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Understanding Self-Sovereign Identity

A comprehensive guide to decentralized digital identity, verifiable credentials, and the technologies powering the future of trust.

65 min study25 Sections7 Topics

Foundations

Introduction to SSI

Self-Sovereign Identity (SSI) represents a paradigm shift in how we think about digital identity. Unlike traditional identity systems where a third party controls your identity data, SSI puts individuals in control of their own digital identities.

The concept emerged from the need to solve fundamental problems with current identity systems: data breaches, identity theft, lack of privacy, and the inconvenience of managing multiple credentials across different platforms.

Self-sovereign identity is the next step beyond user-centric identity, and that means it begins at the same place: the user must be central to the administration of identity.
— Christopher Allen, The Path to Self-Sovereign Identity

At its core, SSI is about giving people the same independence and autonomy in the digital world that they have in the physical world—the ability to prove things about themselves without relying on a central authority.

What is Digital Identity?

Digital identity refers to the online representation of a person, organization, or entity. It encompasses all digital data linked to an individual—such as names, email addresses, social media profiles, and online behavior patterns—that collectively create their presence in the digital world.

Digital Identifiers

These are unique codes or information used for authentication: usernames, IP addresses, biometric data (fingerprints, facial recognition), cookies, and official identification numbers.

Four Types of Authentication

Knowledge-Based

Passwords, PINs, security questions—something you know

Possession-Based

Smart cards, mobile devices, hardware tokens—something you have

Biometric-Based

Fingerprints, iris scans, facial recognition—something you are

Behavioral-Based

Typing patterns, interaction habits—how you behave

Current Challenges

Security Risks: Centralized systems store large amounts of personal data in one place, making them attractive targets for hackers. Data breaches enable identity theft and fraud.

Lack of Control: Users have limited control over personal information sharing. Organizations face regulatory compliance burdens and poor interoperability between systems.

Evolution of Digital Identity

Digital identity has evolved through four distinct phases, each bringing us closer to true self-sovereignty:

1

Centralized Identity

Single authorities (governments, corporations) issue and control identities. Users must trust these central entities completely.

Weakness: Single points of failure, vulnerable to large-scale breaches

2

Federated Identity

Multiple organizations recognize each other's identities (e.g., "Login with Google"). Improves convenience but concentrates power in large providers.

Weakness: Dependency on tech giants, third-party data sharing required

3

User-Centric Identity

Users can choose their identity provider and control what data is shared. However, the provider still maintains ultimate control.

Weakness: Provider can still revoke access, limited portability

4

Self-Sovereign Identity

Users fully control their identities using cryptographic keys. No single authority can revoke or corrupt the identity.

Benefits: User ownership, portable, privacy-preserving, censorship-resistant

The Ten Principles of SSI

Christopher Allen defined ten principles that guide the development of self-sovereign identity systems:

1

Existence

Users must have an independent existence beyond their digital identity.

2

Control

Users must control their identities and always be able to refer to, update, or hide them.

3

Access

Users must have access to their own data without gatekeepers.

4

Transparency

Systems and algorithms must be transparent and open source.

5

Persistence

Identities must be long-lived, preferably forever or as long as the user wishes.

6

Portability

Identity information must be transportable and not held by a single entity.

7

Interoperability

Identities should be as widely usable as possible across different systems.

8

Consent

Users must agree to the use of their identity data.

9

Minimization

Disclosure of claims must be minimized to protect privacy.

10

Protection

User rights must be protected through independent, censorship-resistant algorithms.

Operational Principles

Beyond the foundational SSI principles, these 9 operational guidelines shape how identity systems should behave in practice:

Data Minimization

Collect only strictly necessary information—nothing more.

Selective Disclosure

Citizens reveal only the data required per transaction.

No Phone Home

Verifiers validate credentials without contacting issuers—preserving privacy.

Self-Sovereignty

Citizens control their own keys and credentials at all times.

Open Interoperability

Adopt open standards (W3C, DIF, OIDC) to avoid vendor lock-in.

Zero-Knowledge Proofs

Validate claims without exposing the underlying data.

Portability

Migrate credentials freely without dependency on any single provider.

Controlled Immutability

Records are verifiable and tamper-proof, yet revocable when needed.

Auditability

Transparent processes that protect personal data while enabling oversight.

