Sovereign identity and Blockchain

Today we interact with the world in a very different way than we did not so many years ago, and it is all thanks to the digital revolution. Much of our lives have gone digital, from communication to financial transactions. Digital identity has become crucial in this context, and the idea of "self-sovereign digital identity" has emerged as a novel idea that aims to increase online security and privacy while promoting the adoption of cutting-edge technologies such as blockchain.

What is Self-Sovereign Digital Identity?

The self-sovereign digital identity (SSI) paradigm gives individuals full control over their online identity. Unlike existing conventional online identity models, which hold and manage our personal information on behalf of organisations or governments, SSI allows users to own, control and share their identity information in a secure and decentralised way. Cryptography and blockchain technology are used to achieve this.

How does the Self-Sovereign Digital Identity work?

SSI is based on a number of key principles:

• User in Control: Control and own your digital identity. With no need for intermediaries to confirm your identity, you are now free to choose what information to share and with whom.
• Descentralización: en la cadena de bloques o en libros de contabilidad distribuidos, la información de identidad se almacena de forma descentralizada. Al hacer esto, un único punto de falla queda protegido contra ataques cibernéticos y el uso indebido de información personal.
• Cryptography: Using cryptographic techniques, identity information is stored securely. With this, you can be sure that only authorised users can access and distribute your data.
• Interoperability: SSI systems are designed to be compatible with each other regardless of the platform or application used.

Users have the option to provide verifiable identification documents on a selective basis. Therefore, only relevant information can be shared without disclosing unnecessary details.

The Need for SSI in Blockchain Technology

Sovereign digital identity is essential to blockchain technology for reasons such as:

• Privacy and security: SSI gives users full control over their personal data in an environment where security and privacy are top priorities. As a result, the potential for security breaches and data misuse is reduced.
• Regulatory compliance: SSI simplifies compliance with laws such as the European Union's General Data Protection Regulation (GDPR), enabling individuals to effectively exercise their right to privacy.
• Data silos can be eliminated: SSI can make it unnecessary for companies to maintain centralised databases of identity data. This can reduce the costs and risks associated with handling sensitive data.

Self-Sovereign Digital Identity Use Cases

There are many industries where self-sovereign digital identity has applications:

• Secure Online Identification (SSI): This technology allows users to authenticate themselves securely online without having to disclose private data such as passwords or national insurance numbers.
• Identity management in the health sector: In the healthcare sector, SSI can enable patients to have full control over their medical information and share it securely with healthcare professionals.
• Access to government services: Through the use of SSI, governments can provide citizens with fast and secure access to government services online.
• Simplifying recruitment and admission procedures for educational institutions: facilitating the verification of academic qualifications and work credentials. SSI can help with this process.
• Identity management in banking: SSI can help with authentication and fraud prevention in the financial industry, giving customers control over their financial data.

Conclusion

SSI promotes security, privacy and innovation in a variety of fields, including blockchain technology, by giving individuals control over their personal information. We are likely to witness a significant increase in the adoption of SSI applications in a variety of industries as they continue to grow, which will enhance our online experience and more effectively protect our personal data.