With data breaches becoming an increasingly prominent topic within society, businesses have begun directing resources towards enhanced security systems, while governments have seemingly attempted to grant individuals more rights over their personal data. With the development of new data management systems, organizations have the opportunity to create technologies that enhance and not endanger the privacy of data owners (Nyst et al., 2016). This paper discusses the concept of a decentralized identifier (DID) system, which shifts the control of personal data from centralized entities to the identity owners themselves. It places a focus on user data privacy by leveraging distributed ledger technology. Although a DID system presents numerous opportunities for data protection, it must first overcome a number of obstacles before replacing its centralized counterpart. This paper addresses two key challenges that DID systems face: scalability and interoperability. The proposed solutions to the scalability challenge include the implementation of a second layer protocol atop the distributed ledger, as well as a simplified user experience provided by a digital wallet application. Meanwhile, the key strategies for addressing the interoperability challenge include the use of a Universal Resolver, integration of distributed ledgers, and facilitation of compatible digital wallets and identity hubs. By addressing these challenges through collaborative efforts, developers may be one step closer to granting everyone control over their personal data.