What is Web3 Self-Sovereign Identity (SSI)?

Your digital identity should be firmly under your ownership. That sentence should be straightforward, but under today’s most common data systems, it can be challenging to maintain control. Self-Sovereign Identity – and more broadly, Web3 – can change that.

But to understand Self-Sovereign Identity, first you need to have a grasp on what constitutes your digital identity. In a Web2 world, digital identity primarily refers to the identifiable data about you that exists on the internet. Things like usernames and passwords or social media posts that can be traced back to you. In Web3, a digital identity primarily refers to a human-readable address that allows users to sign transactions and authorizations related to decentralized applications (dApps).

In traditional, centralized systems, the safety of that information lies with a third party, exposing your data to risk. Securing your data through Web3 technologies and embracing decentralization can help you to retake control over your privacy online.

What Is Self-Sovereign Identity?

Self-Sovereign Identity, or SSI, can be a bit abstract. Basically, it refers to the concept of individuals taking control of their digital identity by eliminating the middleman. While there are minor differences, SSI is often used interchangeably with the phrase “decentralized identity.” Think of SSI like a digital passport (or a digital wallet). This identification data would be accepted broadly – but importantly, it would stay in your hands. Third parties, such as Meta or Google, would not be the ones storing it.

There are three key elements involved in an SSI system: a holder, an issuer and a verifier. Holders are the person who is creating their digital, decentralized identification. The holders receive credentials, which can then be verified. The issuer is a different party, which has the ability to authorize these verifiable credentials. Finally, there’s the verifier, which is responsible for checking and confirming the credential.

This system would effectively end the convoluted practice of having different accounts for everything you do online. It would give you a singular, crypto-based signature that you could use to ‘prove’ your identity on any post, picture or digital message.

What Can You Do With SSI?

SSI is an important tool for individuals who want to be in charge of their own identities. It’s based on principles of decentralization and trust-minimized technologies. These are Web3 features that are designed to incentivize privacy, security and freedom. 

It allows you to create either a digital identity that is tied to your real-life one or – if you’d prefer – to remain anonymous. SSIs do not rely on institutions to maintain your information, so users can feel secure that they are not entrusting one company or centralized party with their identity. ​​Because you are in charge of the information, you have more say over who gets to see it – or you can simply remove access. 

If SSI were the default system of maintaining digital identity, then accessing products online or signing into websites would solely rely on the user. Your data would not necessarily be sold to businesses for others to profit on, though you could license or sell it yourself. You become the custodian of your own information.

It can also help protect against the emerging threats of A.I. and deep-fakes. With the power to sign your content through SSI, people regain the ability to identify themselves. A deep-fake of you that lacks your cryptographic signature would instantly be suspicious to others.

How Is It Different Under Web3 vs. Web2?

Most of the identity management systems that are currently in use to oversee our online identities are Web2 – or centralized – systems. Generally, this means that the organization is storing its data in a singular location. This could be a physical server or cloud storage, but the lone location creates vulnerabilities. Hackers only need to breach one point of entry in order to make off with user data; and even when your data remains secure, you will have less control over how your information is used or shared. This system also increases the day-to-day difficulty for users, who need separate usernames and passwords for nearly every website. 

Under Web3, many of these problems are solved. Your SSI is controlled by you, and your data storage is decentralized. Instead of living in one hub location, your digital identity is distributed onto user devices, which makes it more difficult to hack. Web3 systems also allow for significantly more privacy. In Web3, you can be verified without having to reveal personal information (such as your address), and you can use one set of credentials instead of having numerous accounts to keep track of.‍

Conclusion

SSI solutions are just one of the many ways in which Web3 can help secure your information.

By continuously learning and exploring new protocols and the advances in decentralization, users can ensure they’re at the forefront of any trends in Web3-secured data. 

‍