A method for validating authenticity of identity claims of one or more communicating entities in an online transaction over a network is disclosed. The method includes extracting identity information of the first communicating entity by the second communicating entity during online transaction and prompting a client to provide a unique resource name of the first entity. Further, the method includes validating the identity information extracted from the first entity by checking identity information already registered in a registry. Later the method includes authenticating the identity claims of the first entity based on the validation results. The method also includes steps for registering identity information of the first entity within the registry.