Key differentiator: The "No Phone Home" principle means verifiers can validate credentials instantly using cryptographic proofs—without ever contacting the issuer. This preserves citizen privacy (issuers don't know when or where credentials are used) and enables offline verification.

Digital Public Infrastructure

Digital Public Infrastructure (DPI) refers to foundational, shared, secure, and interoperable digital systems that enable governments, businesses, and citizens to deliver and access services efficiently and inclusively—acting as essential "digital roads" for an economy.

Think of DPI like physical roads, railways, and postal services: shared infrastructure that everyone uses to connect and exchange goods, services, and information—but DPI does it digitally for the modern era.

Core Components

Digital Identity

Systems for verifying who a person is (e.g., Aadhaar, QuarkID)

Payment Systems

Interoperable platforms for fast, reliable transactions (e.g., UPI, Pix)

Data Exchange

Secure platforms for sharing data between services with consent

Digital Signatures

Systems for secure communication and contract execution

Why DPI Matters

Shared Foundation

Common digital building blocks that multiple public and private services can build upon, reducing duplication.

Interoperability

Different systems and services communicate and work together seamlessly across borders.

Efficiency

Reduces paperwork, forms, and waiting times for citizens and businesses.

Inclusivity

Extends access to services for marginalized populations, supporting development goals.

Innovation

Fosters economic growth by enabling private sector innovation on top of public systems.

Trust

Builds confidence through transparent, secure, and verifiable digital interactions.

SovraGov as DPI: SovraGov is designed to serve as Digital Public Infrastructure (DPI) for governments—providing the foundational identity layer upon which payments, data exchange, and digital signatures depend. By adopting open standards and ensuring interoperability, SovraGov enables nations to build sovereign, inclusive digital ecosystems. Learn more →

Digital Public Goods

Digital Public Goods (DPGs) are open-source software, open data, open AI models, open standards, and open content that adhere to privacy best practices and are designed to "do no harm." They represent a shift from expensive proprietary systems to freely available, adaptable solutions that empower nations to build their own digital ecosystems.

Key Characteristics

Open Source

Code, data, AI models, and standards freely available and modifiable

Trustworthy

Adheres to privacy laws, best practices, and designed to do no harm

Platform Independent

Works across different systems without vendor lock-in

Well-Documented

Easy to discover, understand, deploy, and build upon

DPG Examples by Sector

Healthcare
  • DHIS2 (health data platform)
  • Bahmni (electronic health records)
  • OpenMRS (medical records)
Digital Identity
  • MOSIP (modular identity platform)
  • QuarkID (verifiable credentials)
  • OpenCRVS (civil registration)
Financial Inclusion
  • Mojaloop (payment interoperability)
  • Mifos (microfinance)
  • Apache Fineract (core banking)

Why DPGs Matter

Sovereignty

Countries shift from being users of foreign tech to creators of their own solutions

Cost-Effective

Eliminate licensing fees and reduce dependency on expensive proprietary software

Rapid Innovation

Build on existing solutions rather than starting from scratch—critical for urgent needs

The Digital Public Goods Alliance (DPGA) maintains an official registry of certified DPGs, helping governments and organizations discover, evaluate, and implement trusted open-source solutions. Explore the Registry →

QuarkID — the DPG behind SovraID: The identity layer that powers Sovra's infrastructure is certified as a Digital Public Goods (DPGs) by the DPGA. This means governments can adopt verifiable credential technology with confidence: open-source, privacy-respecting, and free from vendor lock-in. View certification → Learn more about SovraID →

Core Technology

The Trust Triangle

The SSI ecosystem operates on a three-party trust model that eliminates the need for centralized identity authorities. Understanding these roles is fundamental to SSI.

Issuer

Trusted entities that create and sign credentials (governments, universities, employers, banks)

Holder

Individuals or organizations that receive, store, and present credentials from their wallet

Verifier

Service providers that request and validate credentials (employers, banks, government agencies)

How It Works

1

Issue: An issuer creates a credential and signs it cryptographically

2

Hold: The holder stores the credential in their digital wallet

3

Present: When needed, the holder presents the credential to a verifier

4

Verify: The verifier checks the cryptographic signature—no need to contact the issuer

Key Innovation: Verification doesn't require contacting the issuer. The cryptographic signature embedded in the credential is sufficient to prove authenticity, enabling privacy-preserving verification at scale.

