You probably haven’t felt reassured by a password recently. Because data breaches are becoming more common, there’s a chance you repeat usernames and passwords or often get stuck in the sign-in process. It’d be great if controlling your personal data could be as easy as controlling your house keys, without the help of tech companies. It examines the ways SSI, blockchain and digital credentials will make achieving better security, greater privacy and more control possible for users in the future.
Why Centralized ID Doesn’t Work Well?
Identity under one roof frequently becomes a control problem.
With a main identity system, you can’t manage your own data directly. These guidelines decide how you save and handle your data, who can use it and what happens with it. It’s the same as giving away your online life and hoping nothing unexpected happens.
Main Problems Related to Centralized Identification
- When you use apps, you don’t always get to choose which data is used and who sees it. Those in charge of running the system always hold the power.
- Often, you wind up sharing more about yourself than you like. Information that needs to be kept private may not be protected.
- Different nations, different rules for businesses. Compliance is hard in the case where your data is sent outside your own country.
- One central authority: Should the main authority fall, your identity is not safe. If the network is down, you can’t access your money at all.
- Some users miss out on these systems because they cannot use or access them.
Problems Related to Operation and Security
- Taking care of and protecting centralized ID systems ends up being very costly.
- One weak pointif any single part goes down, the entire thing fails.
- People don’t often see or know how their data is handled.
- The issue of interoperability has to be handled, too. Having all your ID information in one place often prevents you from using that data on different systems. Because of these issues, it’s clear that the standard digital identity model is becoming dated.
Building today’s digital identity requires the use of blockchains, DIDs and VCs.
Getting to know the four main elements of Self-Sovereign Identity (SSI)
How we use digital identity is evolving more quickly than before. Now, you don’t have to trust large tech companies with your personal information. In fact, new advances are increasing your ability to control and secure your data.
1. Decentralized Identifiers is the abbreviation for DIDs.
Every DID is a single, privacy-centric identifier.
There isn’t one particular company or government that runs them.
You are in charge of who you are. You can’t lose it unless you give it up and no government can take it from you.
2. VCs which are Verifiable Credentials
A VC confirms online facts about you such as your education or employment license.
Deciding on your information is your choice and you can pick who sees it.
Shopping apps focus on showing only the info needed to help you trust the service.
3. Blockchain Technology
Blockchain relies on cryptography to confirm, validate and save people’s credentials.
If information is placed on the ledger, it cannot be edited afterwards.
Working by Industry Standards and with Open Innovation
In 2014, the Sovrin Foundation and, in 2016, W3C with Verifiable Credentials created the framework for how information sharing across organizations should work safely and smoothly. Hyperledger Indy and Hyperledger Aries (from 2018, providing advanced Self Sovereign Identity) help developers create exciting new developments.
A digital ID built on DIDs, VCs and blockchain is safe, private and unique to you.
Digital Credentials Outside Classrooms: SSI Wallets Explained
Exploring What SSI Wallets Are
You need digital certificates to show your skills, education and who you are these days. An SSI wallet, short for self-sovereign identity wallet, is a place where you can handle digital badges, certificates and even digital signatures. You can store your passwords securely, easily share them and have them anywhere you have your wallet. No matter what device or platform you use, your account isn’t at risk of being locked out.
The reason for industries to use SSI
- Innovation in finance means quicker, safer and more secure onboarding for customers.
- Healthcare: Fair sharing of health information, suppression of fraud.
- A simple and single approach to public services and benefits is what governments offer.
- Degrees and achievements: It only takes me a little time to check the authenticity.
All these industries depend on verified credentials for a proper and safe way to verify identity. The rise of privacy-focused SSI adoption in 2020 was due to the impact of COVID-19 which pushed digital solutions into popular use.
Blockchain Helps Protect Our Privacy and Control.
SSI wallets rely on blockchain to give you detailed access to your personal information. You get to pick out what you want to share, who you want to share it with and how long to do so. Your data is protected from identity theft, kept intact and you can be sure of the source document with digital signatures.
Because of data portability and interoperability, SSI wallets are useful every day for people moving between different places and platforms. After Rebooting the Web of Trust (RWoT) was launched in 2017, things have progressed to allow for easier setup, voting, legal work and more education.
Passwords are no longer a secure way to protect your Digital ID.
There’s a big difference from simply using a password to having full control over your digital identity.
The beginning of digital identity involved just usernames and passwords. You likely had many responsibilities at the same time, didn’t you? It looked straightforward, but it wasn’t hard to break. In recent years, a common practice became having one company control all your login details. After that came federated identity, making it possible to use just one account with several different services. Making it easy, so you had to rely on major companies with your information.
Brief History of Digital ID
- In 2005, Identity Commons and UMA Initiative introduced user-managed access to the world.
- During 2011, NSTIC and IDESG worked to improve the safety of digital spaces.
- In 2014:Sovrin Foundation came into being, working on designing a worldwide SSI network.
- Using the Rebooting the Web of Trust (RWoT), Internet security professionals began to collaborate closely in 2017.
- 2018:Work on Hyperledger advanced open source tools for SSI.
- The year 2020 saw privacy-first digital IDs become more important because of the pandemic.
By 2025, SSI will have grown, making self-sovereign identity a real source of user empowerment.
It’s only a matter of time for 2025 to be what we call the Tipping Point.
SSI Put to Use: Examples from Food Delivery and Trading
Your experiences with digital services will look different in 2025 because of self-sovereign identity (SSI). Nearly everything requires only one password now and your personal data will soon be under your own control. Now, you can prove who you are with fewer efforts and more certainty for banking, government or online services. This change means you can manage both what’s written about you and what you have written yourself.
By using SSI, privacy in these areas is at a new standard. You don’t give away more than you need to. If you’re applying for work or using healthcare, for instance, you are only required to show certain documents, not all of them. Legal services also gain advantages since digital signatures and verifying documents happen faster and are safer.
Everyday things like voting and signing papers now happen online. Thanks to SSI, every record is verified and protected which helps to stop fraud. Stricter security in organizations and cost savings mean you can move easily between finance, government systems and others.
It’s more than just making things simpler for people. It’s about empowering you, connecting different parts of your data and ensuring digital identity is built for you. The results are clear for anyone: you feel safer, have more privacy and see a smoother digital experience as a citizen, student, patient or business. As adoption increases, you should see SSI set new rules for trust and openness in all industries.
Smarter Self and VinID, backed by blockchains, are helping you manage your digital identity directly, giving you more independence and better privacy, security and compatibility.