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Identity systems resolve credential conflicts using hierarchical validation. Base credentials (e.g., "government-issued ID") take precedence over derived ones (e.g., "employee badge"). Smart contracts enforce conflict rules, revoking dependent credentials if base ones expire. Graph databases map relationships, while consensus mechanisms (e.g., PoW/PoS) resolve disputes in decentralized networks. Users can submit appeals via decentralized arbitration, with blockchain timestamps ensuring transparency.

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