Decentralized Identifiers (DIDs)

Decentralized Identifiers (DIDs) are globally unique identifiers that individuals and organizations create and control independently. Unlike emails or usernames, DIDs are owned by the user and independent of any organization.

Example DID:

did:example:123456789abcdefghi

Structure:

did: (scheme)example (method)123456... (unique identifier)

Cryptographic Key Pairs

Each DID is associated with a cryptographic key pair:

Private Key

Secret code for signing. Never shared—like a master password that proves ownership.

Public Key

Shared openly. Allows others to verify signatures without contacting issuers.

Key Properties

  • Decentralized: No central authority required to create or manage
  • Persistent: Remain valid regardless of any organization's operation
  • Verifiable: Can be authenticated using cryptographic proofs
  • Privacy-Preserving: Contain no personal data themselves

Digital Signatures

Digital signatures are cryptographic mechanisms that verify document authenticity and signer identity. They are the foundation of trust in SSI—every credential is digitally signed by its issuer.

How They Work

Signing (Private Key)

The issuer uses their private key to create a unique cryptographic stamp on the credential. This stamp is mathematically tied to the content.

Verification (Public Key)

Anyone with the public key can verify the signature is authentic and that the content hasn't been modified since signing.

Digital vs. Electronic Signatures

Electronic Signatures

Typed names, checkboxes, or scanned signatures. Indicate intent but provide no cryptographic proof of authenticity.

Digital Signatures

Cryptographic proof of identity and integrity. Any modification after signing invalidates the signature.

Applications

  • Credentials: Signed diplomas, licenses, and certificates
  • Healthcare: Signed prescriptions and medical records
  • Finance: Signed transactions and contracts
  • Government: Signed IDs and official documents

Verifiable Credentials (VCs)

Verifiable Credentials are the digital equivalent of physical credentials like passports, driver's licenses, and diplomas. They are tamper-evident, cryptographically signed documents that can be instantly verified without contacting the issuer.

Credential Lifecycle

1

Issuance

Trusted entity creates and digitally signs the credential

2

Storage

Holder stores credential in their digital wallet

3

Presentation

Holder presents credential (or specific attributes) to verifier

4

Verification

Verifier checks signature cryptographically—instant, no callbacks

Key Benefits

Instant Verification

Verify in seconds without contacting the issuer

Tamper-Evident

Any modification invalidates the signature

Privacy Control

Share only specific attributes via selective disclosure

Holder Control

Users decide when, with whom, and what to share

Digital Wallets

A digital wallet is a secure application that stores and manages digital assets—from payment cards to identity credentials. In SSI, wallets become the sovereign interface between individuals and the digital world, replacing centralized logins with user-controlled identity.

The future of digital interaction isn't "Login with Google" or "Login with Facebook"—it's "Connect your Wallet." A fundamental shift from platform-controlled identity to user-sovereign identity.

The Wallet Evolution

Physical Wallet

Pre-digital

Cash, cards, IDs in leather

Payment Wallet

2010s

Apple Pay, Google Pay—digitized payments

Crypto Wallet

2015+

MetaMask, Ledger—asset custody

Identity Wallet

Now

DIDs + VCs—sovereign identity

Wallet Comparison

FeatureApple/Google WalletCrypto WalletIdentity Wallet
Primary PurposePaymentsAsset custodyIdentity & credentials
Data ControlPlatform-controlledUser-controlled keysFull sovereignty
Selective Disclosure
Verifiable CredentialsLimited✓ Native
InteroperabilityEcosystem-lockedChain-specificW3C standards
Business ModelData monetizationTransaction feesVerification fees

Conformant Wallet Characteristics

W3C Data Models

Supports VC Data Model and DID specifications for global interoperability

Protocol Support

OpenID4VP, SIOPv2, and DIDComm for secure credential exchange

Hardware Security

NIST-compliant cryptography with secure enclave support

Regulatory Compliance

Aligned with eIDAS 2.0, GDPR, and regional frameworks

Offline Capability

Credential verification works without network connectivity

Recovery Mechanisms

Secure backup and recovery without compromising sovereignty

SovraWallet SovraWallet is Sovra's conformant identity wallet—a non-custodial application where citizens store DIDs and verifiable credentials under their complete control. Unlike crypto wallets focused on speculation, SovraWallet serves institutional purposes: government services, education, healthcare, and verifiable identity. Learn more →

Blockchain

Blockchain is a distributed ledger technology that enables secure, transparent, and tamper-proof record-keeping without relying on a central authority. For digital identity, blockchain provides the trust infrastructure where identity and credentials can be anchored, verified, and managed in a decentralized manner—while advanced data availability modes ensure sensitive information remains private and protected.

