With blockchain to secure digital identity

Whether shopping, consulting with the bank, or contact with the administration: even as a result of the Corona crisis, more and more everyday activities have shifted to the digital world. One question is becoming increasingly important: How can you prove your identity digitally? And quickly, conveniently and securely, so that as little information as possible is stored in places over which the individual has no control, and without third parties finding out, for example, when we identify ourselves to a body.

One possible answer to this challenge is offered by blockchain technology and the so-called Self Sovereign Identity, also known as decentralized digital identity. The digital association Bitkom has therefore published an information paper on this topic, "Self Sovereign Identity Use Cases - from vision to practice," which explains the concept and outlines four concrete use cases in which the technology is superior to conventional solutions.

At its core, decentralized digital identities are about users managing their own digital identities without being dependent on a central identity service provider where, for example, their personal data is stored. Instead, the user receives one-time digital certificates from trusted entities such as government agencies about certain personal identity characteristics, such as address or age, which they can then use for identification and authentication without further consent from the issuer. The blockchain is used to guarantee the legitimacy of the digital certificates issued, which as such do not allow any inference to personal data.

After introducing how they work, the Bitkom paper presents four use cases for decentralized digital identities. For example, they can be used for managing access to buildings as well as for issuing education certificates and exchanging master data.