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An Introduction to Self-sovereign Identity: Take Back Control of Your Data

Marc Lewis
Managing Editor
February 24, 2023
Update
Since this post was written, Hyperledger FireFly has reached 1.0. Learn more here!

Self-sovereign identity refers to a system of identity management where individuals have sole ownership and control over their personal data and identity information, and can share that information with others on their own terms. This is in contrast to traditional systems where centralized entities, such as commercial entities and governmental agencies, control and manage identity information.

Self-sovereign identity is the human-focused application of Decentralized Identity, a technology that can also be used to represent individuals, organizations, or things.

A slide showing what decentralized identity is
A quick comparison of traditional identity solutions versus decentralized options.

Market Push for Decentralized Identity

Self-sovereign identity is becoming increasingly popular because it gives individuals more control over their personal data and how it is used. It allows people to share their identity information only when they want to, and with whom they want to, rather than having their information controlled and potentially misused by centralized entities.

It eliminates the need for a central authority or middlemen, which can reduce costs and improve efficiency. This can be especially beneficial in the context of digital transactions, where self-sovereign identity can facilitate secure and efficient exchanges of value. In the future, self-sovereign identity will enable interoperability with different systems and platforms, which can be useful for creating a more seamless and connected digital experience.

Decentralized identity use case at the DMV
Identification in the context of a car rental offers a good illustration of SSI technology.


Decentralized identity solutions could make data portable and ownable for consumers. It may help institutions that face expanding regulations about how they can accept, handle, and store customer data.

  • General Data Protection Regulation: GDPR sets standards for the collection, storage, and transfer of personal data.
  • Payment Services Directive 2: PSD2 requires financial institutions to protect the privacy and security of customer data.
  • Bank Secrecy Act: BSA imposes restrictions on the cross-border transfer of customer data.
  • Foreign Account Tax Compliance Act: FATCA is a U.S. law that imposes restrictions on the cross-border transfer of customer data.
  • Basel Committee on Banking Supervision: The BCBS is a global standard-setting body that issued several principles and standards related to the protection of customer data in the banking sector, including the cross-border transfer of information.

These regulations can make it difficult to do business across borders. One goal of self-sovereign ID is to make data portable—to give people their data so they can carry it from country to country without violating any regulations.

Conceptual Models from Trust Over IP (ToIP)

The Trust Over IP Foundation aims to create a “trust layer” for the Internet. In a sense, every peer in the network would function as an example of a standard set of protocols, similar to how every device on the Internet operates using the TCP/IP stack. This concept, which includes both technology and governance, consists of two sides and four layers, illustrated below. The lower two layers are dedicated to meeting the technical demands of digital trust, while the upper two layers focus on fulfilling the human requirements.

Trust over IP framework
This image illustrated the 4-layer identity concept from ToIP.

ToIP ensures trust in digital transactions by providing a way to establish the identity, privacy, and security of participants in the digital world. It’s a framework that can be used to verify the identity of participants in a digital transaction, ensuring that the participants are who they claim to be.

By providing mechanisms for protecting sensitive information, such as personal data, during digital transactions, it could prevent unauthorized access and protect the privacy of individuals. With ToIP, users could expect a more seamless and secure experience when conducting digital transactions, building trust and making it easier for users to participate in the digital economy.

Solutions for Self-sovereign Identity

Decentralized identity management offers improved privacy, security, and control over personal information and your online identity, while reducing reliance on centralized entities and increasing interoperability across different systems and platforms. But how can we start to use this technology? A couple production-ready tools in the identity space are Polygon ID and Hyperledger Aries.

Polygon ID

Polygon ID is a platform for decentralized identities using zero knowledge proofs. It’s built on the iden3 protocol, which is an open source project using some common building blocks shared with Polygon’s zk rollup solutions. The iden3 protocol allows the issuers registry to be implemented in Solidity smart contracts and is compatible with any EVM based blockchains, including Ethereum, Polygon and others.

Polygon ID offers on-chain verification and permissionless attestation. It’s backed by zero knowledge proofs and pluggable on the Kaleido platform. Polygon ID brings zk-backed privacy to the table, which is unique to the market.

Hyperledger Aries

Hyperledger Aries is an open source project under the Hyperledger umbrella that provides a toolkit for building decentralized identity applications. It provides a set of libraries, protocols, and standards for creating and using DIDs, verifiable credentials, and other decentralized identity technologies.

The main goal of Hyperledger Aries is to enable secure, interoperable, and privacy-preserving data exchange between individuals, organizations, and devices in various industries and use cases. It does this by implementing a decentralized communication protocol called the Aries protocol, which allows multiple parties to establish a secure and private communication channel and exchange verifiable credentials.

Hyperledger Aries can be used as a building block for various use cases that require decentralized identity, such as self-sovereign identity, decentralized finance, supply chain management, healthcare, and more. It is designed to be modular, flexible, and customizable, allowing developers to choose the components that best suit their needs and integrate them into their existing systems.

Other blockchain identity solutions include Veramo, Serto, Ceramic Network, Identity Index (IDX), Ion, and Sovrin Network. At Kaleido, we'll continue to study these emerging communities and look to support the leading identity tools.

Evaluating SSI Solutions

Decentralized Identity is an emerging technology, so tools used to build self-sovereign identity into applications are maturing too. That makes it important to choose both an identity solution and an underlying platform that allow you to build for the future. A platform like Kaleido, built to be scalable, empower interoperability, and make customizing user experiences easy, will give you the freedom to integrate identity solutions with new and legacy systems.

The future of decentralized identity is incredibly promising, as more and more organizations and individuals recognize the benefits of self-sovereign identity systems. If you want to read more about how this tech might one day impact our life and work, check out this blog on uses cases for decentralized ID.

Build with Polygon ID

Speak to one of our experts about how to use decentralized ID in your app.

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Build with Polygon ID

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Build with Polygon ID

Speak to one of our experts about how to use decentralized ID in your app.

Contact Us

Build with Polygon ID

Speak to one of our experts about how to use decentralized ID in your app.

Contact Us

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