What is Blockchain?

A blockchain is a chain of blocks, where each block contains a list of transactions. Once a block is added to the chain, it becomes extremely difficult to alter—any change would require modifying all subsequent blocks and gaining consensus from the network. This creates an append-only, tamper-evident record.

Concept
Distributed Ledger

Every participant (node) maintains a copy of the entire ledger. Changes are propagated across the network and validated by consensus, eliminating single points of failure.

Concept
Consensus Mechanisms

Rules that determine how nodes agree on the state of the ledger. Common mechanisms include Proof of Work (PoW) and Proof of Stake (PoS), each with different security and efficiency trade-offs.

Why Blockchain for Identity?

Immutability

Once recorded, data cannot be altered or deleted—creating permanent, tamper-proof records.

Decentralization

No single entity controls the network. Trust is distributed across thousands of nodes worldwide.

Transparency

Anyone can verify the state of the network. Open auditability builds trust.

Public vs Private Blockchains

Public Blockchains

Open networks where anyone can participate, validate transactions, and read the ledger. Examples: Bitcoin, Ethereum.

  • Maximum decentralization and censorship resistance
  • Transparent and auditable by anyone
  • Security through economic incentives
Private/Permissioned Blockchains

Restricted networks where participation requires authorization. Examples: Hyperledger Fabric, R3 Corda.

  • Controlled access and governance
  • Higher throughput potential
  • Privacy for sensitive enterprise data

Ethereum: The Programmable Blockchain

Ethereum extends Bitcoin's concept of a distributed ledger by adding programmability. While Bitcoin tracks ownership of a currency, Ethereum tracks the state of a virtual computer that anyone can program—enabling smart contracts and decentralized applications.

Core
Accounts & Transactions

Two account types: Externally Owned Accounts (EOAs) controlled by private keys, and Contract Accounts controlled by code. Transactions are cryptographically signed instructions that modify the blockchain state.

Core
Smart Contracts

Self-executing programs stored on the blockchain. They automatically enforce rules and execute actions when conditions are met—enabling trustless coordination.

Core
Ethereum Virtual Machine (EVM)

The global computer that executes smart contracts. Every node runs the same code and reaches consensus on the result, ensuring deterministic execution.

Evolution of Ethereum

Ethereum has undergone significant upgrades to improve security, sustainability, and scalability:

2015 - Frontier

Genesis Launch

Ethereum goes live with Proof of Work consensus, enabling the first smart contracts.

2020 - Beacon Chain

Proof of Stake Foundation

The Beacon Chain launches, introducing Proof of Stake consensus mechanism alongside the existing PoW chain.

2022 - The Merge

Proof of Stake Transition

Ethereum transitions from Proof of Work to Proof of Stake, reducing energy consumption by ~99.95%.

2024+ - Dencun & Beyond

Scaling Era

Proto-danksharding (EIP-4844) reduces L2 costs. Future upgrades focus on full danksharding and statelessness.

Layer 2: Scaling Blockchain

Layer 2 (L2) solutions process transactions off the main chain while inheriting its security. This dramatically increases throughput and reduces costs—making blockchain practical for real-world applications.

Rollup
Optimistic Rollups

Assume transactions are valid by default. Use fraud proofs if disputes arise. Examples: Optimism, Arbitrum, Base.

Rollup
ZK Rollups

Generate cryptographic proofs of validity for each batch. Faster finality, stronger guarantees. Examples: zkSync, StarkNet, Scroll.

Rollup
Based Rollups

Sequencing done by L1 validators instead of centralized sequencers. Maximum decentralization and L1 alignment. Examples: Taiko.

