Data breaches as well as losses are all over the news. If this involves only a few personal details such as first and last name, the damage is manageable. However, nowadays everyone is digitally omnipresent, often with identical data. We entrust such information to companies, online shops, financial institutions, insurance companies, etc. under the assumption that, due to statutory regulations, it will be processed in accordance with the highest security standards. This approach is referred to as a silo because many different data repositories comprise virtually identical data for different purposes.
If this approach was successful, there would be no serious data losses or the need for regulations to protect personal data. Unfortunately, we do not live in this ideal world. Therefore, a new concept is called for: Self-Sovereign Identity or decentralised identifiers.
This new concept restores control over identity data to each data owner. For this purpose, a so-called identity wallet (a digital identifier) is used, which collects and stores verified information on its owner from certified issuers (authorities, etc.)
Similar to a real wallet, you are always in control of your assets, e.g. your credit card, your ID card, etc.
In the event this information has to be disclosed to third parties, this can be done selectively, and usage permission can be revoked at any time. Data is not “submitted”, but access is granted instead. By withdrawing permission, the third party has no right to continue using this data. Thus, we have full control over our own data and benefit from a significantly improved protection against data theft and abuse.