Self-Sovereign Identity in a Globalized World: Credentials-Based Identity Systems as a Driver for Economic Inclusion

Abstract

After introducing key concepts and definitions in the field of digital identity, this paper will investigate the benefits and drawbacks of existing identity systems on the road toward achieving self-sovereign identity. It will explore, in particular, the use of blockchain technology and biometrics as a means to ensure the "unicity" and "singularity" of identities, and the associated challenges pertaining to the security and confidentiality of personal information. The paper will then describe an alternative approach to self-sovereign identity based on a system of blockchain-based attestations, claims, credentials, and permissions, which are globally portable across the life of an individual. While not dependent on any particular government or organization for administration or legitimacy, credentials and attestations might nonetheless include government-issued identification and biometrics as one of many indicia of identity. Such a solution-based on a recorded and signed digital history of attributes and activities-best approximates the fluidity and granularity of identity, enabling individuals to express only specific facets of their identity, depending on the parties with whom they wish to interact. To illustrate the difficulties inherent in the implementation of a self-sovereign identity system in the real world, the paper will focus on two blockchain-based identity solutions as case studies: (1) Kiva's identity protocol for building credit history in Sierra Leone, and (2) World Food Programme's Building Blocks program for delivering cash aid to refugees in Jordan. Finally, the paper will explore how the combination of blockchain-based cryptocurrencies and self-sovereign identity may contribute to promoting greater economic inclusion. With digital transactions functioning as identity claims within an ecosystem based on self-sovereign identity, new business models might emerge, such as identity insurance schemes, along with the emergence of value-stable cryptocurrencies ("stablecoins") functioning as local currencies.

Blockchain, Self-Sovereign Identity and Digital Credentials: Promise Versus Praxis in Education

“…In a knowledge-based global economy, an ability to state, verify and prove digital identity in a seamless fashion in a hyperconnected webspace is a vital human right, "the key to survival" according to Wang and De Filippi (2020). According to a World Bank report 5 as of 2016, over 1.5 billion people around the globe have no means to prove their identity.…”

“…In a recent report, the American Council on Education (Lemoie and Soares, 2020) identified three key themes emerging from the intersection of blockchain technology and education: personal data agency, lifelong learning, and the power of connected ecosystems. While lifelong learning has been a recurring theme in the education sector for several years (Ates and Alsal, 2012;Volles, 2016), the concept of personal data agency as achieved via self-sovereign identities is still gaining momentum in academic and policy circles (Wang and De Filippi, 2020). Despite the technological promise of blockchain, several barriers remain that have limited the practical applications to proof of concepts and pilots so far.…”

Decentralized vs. Distributed Organization: Blockchain, Machine Learning and the Future of the Digital Platform

“…As a force of creation, the pirate countermovement will continue pushing for the design of supranational common goods in cyberspace, including the promotion of ‘self-sovereign identity’, intended to ‘preserve the right for the selective disclosure of different aspects of one’s identity’ independently of corporate and government intermediaries (Wang & De Filippi, 2020, p. 9). Self-sovereign identity has potentially crucial implications for organizations’ communication systems, starting with the shift to a new generation of data technologies (e.g.…”

Perspectives on “Good” in Blockchain for Good

“…Most assume that the application is inherently good either because of their area of study, e.g., aid flows, human rights, etc., or simply because the application is in a nonfinancial area. We have seen DLT applications that provide identity, particularly in the Global South (Wang and De Filippi, 2020). The value of such systems appears to be mainly for the provider, making it possible to identify individuals so they can be more easily processed.…”