- Privacy and control over personal identity data
- Fast and efficient online experiences
- Protection against fraud and identity theft
In this blog, we'll explore the concept of decentralized digital trust solutions and how they enable the premise of self-sovereign identity (SSI). We'll discuss the advantages and disadvantages, and we’ll present an effective path forward.
Self-sovereign Identity
Self-Sovereign Identity (SSI for short) is based on one simple premise: Individuals should own their identity and control how their data is shared. SSI is based on four components:
- Identity wallets that securely store the data in the form of a verifiable credential (VC),
- Identity services that enable individuals to create, store, manage and share their own identities with other individuals and organizations,
- Identity verification services that verify an individual's data through a variety of methods such as biometric authentication, facial recognition, or government-issued document verification, and
- Identity authorization services that control access to the data through a variety of methods, such as passwords, two-factor authentication, or biometric authentication.
The Importance of KYC and Identity Proofing
Know Your Customer (KYC) and identity proofing are two of the most important components of Self-Sovereign Identity. By verifying an individual's identity, organizations can ensure that only authorized individuals have access to their services or products. Additionally, organizations can ensure that they are not dealing with fraudulent or duplicate identities. This can help to reduce the risk of identity theft, which can be a major issue in the digital age.
Trust Registry Networks
With trust as the foundation of every online interaction, a Trust Registry Network plays a significant role in decentralized digital trust solutions.
A Trust Registry Network maintains a list of trusted entities, helping individuals make informed decisions about who to trust with their personal information.
Trust registry networks also help establish standardized protocols for interoperability across different DDI systems, addressing the absence of a universally accepted standard. These standards help mitigate the risk of individuals using identical credentials across multiple systems, and reduce the potential for data duplication, false identities, and identity theft.
Blockchain's Role
Blockchain technology is an integral component of a decentralized digital trust solution. With its decentralized and tamper-resistant characteristics, blockchain provides a transparent ledger for storing Decentralized Identifiers (DIDs), enhancing the security, transparency, and immutability of identity records.
Blockchain-based identity systems, particularly those following Self-Sovereign Identity principles, also enable the selective disclosure of identity attributes. Users can share only the specific information required for a particular transaction, enhancing privacy and minimizing the exposure of unnecessary data during identity proofing.
Benefits of Decentralized Digital Trust Solutions
Decentralized digital trust solutions offer several benefits over traditional centralized digital identities. For starters, it improves the privacy and control of personal data. Since an individual’s identity is not tied to any specific organization or entity, it is much more difficult for malicious actors to track or steal the data and use it for hostile purposes.
Another major benefit is convenience. Since the identity data is stored digitally, it is much more easily accessed and much simpler for service providers to verify.
A Path Forward with Oliu
Oliu provides a decentralized digital trust solution that includes a digital wallet and identity verification services. As a blockchain-identity solution, Oliu enhances KYC compliance, reduces fraud risks, and accelerates identity verification.
Oliu is compliant with the DIACC PCTF (Digital Identity Authentication Council of Canada Pan-Canadian Trust Framework), the Canadian CIO Strategy Council's National Standard for Digital Trust and Identity, and the technical service provider enforcing the joint resolution ensuring the right to privacy and transparency in the digital trust ecosystem in Canada from the OPC (Office of the Privacy Commissioner of Canada). These guidelines ensure Oliu meets the highest standards of trust, privacy, and security.
Are you ready to provide your business and customers with a decentralized digital trust solution?
Act now and join us on the journey towards a more secure digital world.