LucID Identity — A Stake-Backed, Entropy-Resistant Self-Sovereign, Decentralised Protocol

The digital world is built on a foundation of broken identity. Centralised systems have led to mass data breaches, systemic exclusion, and a loss of personal sovereignty. This paper introduces a new protocol for self-sovereign identity (SSI) designed for the modern era — one that is economically rational to trust, resistant to sophisticated attacks, and accessible to all. The solution is a stake-backed attestation model built on the BSV blockchain, where verifiable claims are secured by real economic value. I introduce several key innovations: a dynamic trust model using entropy-driven quorums to resist collusion; a robust adjudication system featuring Dual Vote mechanics and quadratic overlays to ensure fair dispute resolution; a multi-dimensional trust metric called ∆VTHB to capture the true maturity of an identity; and advanced biometric and liveness detection to defend against the growing threat of AI-driven sybil attacks. Unlike Sovrin's federated model or Worldcoin's focus on a single biometric (iris), this protocol combines open-market attestations with economic slashing and privacy-preserving palm-based sybil resistance for true accessibility and resilience. By making fraud economically irrational and providing a path to identity without reliance on traditional paper trails, this protocol offers a credible path toward a more secure, equitable, and self-sovereign digital future. This protocol is not just theoretical — it is designed for phased, simulation-validated deployment starting in 2026.