This course systematically explains how Decentralized Identifiers (DIDs) and Verifiable Credentials are created, verified, and applied on-chain, further exploring how these reshape the trust framework in Web3. The content covers the structural evolution of identity from Web2 to Web3, the technical architecture and standard systems of DIDs, the trust models and privacy mechanisms of Verifiable Credentials, as well as the practical applications of on-chain identity in DeFi, DAOs, compliance, and cross-platform scenarios. The course not only focuses on how identity works but also emphasizes why it is important, helping you understand how identity transforms from an entry tool into a sustainable, manageable, and verifiable trust foundation; ultimately becoming an indispensable component of future Web3 infrastructure.