L2 Benefits for Identity

~$0.01

Transaction Cost

<2s

Confirmation Time

1000+

TPS Capacity

L1

Security Inherited

Data Availability Modes

A critical design choice for any L2 is where transaction data is stored. This determines the balance between transparency, privacy, cost, and security—especially important for identity applications handling sensitive personal information.

Mode
Rollup Mode

All transaction data is posted to L1 (Ethereum). Maximum transparency and data availability, but higher costs and all data is publicly visible.

Best for: DeFi, public registries

ModeRECOMMENDED
Validium Mode

Transaction data is stored off-chain with only proofs posted to L1. Dramatically lower costs and private data stays private—ideal for identity.

Best for: Identity, credentials, private data

Mode
Volition Mode

Hybrid approach where users choose per-transaction whether data goes on-chain or off-chain. Flexibility at the cost of complexity.

Best for: Mixed use cases

Why Validium for Identity?

Identity credentials contain sensitive personal data that should never be exposed on a public blockchain. Validium mode ensures:

  • Privacy by default: Personal data never touches the public chain
  • Cryptographic security: Zero-knowledge proofs verify correctness without revealing data
  • Regulatory compliance: Meets GDPR and data protection requirements
  • Cost efficiency: 10-100x cheaper than posting all data on-chain

Blockchain for Digital Identity

DID Registries

Decentralized Identifier documents can be anchored on-chain, providing a global, censorship-resistant registry for identity resolution.

Credential Status

Smart contracts can manage revocation registries, enabling real-time verification of credential validity without centralized databases.

Trust Anchors

Issuer registries and governance frameworks can be encoded in smart contracts, creating transparent, auditable trust frameworks.

ZK Integration

Modern blockchains support zero-knowledge proofs, enabling privacy-preserving identity verification—prove attributes without revealing underlying data.

Execution Client
Ethrex

Ethrex is a modern Ethereum execution client built in Rust by LambdaClass, designed for high performance, reliability, and L2 infrastructure. As part of the client diversity effort, alternative implementations strengthen the network's resilience while enabling next-generation rollup architectures.

SovraChain: The Complete Picture

SovraChain combines multiple blockchain innovations into a purpose-built identity infrastructure:

SovraChain

Identity Infrastructure for Millions

Ethrex

Execution Client

by LambdaClass

Based Rollup

L1 Sequencing

Max Decentralization

Validium Mode

Off-chain Data

Privacy Protected

Ethereum Layer 2

Inherits L1 Security • Low Cost • High Throughput

Ethereum (L1)

Settlement Layer • Proof Verification • Trust Anchor

Blockchain Technology

Immutability • Decentralization • Transparency

SovraChain is built as a Based Rollup powered by Ethrex, operating in Validium mode to ensure private data never touches the public chain. By using L1 validators for sequencing, it inherits Ethereum's decentralization while keeping sensitive identity information secure off-chain. This architecture delivers the trust, transparency, and privacy required for identity infrastructure—leveraging L2 scaling to serve millions of citizens and institutions at scale, making verifiable credentials practical for governments, enterprises, and entire populations.

Privacy & Security

Selective Disclosure

Selective disclosure allows credential holders to share only specific attributes rather than revealing everything. This is fundamental to privacy in SSI.

Example: Age Verification

Traditional Method

Show ID → Reveals full name, exact birthdate, address, ID number, photo

With Selective Disclosure

Present proof → Only reveals: "Yes, this person is over 21"

BBS+ Signatures

BBS+ is a cryptographic signature scheme that enables selective disclosure. Unlike traditional signatures, BBS+ allows creating proofs that reveal only chosen attributes while maintaining cryptographic verifiability.

How BBS+ Works
1

Issuer signs credential with all attributes using BBS+

2

Holder creates a derived proof revealing only selected attributes

3

Verifier confirms the proof without seeing hidden attributes

Common Applications

  • Age verification without birthdate
  • Employment proof without salary
  • Residency proof without exact address
  • Qualification proof without transcript details

Zero-Knowledge Proofs

Zero-Knowledge Proofs (ZKPs) allow proving a statement is true without revealing any information beyond the validity of the statement itself. This is the ultimate form of privacy-preserving verification.

