Create an identity that is not controlled by big tech

Traditionally, governments have been the main and most trusted providers of identity proofs, all in physical format. National ID cards, passports, and driver’s licenses are such examples. Around 2005, some nations started digital identity programs with the main purpose of providing online access to government services. Today over 80% of countries with national ID schemes are running some sort of eID program.

In the last couple of years, a new technological approach that inverts the fundamentals of authentication management has increased in popularity: decentralized digital identities (also known as self-sovereign identity or blockchain-based digital identity).

The innovation lies in the capability to obtain digital credentials in a standard format that everyone recognizes and trusts. This includes credentials from universities for your qualifications, airports for your safe traveler pass, or employers for building access. Instead of hundreds of siloed and scattered identities, each servicing a specific purpose, there will be a comprehensive identity controlled by the user. In addition, decentralized identity providers do not store and manage identity information in a central database. Instead, users receive it directly from issuers, store it in their phones, and choose whom they share it with. This will minimize the risk of information tampering and massive hacking attacks.

The idea of using one single identity to access any and all of these services sounds exciting, particularly because its design ensures privacy and security. There is no giant company managing and controlling your data.

There is a growing consensus that decentralized digital identities will extend globally and will become the new authentication standard. Many countries are already deploying decentralized digital identity projects leveraging existing technology providers and W3C standards or running their own implementation efforts.

In order for this to happen, we need to create public-private partnerships where opportunities are identified and tested. If our goal is to advance our economies, compete on innovation, and improve the lives of everyone, then digital identities should be a top priority for governments and regulatory bodies. Will this be easy to achieve? No. Will it be worth it? Absolutely. One thing is clear: first countries to adopt this technology will achieve efficiency levels and new business opportunities beyond our imagination.