As the risks and issues surrounding the deployment of access management and customer identity systems increase, there is one solution proving to be popular, which is a self-sovereign identity system (SSIs). These self-sovereign identity systems include an approach toward creating a digital identity that allows individuals the ability to verify themselves by controlling information.
What’s Self-Sovereign Identity (SSI)?
Self-Sovereign Identity (SSI) is an approach that is user-centric toward digital identity by giving people and businesses complete control over their data. Therefore, SSI allows anyone to share their data easily and prove their identity reliably (i.e., everything about them, including who they are) without needing to sacrifice privacy or security.
In simple terms, SSI gives you the chance to “bring your own identity,” which is true for any information potentially that informs your core identity, for instance, your age, name, and address, to your work records, education, bank account, insurance and health data, and financial information. Also, you can use SSI for modeling people’s digital identities and for IoT and organizations as well.
In the end, SSI has promised a digital world where interactions will be worry-free and effortless. It’s the next step in the evolution of identity management, which creates a new paradigm where digital identities aren’t locked or fragmented in silos that are controlled by someone else, but will be at your disposal to share privately and securely.
Why Use Self-Sovereign Identity?
In the past couple of decades, we have witnessed the digitization process that has unfolded on a global scale and involves numerous industries. Even though the start of this process was gradual, it accelerated when smartphones emerged as that placed the digital worlds at your fingertips, and it was even more drastic when the COVID-19 pandemic gripped the world, as it forced everyone to move toward digital interactions from in-person ones.
However, it’s not a secret that there wasn’t an identity layer built when the internet came into existence, and as the world continues to grow digitally, we must confront the insurmountable issues that come with it. You can say that digitization has come with its price, such as:
Limited control over data: Only a handful of companies hold the power, which effectively lock in users and control data.
Privacy issues: As users aren’t controlling their data, there has been a rise in privacy scandals and diminished trust in data aggregators.
Compliance issues: Data must be stored and managed centrally by online service providers, which means they are open to penalties and regulatory scrutiny.
Security issues: The standard method to secure access to user data and services, especially authentication that was password-based can’t be relied upon and that has caused several data breaches on a larger scale.
Identity theft and Fraud: As there are limited identification and authentication tools that can be relied upon, there has been a rise in identity theft and other types of fraud. Online marketplaces and service providers have been struggling to ensure that transactions are trustworthy.
Cumbersome user experience: There are several authentication methods that users are forced to use, including different passwords, and the online identification processes are lengthy.
These problems can be solved by SSI as users will have more control over their data, and they can share that data securely, privately, seamlessly, and whenever they want. The potential for generating value is immense as individuals, governments, and businesses can all benefit from it.
Benefits for People
SSI offers several great benefits to people, which ensure that they will be able to take advantage of having their data in their own hands. Here are some of the benefits that SSI gives to people:
User experience: SSI ensures that people can share their data effortlessly with others. The standard method for sharing dat...
