In today’s digitalized world, whether public or private, centralised or decentralised, there is a common denominator for all – a need for digital trust. Despite all the technological advancements, there is still no simple, touchless, and safe way to change basic personal data such as address over the internet. Digital trust is currently predicated on constant check-ups – which although a tedious task, cannot be done away with. For respite, we need a way to move our personal information away from potentially hackable databases and a way to limit vulnerabilities, like passwords and usernames. In simple words, we need SSI.

SSI to simplify!

The concept of self-sovereign identity (SSI) offers a new method of creating, storing, and using digital identity and its related attributes to enable addressing digital identity concerns effectively. SSI is based on global standards and is inter-operable in its application across sectors; it can be used everywhere, from banking to metaverse, travel to healthcare. SSI certainly is on the extreme end of the digital identity spectrum with unwavering focus to put control back in the hands of the user. It can also be perceived as a jackpot win for digitally enabled businesses, which is set to unlock trillion-dollar market opportunities in the near future. As SSI is adopted, the ways in which companies do business may transform significantly.

Key takeaways – Counting our credits!

Today, numerous Digital Identity programs are running on a public and private blockchain that effectively implements SSI to ensure privacy and security and grant complete user control by design. These Digital Identities are being leveraged for various applications such as providing proof of existence, data access and control, transparency, persistence, identity portability, interoperability, minimalist architecture, and complete data protection ability.

The use cases under this system are numerous.

Strong data privacy and security characteristics are embedded into self-sovereign identity implementations at the distributed ledger layer, which stores decentralized identity (DID) information, and the communication layer where identity wallets and cryptographic messaging reside. These characteristics facilitate compliance with some of the most stringent data protection laws like the European Union’s General Data Protection Regulation (GDPR) and California’s Consumer Privacy Act (CCPA). Another important use case is the management of the refugee population and ensuring their data security. The decentralized nature of SSI prevents user account data from accumulating in honeypot environments. As such, only individual accounts are at risk of getting hacked into, rather than millions of accounts, as might be the case with centralized- and federated-identity systems.

From a consumers’ standpoint, the benefits are countless starting right from secured communications, the ease of password-less authentication, quick acceptance and authentication of KYC details, storing digital certificates, receipts, and healthcare credentials, etc.

Globally, SSI technology is expected to bring in new opportunities, especially to underserved populations. According to the World Bank, there are one billion people in the world without official proof of identity, and one in two women in low-income countries lack an ID, which inhibits their ability to do things like, obtain government services, enroll in school, and open bank accounts. SSI is forecasted to be a more democratic option for consumers considering the systems are decentralized and all participants are treated equally.

SSI and Blockchain – Helping us own our ‘own’ digital identity!

The current pace of digital change requires new solutions to curb the increased prevalence of cyber-frauds, while concurrently ensuring consumer privacy, business integrity, and security. Here, the inter-mingling of SSI principles and blockchain come into play. They are transforming Digital Identity Management by mitigating cybersecurity with enhanced focus on balancing user self-advocacy and accurate digital identity verification. While SSI provides a framework to establish trusted design architecture and data principles, blockchain provides the operating engine that ensures trust through cryptography, decentralization, consensus, and self-executing smart contracts.

As we look into the future of digital identity, SSI principles with blockchain have an immense record of success by bringing together stakeholders to create a mutually beneficial network. The use cases will continue to increase in number while the global identity landscape shifts to wider acceptance and a better understanding of the benefits, yielding the key to a more secure and convenient digital identity ecosystem for all.

The author is Chief Digital Services Officer, Tech Mahindra