The Three Properties

1

Completeness

If the statement is true, an honest verifier will be convinced

2

Soundness

If the statement is false, no dishonest prover can convince the verifier

3

Zero-Knowledge

The verifier learns nothing beyond the truth of the statement

Applications in SSI

Range Proofs

Prove age is over 21 without revealing birthdate

Income Verification

Prove income exceeds threshold without exact amount

Membership Proofs

Prove group membership without identifying which member

Credential Validity

Prove credential is valid without revealing contents

Credential Management

Credential management is the systematic process of creating, storing, managing, and revoking digital credentials. It's the backbone of identity and access management.

Credential Types

Password-Based

Traditional username/password

Digital Certificates

PKI-based certificates

Biometric

Fingerprints, facial recognition

Hardware Tokens

Physical security keys

API Keys

Application authentication

Verifiable Credentials

Cryptographically signed, tamper-proof

Best Practices

  1. 1.Automate credential lifecycle management
  2. 2.Implement Zero Trust verification principles
  3. 3.Use multi-factor authentication
  4. 4.Encrypt credentials at rest and in transit
  5. 5.Monitor and audit access continuously
  6. 6.Adopt verifiable credentials for identity verification

Architecture & Standards

SSI Architecture

A complete SSI ecosystem requires several interconnected components:

Digital Wallets

Applications that store DIDs, private keys, and credentials. Enable users to manage identity and selectively share credentials.

Verifiable Data Registries

Systems for creating and verifying identifiers, keys, and schemas. Often implemented using blockchain or distributed ledgers.

Credential Schemas

Machine-readable definitions of credential structures ensuring interoperability between issuers and verifiers.

Revocation Registries

Privacy-preserving mechanisms for issuers to revoke credentials without revealing which specific credential was revoked.

Trust Frameworks

Governance structures defining rules, policies, and technical standards for the SSI ecosystem.

Standards & Specifications

SSI is built on open standards from global standards bodies, ensuring interoperability:

W3C

Verifiable Credentials Data Model

Standard data model and formats for verifiable credentials and presentations.

W3C

Decentralized Identifiers (DIDs)

Specification for globally unique, user-controlled identifiers.

OIDF

OpenID for Verifiable Credentials

OpenID4VCI and OpenID4VP for credential issuance and presentation via OAuth 2.0.

DIF

DIDComm Messaging

Protocol for secure, private peer-to-peer communication between DIDs.

EU

eIDAS 2.0

European framework for Digital Identity Wallets and cross-border recognition.

Ecosystem & Adoption

Reusable Identity

Reusable identity means verifying once and using that verified identity across multiple services. Instead of repeating verification everywhere, credentials are issued once and accepted anywhere.

Trust Once. Use Everywhere.

Traditional

Verify at Bank A → Verify again at Bank B → Verify again at Insurance C → Repeat...

Reusable Identity

Verify once → Get credential → Present to Bank A, Bank B, Insurance C, anywhere

Benefits

Faster Onboarding

Reduce verification from days to seconds

Cost Reduction

Eliminate redundant verification processes

Enhanced Security

Fewer touchpoints mean fewer breach opportunities

Better UX

No more filling out the same forms repeatedly

eIDAS 2.0 & EU Digital Identity

eIDAS 2.0 is the EU's updated digital identity framework. Published April 2024, it mandates Digital Identity Wallets for all EU citizens by 2026.

Core Components

EU Digital Identity Wallet (EUDI)

Secure containers for storing and managing identity documents with granular control over sharing.

Trust Services

Digital signatures, electronic seals, time stamps, and website authentication.

Cross-Border Recognition

Digital identities recognized across all EU member states.

Benefits by Stakeholder

Citizens
  • Simplified access
  • Privacy protections
  • Selective disclosure
Businesses
  • Streamlined KYC
  • Reduced costs
  • Cross-border expansion
Governments
  • Better service delivery
  • Harmonized standards
  • Fraud reduction

Timeline

2026: All EU member states must provide Digital Identity Wallets to citizens

Wallet Business Models

Understanding business models for digital identity wallets is crucial for sustainable ecosystem development. Three primary archetypes have emerged:

Self-Supporting

Wallet operates as financially independent product. Revenue from transactions (like credit card interchange fees).

Example: Small fees per identity verification

Internal Sponsorship

Wallet integrated into broader service ecosystem. Enables primary products even if not profitable independently.

