What is digital identity?
The digital information represents an individual in the virtual world, essentially unique, verifiable, and non-transferable. It is mainly used as an online identification test.
Managing your digital identity is in the hands of centralized entities such as online service providers, banks, and governments.
Reflect on how you access certain services with your Google, Microsoft, or Meta account or an account related to a domain or a digital certificate.
What would happen if the entity that holds them decides to block it or is hacked? Have you ever thought about it?
It could indeed mean a problem and a serious one.
This concept is nothing new, Enrique Dans, in his blog already commented on this concept in March 22nd :
This decentralized digital identity (DDID) is one of the basic foundations on which the idea of the so-called Web 3 is based: an environment in which there is no longer dependence on external repositories, and in which everyone manages their own data.
This centralization has several risks, with exposure to hacking and lack of personal control over one’s own information being two of the most notable. In this scenario, Self-Sovereign Identity (SSI), or Sovereign Identity, or also called Decentralized Digital Identity (DIDD) emerges as an encouraging solution. Through Web3 technologies such as blockchain, SSI allows individuals to have full control over their own digital identity, promoting decentralized and secure management.
What are the risks of a Centralized Identity?
- Vulnerability to Attacks: Centralized databases are attractive targets for cyber-attacks. A single security breach can result in the exposure of sensitive data of millions of individuals.
- Lack of Control and Privacy: Users have little or no control over how, when, and by whom their information is accessed or shared. This lack of autonomy can result in an erosion of personal privacy.
- Inaccuracies and Delays: Centralized entities may be slow to update information or correct inaccuracies, which could result in significant inconvenience to individuals….
Use of Blockchain in SSI
The blockchain provides a solution for digital identity management, allowing individuals to have control and sovereignty over their own information. The use of blockchain eliminates the need to rely on third parties, improving security and reducing the risk of hacks.
Different Digital Identities in Blockchain:
- Avatars: Digital representations that exist as NFTs, providing a unique identity in the metaverse.
- Web3 domains: NFTs representing blockchain addresses, simplifying interaction with the blockchain.
- Community Memberships: NFTs that provide access to exclusive communities and monetization opportunities.
- Metaverse Properties: Tokenized objects that are part of the digital identity in the metaverse, such as virtual land, accessories and more.
- Sensitive Information: Medical records, driver’s licenses, and academic degrees can be protected and shared efficiently through digital identities on blockchain.
Use blockchain to manage digital identity, keeping private keys secure in hardware cold wallets such as Ledger to ensure control and security of digital identity.
I recommend you to read this article by Ledger where you can learn more about this.
SSI initiatives currently available
- Sovrin:: A decentralized global identity network, powered by blockchain technology, that provides the infrastructure for SSI.
- MIdy:: Provides software solutions that enable organizations and individuals to interact with self-sovereign identity technologies. (formerly evernym)
- Veramo: Provides a platform and protocol for self-sovereign identity management on the Ethereum blockchain. (formerly Uport)
- Ontology: A high-performance blockchain network that includes a decentralized identity framework and data management solutions.
- Civic: Offers a secure digital identity wallet that gives users control over their personal information.
- Veres One: An open-source blockchain protocol designed specifically for decentralized identity management.
- SelfKey: A blockchain-based identity management platform that allows individuals and organizations to control, verify, and manage their digital identity.
- Trinsic: Offers a platform that facilitates the creation, verification, and sharing of digital credentials using SSI technology.
- Animo: The goal of this company is to drive the global transition to a decentralized identity.
An exciting future that gives us back ownership of our digital identity
With the growth of blockchain technology and digital privacy awareness, SSI adoption is likely to accelerate. The hypothesis is that, in the near future, SSI will not only provide a robust layer of security and control over digital identity but will also enable new forms of online interactions, facilitating verifiable transactions and processes without intermediaries.
ISS could be the catalyst for a new paradigm where trust and autonomy are the norm, not the exception. Organizations and platforms that adopt SSI could enjoy enhanced trust from their users, while individuals could interact in the digital space with renewed confidence and trust.
The challenge lies in how organizations and society as a whole will take the necessary steps to adopt and promote SSI, leaving behind a centralized identity management model that is prone to the risks I have discussed above
Have a good week!
Some references
