The 10 definitive benefits of Self-Sovereign Identity

Self-Sovereign Identity (SSI) is transforming the way individuals and organisations manage their digital identity. Unlike traditional centralised or federated models, SSI places control firmly in the hands of the user, allowing them to decide what information to share and with whom, without relying on third parties to manage their identity.

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n line with this philosophy, TrustCloud designs its services with a strong focus on protecting sensitive information—such as personal and financial data—at every stage of a digital transaction. The principles of confidentiality, integrity, and availability form the foundation of all its solutions, including TrustCloud Wallet. 

TrustCloud’s digital identity wallet approach combines ease of use with the adoption of Self-Sovereign Identity (SSI), ensuring that users retain full control over their personal information. 

Let’s explore the benefits of SSI in terms of safeguarding freedom, enhancing technical security, and protecting human rights.

1. Full control over identity

This is the core principle of Self-Sovereign Identity (SSI). Traditional digital identity systems are typically managed by governments, large corporations, or identity providers, meaning users rely on third parties to access essential services. With SSI, digital identity belongs to each individual or entity, allowing them to store, manage, and share verifiable credentials (secure digital documents such as licences or diplomas) that certify information without the need for a central authority. 

This eliminates the risk of a company or government arbitrarily revoking a user’s access to their identity or using their data without consent. 

2. Enhanced privacy and security

Privacy is a key challenge in the digital age. In centralised models, users must share personal information with multiple providers without knowing exactly how their data is handled, increasing the risk of breaches and misuse. SSI introduces the concept of minimal disclosure, allowing users to share only the information strictly necessary. 

Thanks to technologies such as Zero-Knowledge Proofs (ZKP), users can prove they meet a requirement without revealing additional details. For example, instead of sharing a copy of their ID to prove they are over a certain age, they can present a verifiable credential that confirms this fact without disclosing their date of birth. 

Discover TrustCloud Wallet, our digital wallet project based on Self-Sovereign Identity 

3. Elimination of passwords

Passwords are one of the weakest links in digital security. Phishing attacks, brute-force attempts, and password reuse are responsible for millions of data breaches every year. With SSI, users can authenticate themselves using verifiable credentials and cryptographic signatures, eliminating the need to remember multiple passwords and significantly reducing the risk of identity theft. 

4. Global Interoperability

Traditional digital identity systems are often restricted to a specific jurisdiction or closed ecosystem. In contrast, SSI is built on open standards, allowing credentials issued in one country or by a specific institution to be recognised and verified anywhere in the world. 

This makes it easier, for instance, for an individual to use their university credential abroad without requiring additional validation or for a business to verify a supplier’s identity without relying on centralised databases. 

This interoperability is a key aspect of the EUDI project, which mandates that “Member States must provide citizens and businesses with digital wallets that can link their national digital identities with proofs of other personal attributes, such as driving licences, diplomas, and bank accounts,” promoting “a harmonised approach to security and enabling the widespread acceptance of digital identities across the EU.” 

5. Reduction of fraud and identity theft

Identity fraud is a global issue affecting both individuals and businesses, with alarming figures year after year. Users remain vulnerable to: 

• Identity theft: When an attacker uses stolen personal information to open bank accounts, apply for credit, or carry out fraudulent transactions. 

• Impersonation: When a fraudster tricks a victim into revealing login credentials. 

• Document fraud: The use of forged documents to access financial or government services. 

With SSI, credentials are cryptographically verifiable, making them virtually impossible to forge or alter without detection. Additionally, since SSI does not rely on centralised databases, the risk of mass data breaches exposing sensitive information is significantly reduced. 

6. Simplified regulatory compliance

Privacy and security regulations such as the General Data Protection Regulation (GDPR), eIDAS 2.0, and DORA impose strict requirements on how organisations must manage digital identity. 

• GDPR mandates data minimisation and requires that users have control over their personal information. 

