Within the Internet, user accounts became essential anchor points of data. In traditional account management, these user entities are mainly controlled by centralized platforms, often leading to numerous issues, including data breaches and privacy violations. As a counterpart, decentralized Web3 accounts have transformed how information can be stored, shared, and monetized, leading to user-centric control and security within the last decade. This paper analyzes the evolution of identity handling on the Internet and the pressing need for a dedicated identity protocol. It critically examines the influence of centralized platform policies and legal challenges regarding user interactions. In conjunction with the findings, the article portrays the fundamental architecture for secure and privacy-conserving management used to embed fair relationship models and shows future opportunities.