Citizen Identification (3/4) : Self Sovereign identity (SSI)
In this series of blog posts, we will briefly present the major issues related to the digitization of identification documents and how blockchain technology can contribute to it.
Citizen Identification (3/4) : Self Sovereign identity (SSI)
In this series of blog posts, we will briefly present the major issues related to the digitization of identification documents and how blockchain technology can contribute to it.
What Can be the Use Cases of Blockchain in Digital ID Management?
Digital ID in a decentralized environment can be used in many ways, for exemple:
- Self Sovereign identity
- Data Portability
- Data Monetization
What is Self Sovereign identity?
Self-sovereign identity (SSI) is the concept which claims that individuals and businesses should fully own their identity data.
Following this simple principle, people should be able store their own identity data on a blockchain and on their own devices.
This allows them to choose which pieces of information to share to whom without relying or requesting permission of a third part or centralized authority and gives them control over how their personal ID is shared and used.
To sum up, SSI has the following characteristics:
- Individuals and businesses own and control it fully.
- Another person or entity can read it only with the owner give his permission.
- No one can use it without the owner’s consent.
- SSI is anchored on a blockchain, so it’s permanent, no hacker can destroy it.
- It‘s portable, it can be carried on different kind of devices.
What is Data Portability?
European Union General Data Protection Regulation (EU GDPR) states that : “the data subject shall have the right to have the personal data transmitted directly from one controller to another, where technically feasible”.
This combined with the development of relevant technologies such as blockchain, can enhance user experience, suppressing the necessity to recheck their identity when using different services and platforms.
As presented in our previous article, with DIDs and verifiable credentials, it is possible to move identities from system to another quickly and easily. Data portability enhances user experience, while easing the currently heavy sign-up process on several platforms which increases user adoption.
DID data portability also allows to reuse verified credentials, where users can for example instantly reuse KYC credentials to meet with legal requirements.
On the business side, this is especially useful to reduce customer on boarding time by mitigating the heavy identity verification process where usually a lot of documents, which are always the same, need to be provided and verified.
What is Data Monetization?
Following the expansion of data focused business models such as Facebook, Google, etc more people begins to wonder who owns and who profits from user-generated data. Data on its own has value, Data Monetization refers to the use of personal data for economic profit.
A blockchain based SSI model would give control of data back to their rightful owners and could pave the way to data self-monetization.
Currently, the online data that internet users generate is abstract, hidden, and complex. Defining who has the ownership of those data is critical, and SSI would make it possible to link individuals’ online data to their DID. From there, individuals could monetize their personal data as Facebook or Google are currently doing.
For example, an individual could decide to share his data to academics or choose to sell their data to advertisers. Users would also have the option to protect their data keeping it inaccessible to corporations or governments.
How does blockchain enable increased economic contribution?
Digital ID is expected to contribute to the global economic growth worldwide over the decade and will mostly benefit to individuals while stimulating economic activity for the global market.
For example, McKinsey states that reaching the unbanked population in ASEAN only could triple the economic contribution of the region by 2030.
Additionally, according to BGC, value attributed to digital identities is estimated to expand by 22% yearly, with economic benefits of close to €330 billion for European businesses and governments by 2020, and nearly twice as much value for consumers — €670 billion.
Decentralized identity models give users the chance to unlock this value, which will, in turn, grow the global economy.
In the following articles, we will further investigate possibilities offered by the blockchain technologies, such as Cardano and Atala Prism, to develop access to identification documents while making them more secured.
Proof of Africa supports the “African Blockchain Centre for Developers” (ABCD) which aim at creating opportunities by providing blockchain solutions to the world thanks to young talents working in Africa
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