• eIDAS 2.0 introduces the European Digital Identity (EUDI), which we mentioned earlier. 

• DORA (Digital Operational Resilience Act), applicable in the European Union, imposes security requirements on financial services, including digital identity management, to reduce the risks of cyberattacks. 

SSI simplifies compliance with these regulations by ensuring that personal data remains under the user’s control and is only shared when strictly necessary. 

7. Lower Costs for Businesses and Institutions

Traditional identity verification is expensive, requiring infrastructure to store, manage, and protect user data. SSI eliminates the need for centralised databases, significantly reducing costs related to storage, security, and regulatory compliance. 

Additionally, the automation of verifications through verifiable credentials lowers the time and resources needed to validate identities in sectors such as banking, education, and healthcare. 

8. Inclusive access to digital identity

Millions of people worldwide lack access to financial or government services due to the absence of official documents. Underbanking and digital exclusion particularly affect vulnerable or remote populations. 

With SSI, recognised institutions can issue alternative verifiable credentials, enabling individuals without official documents to access essential services. This can be crucial in developing countries or humanitarian crisis situations. 

9. Transparency and trust in the digital ecosystem

Digital interactions require trust. In an environment where digital identity is key, SSI ensures that credentials can be verified instantly and securely, without relying on intermediaries. This not only streamlines processes but also strengthens trust between users and organisations, reducing disputes and ensuring authenticity in sectors such as e-commerce, education, and employment recruitment. 

10. Technological independence and decentralisation

Centralised models rely on specific providers who can impose restrictions or change usage conditions. SSI is built on decentralised technologies and open standards, ensuring that digital identity is not tied to a single company or government. This promotes autonomy, giving users greater control and flexibility over their identity in the digital world. 

The dangers of Non-SSI-Based digital identity models 

While we’ve explored the advantages of Self-Sovereign Identity (SSI), it’s equally important to recognise the risks of not adopting it. Many digital identity systems still rely on centralised models, which come with threats worth noting: 

• Vulnerability to Cyberattacks: Centralised databases are prime targets for hackers, as a single breach can compromise large amounts of sensitive data. 

• Lack of Privacy: Users are forced to trust third parties, who may exploit their data for commercial or political purposes, increasing the risk of misuse. 

• Digital Exclusion: Systems requiring centralised validation may leave individuals out, particularly those who don’t meet certain bureaucratic or documentation requirements. 

• Dependence on Specific Providers: A system controlled by a single company or government can become inaccessible if policies change or geopolitical restrictions arise. 

The use of Self-Sovereign Identity (SSI) is the best way to ensure security, privacy, inclusion, and individual control in the digital ecosystem. 

This is TrustCloud’s Identity Wallet 

In short, TrustCloud Wallet is an innovative solution for managing digital identities that simplifies the secure storage of user credentials on mobile devices. It can include a variety of documents, from driving licenses to health and banking records. It leverages mobile phone numbers as unique identifiers and is designed for businesses across various sectors. 

TrustCloud Wallet provides a secure and convenient platform to protect key assets and personal information, ensuring privacy and security across numerous use cases, while incorporating the principles of self-sovereign identity. 

On this foundation, TrustCloud Wallet offers solid advantages, taking into account the needs of the end user and aligning with the values of both public and private companies: 

• Customises the interface to match your organisation’s brand. 

• State-of-the-art encryption to protect user data. 

• Adheres to international legal and regulatory standards. 

• A simple and user-friendly digital verification process. 

• Applicable in both digital and physical settings. 

• Adapts to a variety of functionalities, from payments to contract management. 

• Authentication methods including biometrics and one-time passwords (OTP). 

The adoption of Self-Sovereign Identity not only redefines identity management but also opens up new opportunities for greater autonomy and data control. With its ability to enhance privacy, reduce dependence on third parties, and optimise processes, SSI will be key to a more robust and accessible digital ecosystem. 

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