The Wiki Definition is as Follows:
A digital identity is information on an entity used by computer systems to represent an external agent. That agent may be a person, organisation, application, or device. ISO/IEC 24760-1 defines identity as `set of attributes related to an entity'.
Enabling "The Outside in" Customer Experience:
Imagine if there were preferences of all your customers known and available to all organizations. Assuming that the customer could control the level of intimacy, organizations could actually know enough to delight an individual customer. This would be an additional level of usefulness beyond just customer journey analysis and could lead to behavior analysis to help customers of all types cope and lead to delight in many circumstances and moods.
Sensing State Through Things:
If all sensors, controllers, software and software agents would have a unique and standard identification, they could talk to each other and collaborate on decisions and work to support people organizations and things. As digital identity evolves things could dynamically collaborate and bid on work itself in an intelligent way guided by policies, rules and constraints.
Sensing Context Through Relationships:
As organizations, people and machines interact in patterned relationships, beneficial outcomes and relationships can emerge into better practices mined from real interactions over time. Patterns of success and possibility can tracked through emerging relationships and rules and constraints could merge for optimal performance over time.
Security of Identities:
One of the most crucial corner stones of a digital identity is air tight security. The identity and associations must be kept save and be unhackable. For people bio-metric authentication seems to be gathering steam, but it might require several methods to be foolproof.
Secure Exchange within Relationships:
The banking industry along with government bodies are working towards free exchange through secure means. At the moment, Blockchain looks real promising for very secure exchange that is almost unhackable by the nature of the number of computer cycles it takes within a short time frame.
As much as it bothers me, it seems that digital identity is eventual with all of it's blessing and potential for risk. I just hope they don't implant us with chips like the government has suggested. For digital to be truly successful we will be a secure and rich digital identity.