Self-sovereign identity is an idea that refers to the usage of distributed databases to handle PII.
The notion of self-sovereign identity (SSI) is core to the thought of decentralized identity. Instead of getting a set of identities throughout a number of platforms or a single identity managed by a 3rd occasion, SII customers have digital wallets in which numerous credentials are saved and accessible via dependable functions.
Experts distinguish three primary parts generally known as the three pillars of SSI: blockchain, verifiable credentials (VCs) and decentralized identifiers (DIDs).
Blockchain is a decentralized digital database, a ledger of transactions duplicated and distributed amongst community computer systems that document info in a means that makes it tough or unimaginable to vary, hack or cheat.
Second, there are VCs known as tamper-proof cryptographically-secured and verified credentials that implement SSI and shield customers’ information. They can characterize info discovered in paper credentials, comparable to a passport or license and digital credentials with no bodily equal, comparable to, for example, possession of a checking account.
And final however not least, SSI contains DIDs, a brand new kind of identifier that permits customers to have a cryptographically verifiable, decentralized digital identity. A DID refers to any topic like an individual, group, information mannequin, summary entity, et cetera, as decided by the controller of the DID. They are created by the person, owned by the person and unbiased of any group. Designed to be decoupled from centralized registries, identity suppliers and certificates authorities, DIDs allow customers to show management over their digital identity with out requiring permission from any third occasion.
Alongside SII, which is rooted in blockchain, DIDs and VCs, decentralized identity structure additionally embraces 4 extra parts. They are a holder who creates a DID and receives the verifiable credential, an issuer that indicators a verifiable credential with their personal key and points it to the holder, and a verifier that checks the credentials and may learn the issuer’s public DID on the blockchain. Moreover, a decentralized identity structure encompasses particular decentralized identity wallets that gas the entire system.
How decentralized identity works
The foundation for decentralized identity administration is the usage of decentralized encrypted blockchain-based wallets.
In a decentralized identity framework, customers make the most of decentralized identity wallets — particular apps that permit them to create their decentralized identifiers, retailer their PII and handle their VCs —as an alternative of maintaining identity info on quite a few web sites managed by intermediaries.
Besides distributed structure, these decentralized identity wallets are encrypted. Passwords to entry them are changed by non-phishable cryptographic keys that don’t characterize a single weak spot in the case of a breach. A decentralized pockets generates a pair of cryptographic keys: private and non-private. The public key distinguishes a concrete pockets, whereas the personal one, which is saved in the pockets, is wanted in the course of the authentication course of.
While decentralized identity wallets transparently authenticate customers, in addition they shield customers’ communications and information. Decentralized apps (DApps) retailer PII, verified identity particulars and the data wanted to ascertain belief, show eligibility or simply full a transaction. These wallets assist customers give and revoke entry to identity info from a single supply, making it quicker and simpler.
On high of that, this info in the pockets is signed by a number of trusted events to show its accuracy. For instance, digital identities can get approval from issuers comparable to universities, employers, or authorities buildings. Using a decentralized identity pockets, customers can current proof of their identity to any third occasion.
