Self-Sovereign Identity (SSI)
Self-Sovereign Identity (SSI) is a decentralized identity model where individuals own and control their digital identity credentials without relying on centralized authorities. The system uses blockchain or distributed ledger technology to create verifiable credentials that are cryptographically signed and can be verified without revealing underlying personal data. Users store their credentials in digital wallets, can selectively disclose only the information needed for specific transactions, and can revoke or update credentials without depending on third parties. This creates a privacy-preserving identity system where users have full control.
The technology addresses fundamental problems with current identity systems: users don't control their data, identity verification is fragmented across services, personal information is repeatedly shared and stored, and centralized identity providers create single points of failure. SSI enables portable, privacy-preserving identity that works across services, reduces identity fraud, and gives users control over their personal information. Applications include streamlined KYC/AML processes in finance, secure authentication without passwords, verifiable credentials for education and employment, and privacy-preserving identity verification. Companies and consortia are developing SSI standards and implementations.
At TRL 5, self-sovereign identity systems are being piloted and deployed in various applications, though adoption and interoperability remain challenges. The technology faces obstacles including achieving critical mass of adoption, ensuring user-friendly interfaces, managing key recovery and loss, and integrating with existing identity systems. However, as privacy concerns grow and digital identity becomes more important, SSI becomes increasingly valuable. The technology could transform how digital identity works by giving individuals control over their personal data, reducing identity fraud, enabling privacy-preserving authentication, and creating portable identity that works across services, potentially creating a more secure and privacy-respecting foundation for digital interactions while reducing the burden of repeated identity verification.