Example: Like gaming consoles driving subscriptions

External Funding

Government grants or public funding. Prioritizes widespread access as public policy objective.

Example: Free wallets supported by public funds

Fee Structures

Verifier Pays Issuer

Most probable model. Service providers compensate issuers per verification.

Issuer/Holder Pays

Less common. For premium services or expedited issuance.

Web3 & Decentralized Identity

Web3 identity enables users to manage digital identities in a decentralized way, emphasizing user control over data rather than reliance on centralized institutions.

Web3 vs. Traditional Identity

Traditional
  • Centralized databases
  • Single points of failure
  • Third-party data sharing
  • Multiple accounts/passwords
  • Provider controls access
Web3 / SSI
  • Decentralized storage
  • No single point of failure
  • Direct user-to-verifier sharing
  • Single identity across apps
  • User owns and controls access

Emerging Use Cases

  • Age verification without revealing birthdates
  • Professional credential verification
  • NFT and digital asset ownership proof
  • Metaverse identity and access
  • Cross-platform reputation systems

Applications

Real-World Use Cases

SSI enables transformative applications across multiple sectors. Each use case includes a 2026 Feasibility Index based on technical readiness, regulatory clarity, and market adoption.

High (4-5): Production-readyMedium (3): MaturingEmerging (1-2): Early stage

Government & Public Services

5/5

Citizen IDs

Government-issued digital identity credentials replacing physical ID cards

5/5

Social Benefits

Eligibility credentials for welfare, pensions, and social programs with privacy controls

5/5

Licenses & Permits

Driver licenses, construction permits, commercial licenses verifiable via QR

4/5

Tax Documents

Digital tax records and filings stored as verifiable credentials for instant verification

4/5

Tokenized Subsidy Delivery

Issue subsidies as blockchain tokens; unused tokens generate returns or revert to government

4/5

Permanent Residence VC

Migration authorities issue digital residency for labor contracts and procedures

3/5

Voting Credentials

Secure, verifiable credentials enabling remote and in-person electoral participation

3/5

Refugee Crisis Identity

Digital identity credentials for displaced populations during humanitarian crises

2/5

Digital Executor

Digital wills executed via executor identity credentials with legal frameworks

Healthcare & Pharmaceutical

5/5

Vaccination Proofs

Verifiable immunization records for travel, school enrollment, and employment

4/5

Medical Records

Patient health records as portable credentials shared selectively with providers

4/5

Digital Prescriptions

Physicians issue prescriptions as credentials; pharmacies verify and dispense digitally

4/5

Provider Licenses

Healthcare professional credentials verified instantly by institutions and patients

4/5

Disability Status Verification

Privacy-preserving credentials for benefits, parking, and discounts via QR

3/5

Insurance Claims

Present diagnostic and policy credentials for claim processing without paperwork

3/5

Travel Health Credentials

Vaccination and medical history credentials for cross-border health authorities

Education & Professional Credentials

5/5

Degrees & Diplomas

University degrees issued as tamper-proof credentials eliminating diploma fraud

5/5

Certifications

Professional certifications from training providers verifiable by employers

5/5

Digital Transcripts

Academic records as credentials for employment and graduate applications

5/5

Skills Badges & Micro-credentials

Courses issue credentials documenting skill development for job portability

4/5

Training Records

Corporate and vocational training completions tracked as verifiable credentials

4/5

Exam Authentication

Identity verification via wallet before online exams prevents impersonation

4/5

School Transfers

Academic history transfers between institutions via credentials rather than paper

4/5

Online Class Access

Single identity enables access across multiple learning platforms seamlessly

4/5

Lifelong Credential Portfolio

Complete career credential history managed in wallet, updatable throughout life

Finance & Banking

5/5

Reusable KYC

Validated KYC data stored as credentials and reused across financial institutions

