In today's digital age, having a verifiable digital identity has become increasingly important as digital transactions continue to rise. However, nearly 850 million people worldwide lack an official identity according to World Bank estimates. To address this issue, Self-Sovereign Identity (SSI) is emerging as a decentralized alternative to traditional identity management systems. SSI allows individuals to have control over their digital identities and securely share them with trusted parties. This article provides an overview of SSI and its potential applications.

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Understanding Self-Sovereign Identity

SSI is a decentralised digital identity management system that utilises blockchain technology as a data registry. It enables individuals to create, control, and share their identities securely. Unlike centralised or federated identities, where control lies with the identity provider, SSI gives users complete control over their digital identities. It is designed based on guiding principles of security, controllability, and portability.
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Components of SSI

The three main parties involved in an SSI system are the issuer, holder, and verifier. The issuer cryptographically signs a credential and issues it to the holder. The verifier is responsible for confirming the authenticity of the credential using a decentralised data registry, such as a blockchain. Holders store their credentials in secure digital wallets and can share them with other parties when required. The holder can also create a presentation and share it with the verifier upon request.
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The Nitty Gritty of SSI

SSI solutions are designed to be blockchain-agnostic and adhere to W3C's specifications. Identity wallets, such as uPort and Trinsic, store and manage Decentralised Identifiers (DIDs) and Verifiable Credentials (VCs) instead of cryptocurrencies. To protect privacy, SSI solutions increasingly use Zero-Knowledge Proofs (ZKPs) to prove the authenticity of credentials without revealing the actual data. Secure communication between different SSI components is facilitated by protocols like DIDComm and CHAPI.
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Applications of SSI

SSI has the potential to revolutionise various industries. In healthcare, studies have shown how zero-knowledge proofs can selectively disclose information, such as proof of vaccination, without revealing users' identities. Land registration systems can benefit from combining blockchain-based registries with SSI for secure identity management. E-voting can be enhanced by integrating SSI-based anonymous credentials, enabling voters to prove eligibility without compromising identity. Additionally, SSI offers possibilities in finance and identity management, enabling accurate evaluation of identity claims and facilitating de-risking for lenders.
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SSI and Blockchain

While blockchain is commonly used in SSI implementations, it is not the only option. Alternatives like IPFS, public-key cryptography, and traditional Certificate Authorities can also be used. However, blockchain provides a decentralised and immutable ledger that is suitable for storing and verifying credentials, making it advantageous for SSI systems.
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Conclusion

Self-sovereign identity has the potential to transform various industries, providing secure and user-controlled digital identity solutions. However, challenges related to interoperability, scalability, and usability need to be addressed for SSI to realise its full potential in a global context. As research and development in SSI progress, it is essential to overcome these challenges and unlock the benefits of a secure and user-centric digital identity ecosystem. Learn more here.

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