Digital identity is a product of the digital age that transcends and surpasses traditional individual identities,presented in a digital form with characteristics of uniqueness and verifiability,dynamism and cross-border nature,privacy and anonymity.Decentralized identity recognition technology,which centers on user self-control of identity data,has become the mainstream in current digital identity management and recognition.However,digital identity recognition in a decentralized context faces risks such as privacy and data security,identity theft and fraud,legal regulation,and cross-border data flow.To build a secure,reliable,efficient,and fair digital identity recognition system,it is necessary to focus on incentivizing privacy protection and strengthening data security regulations,establishing legal technical standards for digital identity,constructing a coordination mechanism that balances law and technology,and promoting legal coordination for international cooperation in digital identity.