used in ION for anchoring operations on Bitcoin.

CID (Content Identifier) A unique cryptographic hash used in decentralized storage systems like IPFS to reference data. CIDs ensure that referenced data is immutable and verifiable.

Credential Issuance The act of creating a Verifiable Credential tied to a user’s DID, signed by a trusted issuer. DIOM’s smart contracts facilitate credential issuance workflows.

Cross-Chain DID Mapping The process of associating DIDs anchored on Bitcoin with their operational counterparts on Ethereum. DIOM uses smart contracts to maintain a consistent mapping between these identities.

Cross-Chain Synchronization A process ensuring consistent identity operations between Bitcoin’s DID anchoring and Ethereum’s smart contract layer. Validators in DIOM’s Web5 Identity Matrix maintain this synchronization.

Decentralized Identifier (DID) A globally unique, cryptographically verifiable identifier that enables self-sovereign identity. DIDs are anchored on Bitcoin through ION and operationalized on Ethereum in DIOM.

Decentralized Storage Distributed storage systems like IPFS, Arweave, and Filecoin, used to store off-chain identity metadata and Verifiable Credentials. DIOM uses these systems to ensure scalability and data ownership.

DID Document A JSON document associated with a DID that contains cryptographic keys, service endpoints, and metadata necessary for verification and interaction.

DIOM (Decentralized Identity and Ownership Matrix) A platform that brings Web5 principles to Ethereum, enabling decentralized identity through DIDs and Verifiable Credentials. DIOM combines Bitcoin’s security, Ethereum’s programmability, and decentralized storage systems.

Identity-Based Access Control (IBAC) A mechanism that uses DIDs and Verifiable Credentials to enforce access control policies. For example, DIOM enables gated access to DeFi pools or DAO votes based on identity credentials rather than wallet balances.

ION (Identity Overlay Network) A decentralized, permissionless DID system built on Bitcoin. ION anchors DID operations (creation, updates, deactivation) to the Bitcoin blockchain in a scalable manner.

IPFS (InterPlanetary File System) A decentralized file storage and sharing protocol that uses content-based addressing (via CIDs). In DIOM, IPFS stores DID metadata and credential data for off-chain reference.

Layer 2 Scaling Ethereum-based solutions like zkSync and Optimism that reduce transaction costs and increase throughput for decentralized identity operations.

Mechanics in Detail The underlying processes in DIOM’s Web5 Identity Matrix, including validator staking, cross-chain synchronization, and slashing mechanisms to ensure trustless operations.

Selective Disclosure A privacy-preserving mechanism that allows users to share only specific data attributes or claims without revealing the entire dataset. Used in DIOM for credential verification.

Self-Sovereign Identity A decentralized identity model where users fully own and control their digital identities without relying on centralized authorities.

Slashing A penalty mechanism in DIOM’s validator network where misbehaving or underperforming validators lose a portion of their staked $DIOM tokens.

Validator Nodes Entities in DIOM’s Web5 Identity Matrix responsible for synchronizing identity operations between Bitcoin and Ethereum, maintaining data consistency, and ensuring system integrity.

Verifiable Credential (VC) A cryptographically verifiable data structure tied to a DID that allows users to prove claims (e.g., DAO membership, eligibility) while preserving privacy.

Web5 A decentralized identity-first framework designed to address data ownership and control. Web5 combines the trustless principles of Web3 with the usability and scalability of Web2, emphasizing self-sovereign identity and privacy.

Web5 Identity Matrix A validator-driven network in DIOM that synchronizes identity operations across Bitcoin and Ethereum, ensuring data consistency and trustless validation.

zk-SNARKs Cryptographic proofs that enable users to prove claims without revealing the underlying data. DIOM uses zk-SNARKs for privacy-preserving credential verification and identity workflows.

zkSync A Layer 2 scaling solution for Ethereum that optimizes transaction throughput and cost efficiency. In DIOM, zkSync supports scalable identity operations and credential management.