DIDs are a crucial part of the decentralized identity framework, which allows individuals to create and manage their own digital identities without relying on a central authority. Unlike traditional identifiers (like email addresses or usernames) that are tied to a central issuer, DIDs are created and managed on distributed ledgers (like blockchains). They provide a way to establish a new digital identity that is secure, private, and controlled by the user. DIDs can be used in various applications, including online authentication, credentialing, and IoT device identification, ensuring that users maintain control over their personal data.