Digital identity systems have undergone a major transformation from centralized models to decentralized blockchain-based frameworks, driven by the integration of AI technologies. Initially dominated by corporate solutions like Microsoft Passport, the landscape now includes blockchain projects such as ENS, Polygon ID, and Civic, which are advancing self-sovereign identity (SSI) frameworks. Major tech companies like Microsoft, IBM, and Google have contributed to standards like OpenID and OAuth, enhancing interoperability and security. Governments and private entities are also developing electronic identity (eID) programs, with initiatives such as the EU’s EUDI Wallet and Japan’s Mizuhiki Suite. Additionally, AI agents are being equipped with digital identities, enabling autonomous transactions through projects like AGNTCY and Coinbase’s x402. Despite these advancements, challenges such as data centralization, key loss, and identity fraud continue to pose significant risks.