December 13, 2023
Introducing "The Past, Present, and Future of Self-Sovereign Identity and Digital Identity Systems," where we delve into the evolution, current state, and future prospects of digital identity, with a focus on the concept of Self-Sovereign Identity.
This white paper highlights the challenges faced by traditional, centralised digital identity systems, which have been vulnerable to data breaches and offered limited user control over personal data.
SSI emerges as a transformative solution, offering users full control over their identity data, enhancing security, privacy, and autonomy. As a taste of the insights awaiting you in the full white paper, here are some key insights we’ve reported to get you excited about the future of digital identity.
Current digital identity systems are plagued by significant vulnerabilities, leading to extensive financial losses. Businesses, particularly in sensitive sectors like finance and healthcare, suffer from the repercussions of data breaches and identity theft. These incidents result in not only direct monetary losses but also long-term damage to brand reputation and customer trust. The economic impact is further compounded by the costs of legal actions, damage control, and regulatory fines.
In the U.S., identity fraud alone resulted in losses over $712.4 billion in 2020, indicating the scale of the problem. Cybercrime, with an annual loss of $3 trillion in 2016, is projected to soar beyond $10.5 trillion by 2025. This escalation, outpacing global losses from natural disasters, underscores the urgency of addressing the failings in digital identity systems and enhancing cybersecurity measures.
The future of Self-Sovereign Identity (SSI) in digital technology hinges on challenges like achieving universal adoption, ensuring interoperability, and developing comprehensive regulatory frameworks. Embracing technological advancements and exploring new applications in areas like supply chains and IoT are also key. Building public trust is crucial for the widespread acceptance of SSI.
The upcoming eIDAS 2.0 legislation in the European Union is a pivotal development, set to provide a standardized digital identity for all EU citizens and businesses. This legislation aims to streamline cross-border transactions, enhance customer experiences, and simplify compliance for businesses, while aligning with emerging technologies like digital identities and AI. This shift underlines the need for a balanced, forward-looking approach in digital identity management, leveraging past lessons and current insights.
Self-Sovereign Identity (SSI) offers transformative solutions across various sectors. In terms of regulatory compliance and auditing, SSI provides cryptographic verification of credentials, ensuring authenticity and instilling immediate trust. This transparency simplifies compliance and makes audits more efficient, potentially saving time and costs while enhancing credibility.
In government services, SSI addresses challenges in data security and public service efficiency. Applications include digital voting to reduce electoral fraud, streamlined tax filing, improved public healthcare through secure medical data sharing, and easier management of residency and travel documentation.
The rise of SSI and Digital Identity technologies introduces new business models and redefines data management. Individuals can monetize their data in data marketplaces by selectively sharing information with businesses for incentives. Credentialing platforms are emerging to handle the issuance, verification, and management of verifiable credentials. Cross-selling of identity services also emerges an opportunity, such as collaborations between banks, their insurance providers, and mortgage teams can share a platform to open, verify, and complete customer journeys in the blink of an eye.
Additionally, the concept of Identity-as-a-Service is gaining traction, where businesses outsource their SSI infrastructure on a subscription or pay-per-use basis. Overall, these technologies are transforming how personal data is viewed and managed, potentially redefining identity in the digital era.
Self-Sovereign Identity (SSI) emerges as a robust alternative to older digital identity systems which have become outdated in the face of advanced digital challenges, offering enhanced user control and security. While transitioning from old systems and initial costs are challenges, SSI's impact is far-reaching, revolutionizing sectors like finance and healthcare and potentially transforming digital voting and taxation. This shift in digital identities, amid technological advancements and changing societal attitudes, presents a promising future. Success hinges on collaborative efforts from tech experts, policymakers, and the public to navigate and optimize this new era of digital identity management, aiming for a future where instant verification fosters trust, growth, and efficiency.
This is just a small taste of what we've covered in the report, and hopefully has inspired you to learn there's a better way of doing business, and the change is inevitable. Are you ready? Want to find out more and get ahead download the full white paper.