Systems and methods for using digital identity frameworks and infrastructure to access and interact with decentralized applications

A method of preparing an on-chain verifiable credential, comprising:

• claiming, by an authorized trader user interface, an authorized trader verifiable credential from a trusted entity, wherein the authorized trader verifiable credential comprises a trusted entity verifiable credential for the trusted entity and a root issuer verifiable credential for a root issuer, wherein the root issuer verifiable credential and the trusted entity verifiable credential are nested within the authorized trader verifiable credential;
• registering, by the authorized trader user interface, an authorized trader digital identifier with a digital identifier registry;
• converting, by the authorized trader user interface, the authorized trader verifiable credential from an off-chain format to an on-chain format, wherein the on-chain format comprises a flattened array of the authorized trader verifiable credential, the trusted entity verifiable credential, and the root issuer verifiable credential;
• and
• submitting, by the authorized trader user interface, a trade and the on-chain format of the authorized trader verifiable credential to a proxy smart contract;
• wherein the proxy smart contract is configured to forward the on-chain format of the authorized trader verifiable credential to a verifier smart contract, and the verifier smart contract is configured to query a digital identifier registry to verify that an authorized trader digital identifier associated with the authorized trader verifiable credential, a trusted entity digital identifier associated with the trusted entity verifiable credential, and a root issuer digital identifier associated with the root issuer verifiable credential are active, and in response to the authorized trader digital identifier, the trusted entity digital identifier, and root issuer digital identifier being active, execute the trade with a decentralized finance smart contract.

A system, comprising:

• an authorized trader interface for an authorized trader;
• a trusted entity interface for a trusted entity;
• a root issuer interface for a root issuer;
• a proxy smart contract in communication with the authorized trader interface and a decentralized finance smart contract;
• a verifier smart contract in communication with the proxy smart contract;
• a digital identifier registry;
• and
• a decentralized finance smart contract;
• wherein:
• the root issuer interface registers a root issuer digital identifier with the digital identifier registry;
• the root issuer interface issues a trusted entity verifiable credential to the trusted entity, wherein the trusted entity verifiable credential comprises a root issuer verifiable credential;
• the trusted entity claims the trusted entity verifiable credential and registers a trusted digital identifier with the digital identifier registry;
• the trusted entity interface issues an authorized trader verifiable credential to the authorized trader, wherein the authorized trader verifiable credential comprises the trusted entity verifiable credential and the root issuer verifiable credential, wherein the trusted entity verifiable credential and the root issuer verifiable credential are nested in the authorized trader verifiable credential;
• the authorized trader claims the authorized trader verifiable credential and registers an authorized trader digital identifier with the digital identifier registry;
• the authorized trader interface converts the authorized trader verifiable credential from an off-chain format to an on-chain format, wherein the on-chain format comprises a flattened array of the authorized trader verifiable credential, the trusted entity verifiable credential, and the root issuer verifiable credential;
• the authorized trader interface communicates a trade and the on-chain format of the authorized trader verifiable credential to the proxy smart contract;
• the proxy smart contract communicates the trade and the on-chain format of the authorized trader verifiable credential to the verifier smart contract;
• the verifier smart contract queries the digital identifier registry to verify that an authorized trader digital identifier associated with the authorized trader verifiable credential, a trusted entity digital identifier associated with the trusted entity verifiable credential, and a root issuer digital identifier associated with the root issuer verifiable credential are active;
• and
• in response to the authorized trader digital identifier, the trusted entity digital identifier, and root issuer digital identifier being active, the proxy smart contract executes the trade with the decentralized finance smart contract.