5/5

Remote Account Opening

100% remote bank account opening via wallet credentials without branch visits

4/5

Credit Scores

Portable credit history credentials shared selectively with lenders

4/5

Account Ownership

Proof of bank account ownership for payments, payroll, and verification

4/5

AML Compliance

Anti-money laundering clearance credentials for regulated transactions

4/5

International Money Transfer

Verified identity reduces friction in remittances and cross-border transfers

4/5

Instant Financial Onboarding

Previously verified identity enables instant signup for new financial products

4/5

Digital Account Closure

Credential-based authentication for secure remote account termination

3/5

Transaction History

Verifiable transaction records for loan applications and audits

Employment & HR

4/5

Work History

Verified employment records from previous employers for job applications

4/5

Professional Licenses

Healthcare, legal, engineering licenses verified instantly by employers

4/5

Background Checks

Pre-verified background credentials reducing hiring time and costs

4/5

Job Applicant Verification

Candidates share experience and education credentials for instant verification

4/5

Social Authority Credentials

Credentials proving authority for officials, police, inspectors

3/5

References

Digitally signed reference letters from previous supervisors and colleagues

Retail & Consumer

4/5

Age Verification

Share age credentials for restricted purchases without exposing other personal data

4/5

Online Shopping Identity

Identity credentials prevent fraud in high-value purchases while improving privacy

4/5

Vehicle Rental

Present driver license credentials and tokenized payment for instant rental

4/5

Loyalty & Membership

Portable membership credentials usable across partner networks

3/5

Correlation Control

Consumers limit data shared with each provider through wallet privacy controls

Supply Chain & Logistics

4/5

Product Authenticity

Authenticity certificates as credentials for luxury goods and pharmaceuticals

4/5

Origin Tracking

Verifiable provenance credentials from farm/factory to consumer

4/5

Compliance Certifications

ISO, safety, and regulatory compliance credentials for suppliers

3/5

Labor Practices

Fair trade and ethical labor certifications verifiable throughout supply chain

3/5

Import & Customs Clearance

Digital certificates expedite customs with verifiable origin documentation

3/5

Vehicle Assembly Tracking

Components receive unique identifiers tracked throughout manufacturing

3/5

Pseudonymous Distribution

Verified pseudonymous identities for logistics agents protecting privacy

Enterprise & IoT

4/5

Credential-Based Access Control

Employees and vendors access sensitive data via credential authentication

4/5

Enterprise Identifiers

Businesses receive verifiable identifiers from chambers of commerce

4/5

Cross-Platform Identity

Credentials shared across platforms without reprocessing or new accounts

4/5

Secure Communications

Credential-authenticated identities establish encrypted communication channels

3/5

Confidential Engagements

NDAs issued as credentials before business meetings or data access

3/5

Device Manufacturing Identity

Each device receives unique identifier during manufacturing for lifecycle tracking

3/5

Device Delivery Verification

Device integrity verified at each delivery stage preventing counterfeiting

3/5

Autonomous Device Setup

Secure initial device configuration using device identity and wallet auth

The Sovra Approach

Sovra implements SSI principles through a comprehensive product suite designed for real-world deployment at government and enterprise scale. Over 8 million citizens across Argentina and Mexico now have access to on-chain verifiable credentials through our platform—with adoption growing daily as more users discover the power of self-sovereign identity.

8M+

Citizens

1.2M

Identities

20+

Government Deployments

The Stack Architecture

The stack comprises four modular, interoperable components that work together to deliver blockchain-grade security with user sovereignty:

Three Pillars

Scalability

Layer-2 performance enabling millions of credentials without blockchain congestion.

Privacy

Zero-knowledge proofs for selective disclosure—prove claims without revealing data.

Sovereignty

Citizen data control via open standards—you own your identity, not a platform.

Our philosophy: Trust once. Use everywhere.

Digital identity is becoming global public infrastructure for the coming decade. By implementing W3C standards, OpenID4VC protocols, and zero-knowledge proofs on Ethereum-based infrastructure, Sovra bridges cutting-edge SSI technology with practical government and enterprise deployment.

Resources

Further Reading

Dive deeper into self-sovereign identity:

Self-Sovereign Identity (Book)

By Alex Preukschat & Drummond Reed. The definitive guide to decentralized digital identity.

Manning Publications →

W3C Verifiable Credentials

Official W3C specification for the VC data model.

Read specification →

W3C Decentralized Identifiers

Official W3C specification for DIDs.

Read specification →

OpenID for Verifiable Credentials

OIDF specifications for credential issuance and presentation.

Learn more →

eIDAS 2.0 Regulation

EU regulation for the European Digital Identity framework.

EU Digital Strategy →
Knowledge Base - Self-Sovereign Identity