Self-Sovereign Identity – Use Cases
Some description of use cases to understand applications
These are some examples of SSI - Use cases.
Use Case
Know Your Customer (KYC)
Digital Health Passport
Payments
Description/Value
Identity verification remains equally required within both Decentralised Finance (DeFi) and Centralised Finance (CeFi)
With unsatisfactory KYC practices – the need for an efficient and privacy-preserving solution is pressing.
SSI creates a perfect identity layer; a bridge between traditional data heavy interactions and an anonymous DeFi approach.
"In short, current KYC is single-use whilst KYC SSI makes the information re-usable”
SSI also provides traceable and auditable personally identifiable information (PII)
The travel industry probably shows one of the most relatable SSI applications enforced by the pandemic developments.
In the age of COVID-19, this has been made even more complex as another layer of health certification has been added.
There is a huge potential in using global credentials to verify health passports using SSI and digital identity.
One can store encrypted data, such as verified test and/or vaccination results on the traveller’s mobile device, meaning it’s fully decentralised as there is no central repository for this information
Within the Crypto and DeFi space, SSI enables peer-to-peer (P2P) transactions.
One can share a small piece of identity information, i.e. a Telegram handle, to prove who they are without disclosing their identity publicly. This means no more test payments to check wallets.
Another option is doing KYC loan pools without storing the data — instead, only keeping ‘yes’ or ‘no’ answers.
Use Case
Identity Verification for Government Services
Digital Identity Passport
Retail / Consumer Transactions
Description/Value
A use-case for government verification using self-sovereign identity involves enhancing the efficiency of identity verification processes for citizens interacting with government services.
Traditionally to access services such as applying for social benefits, obtaining permits, or accessing healthcare may involve sharing sensitive documents repeatedly.
A digital identity can support verified credentials such as government-issued IDs, proof of residence, and other relevant documents.
Government agencies can adopt a decentralized identity system allowing citizens to present their self-sovereign identity for verification, eliminating the need for silos of data, reducing the risk of large-scale data breaches.
This enables efficient and secure cross-agency/service verification - once a credential is verified by one agency, it can be easily accepted by others without the need for redundant verification processes
One of the biggest challenges facing the travel industry today is the need for passengers to provide a vast amount of personal information to various parties throughout the travel process.
A digital identity can include all personal information and documentation, such as passport and visa details.
This digital identity can then be used to verify identity quickly and easily with various organisations and services throughout the travel process, such as airlines, airports, and hotel.
This eliminates the need to carry physical copies of their documents, which can be lost, damaged, or stolen.
It reduces the time and effort required to provide personal information and documentation making the experience smoother and more efficient.
Travel companies reduces their security risk and liabilities related to storing customer data, as customers only share the minimum details required to verify identities
One use-case for self-sovereign identity in eCommerce involves improving the overall online shopping experience.
Online marketplaces often require users to create accounts, share personal information which can raise concerns about data privacy.
Sellers, too, face challenges in building trust with potential buyers (due to the number of scams).
A self-sovereign identity can be created to hold verified credentials transactions, e.g., address.
Sellers can establish their identity and reputation on the decentralized identity network, through Verified Seller Credentials, e.g., customer feedback and business registration.
Users have control over their personal information, only sharing what is necessary for each transaction.
Sellers can build a trustworthy reputation that carries across different marketplaces, leading to increased buyer confidence