So what is it exactly? To put it simply, SSI is a digital identity owned by you. No one else has it, no one else owns it. In theory, it is your unique digital property. Since it is 100% owned by you, only you can decide who sees it and what they see. Unlike other forms of identification, there’s no middle man between the owner and their SSI. It represents a potentially big leap in identification and personal privacy. In the past, your identity was verified in a variety of ways:
- Physical Identification Cards – such as your drivers license or student id. Physical cards are created by a third party (governments, schools, organizations etc) and therefore they are the holders of your private information. Should their system get hacked or breached, your information is no longer private or secure. Additionally, physical cards can get lost or copied, making them vulnerable to identity theft schemes.
- Digital Identification Methods – Used with third party digital services such as Facebook, Gmail, etc. The user submits information connected to login credentials. Third party providers usually have users sign an online agreement, enabling the collection and storage of personal data. This data may be used for marketing, sold to another third party, or leaked into cyberspeace. There is a reason it’s said that “nothing ever gets deleted from the internet”
In theory, self-sovereign identity represents a new way to independently control one’s identity. SSI credentials should be private, secure/encrypted and operate peer-to-peer. Personal data would not be stored on centralized servers either. The credential issuer or “middle man” essentially disappears , with a few exceptions such as certain decentralized identity holders.
As with any new technology, there’s a lot to learn about. One thing is certain — securing your digital identity and retaining control over your data/privacy are going to remain crucial issues both now and in the future. The methods of accomplishing this are already creating an entirely new industry. Just as with the early beginnings of the internet, there will be winners and losers.