Yes, they are trying to use DIDs, sidetrees, and the w3c stack. Jack is behind it so might not compete too much, but will have good funding. They have a very complex spec with a few mistakes. But most of it is OK, and boils down to typed JSON.
It offers key rotation, which nostr doesnt have. And personal storage which nostr doesnt have either.
Personal storage will be better then keeping stuff on relays, because relays dont have any guarantee to store things.