If you can wholeheartedly trust that someone or something is what they say they are – without a lengthy verification – everything goes faster. This is the promise of self-sovereign identity (SSI) – a form of decentralized identity.

In this way, SSI is working to redefine online trust and radically improve business efficiency. Any business process requiring verification can benefit from SSI technology – from checking a new hire's credentials to ensuring suppliers are ethically certified across your supply chain. This article will examine SSI, its use cases, and what it needs to thrive: widespread adoption, training, and interoperability.

What is SSI?

SSI gives users complete control of their digital identity. People or organizations store their identity credentials – anything an entity uses to prove who they are, from online logins to tax identification – in decentralized digital wallets. They own the wallet and the credentials – it's up to them to accept an issued credential or to verify themselves when asked.

SSI has three core roles: identity owners, issuers, and verifiers. For example, when a company (verifier) integrates a new ethical supplier into its supply chain, the new supplier (identity owner) sends an ethical compliance credential issued by a governing body (issuer).

SSI differs from traditional identity processes because digital wallets handle all the interactions. When two roles agree to connect, for example, identity owners showing credentials to verifiers, the verifier's wallet pings a registry – often a blockchain – to check that everything is correct and still valid. This is faster than traditional processes, as verifiers don't have to contact the issuer directly, and verification occurs almost instantly.

It also enhances privacy by giving users greater control over the degree of information they share. If identity owners are proving their age, for example, they only need to show their age – instead of handing over a driver's license that shows their age, address, and full name.

SSI use cases

One digital wallet could log you onto any service or website, so there's no need for multiple accounts and passwords. Scanning a QR code could get you a new driver's license. Companies could easily verify suppliers – especially powerful across large supply chains when companies pledge to work with ethical suppliers. For example, in the diamond industry, companies can use digital identities to see a supplier's compliance documentation and a diamond's origin and cutting events to ensure they are ethically sourced.

Once integrated with enterprise systems, like HCM, employees could generate verification letters to instantly prove employment and income requirements for bank accounts or loans.

The benefits of built-in trust also extend to master data management. Before an organization transfers money to a supplier, it wants to ensure the supplier's bank account details are correct. This means triple-checking and verifying the data. With SSI, there's no question that the bank account is valid. Organizations could even take it further and confirm the bank's identity.

Challenges of SSI

For SSI to redefine online trust, it needs widespread adoption, training, and interoperability.

Interoperability is a challenge that requires swift coordination from the outset. If various companies and services end up developing unique digital wallets, they may replace the overabundance of accounts and passwords with competing wallets. Organizations like the Decentralized Identity Foundation understand this challenge and are working with stakeholders toward interoperability.

SSI is unique among emerging technologies in its requirement for full ecosystem adoption – if only a few services accept it, then it is hard to justify adoption. Identity owners, verifiers, and issuers – from governments to universities – must understand the value of adopting SSI and be trained in how to use it. Proponents are piloting ecosystem-wide adoption, and the EU Digital Identity Wallet project is a powerful example. The EU recognizes the benefits of standardizing credentials among member states while retaining privacy, and this pilot project will test technical wallet specifications.

SSI is worth it

Proponents of SSI are working to address these challenges because SSI has clear benefits and use cases. Business leaders should always bring a critical mindset before incorporating any emerging technology into their organization's road maps. However, for those looking to speed up processes and cut down on time-consuming administration, SSI is worth investigating.

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