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Self-Sovereign Identity (SSI)

Self-Sovereign Identity (SSI) is a paradigm shift in digital identity management that gives individuals complete control over their personal data and digital credentials.

What is SSI?

Traditional identity systems rely on centralized authorities (governments, corporations, platforms) to create, manage, and verify identities. In contrast, SSI empowers users to:
  • Own their identity data
  • Control who accesses their information
  • Store credentials in their personal wallet
  • Share only what’s necessary through selective disclosure
Think of SSI like carrying a physical wallet with your ID cards, but digital, cryptographically secure, and under your complete control.

Core Principles

SSI is built on foundational principles that ensure user sovereignty:

Self-Ownership

You own your identity data. No one can take it away, modify it, or deny you access.

Control

You decide who sees what information and for how long. Revoke access anytime.

Portability

Take your identity anywhere. Not locked into a single platform or provider.

Persistence

Your identity persists as long as you want it to, independent of any third party.

Minimization

Share only the minimum information necessary. Prove facts without revealing data.

Protection

Cryptographic security protects your data from tampering and unauthorized access.

How SSI Works

SSI operates on a trust triangle between three key actors:

The Three Actors

Who: Organizations that issue credentials (universities, governments, employers, etc.)What they do:
  • Create and sign verifiable credentials
  • Maintain schemas and templates
  • Manage credential lifecycle (issue, revoke)
Example: A university issues a digital diploma to a graduate.
Who: Individuals who own and manage their credentialsWhat they do:
  • Store credentials in a digital wallet
  • Present credentials to verifiers
  • Control who accesses their data
Example: A graduate stores their diploma in Sphyre ALV wallet.
Who: Organizations that need to verify credentials (employers, service providers, etc.)What they do:
  • Request specific credentials or claims
  • Verify cryptographic proofs
  • Make decisions based on verified data
Example: An employer verifies a candidate’s degree before hiring.

SSI vs Traditional Identity

AspectTraditional IdentitySelf-Sovereign Identity
ControlCentralized authorityIndividual user
StorageCompany databasesUser’s wallet
PrivacyFull disclosureSelective disclosure
VerificationContact issuerCryptographic proof
PortabilityPlatform-lockedUniversal
RevocationAuthority decidesUser controls
SecurityHoneypot riskDistributed

Real-World Examples

1

Digital Driver's License

Government issues a verifiable digital driver’s license. You store it in your wallet and show it during a traffic stop without revealing unnecessary information like your home address.
2

Educational Credentials

University issues your diploma as a verifiable credential. You can prove your degree to employers instantly without waiting for background checks.
3

Age Verification

Instead of showing your full ID, you use a zero-knowledge proof to prove you’re over 21 at a bar without revealing your exact birthdate or address.
4

Professional Licenses

Medical board issues your license as a credential. Hospitals can verify your credentials instantly without calling the licensing board.

Benefits of SSI

For Individuals

Privacy Control

Decide what to share and with whom. Use zero-knowledge proofs for minimal disclosure.

Reduced Identity Theft

No centralized database to hack. You control your data, not a company.

Convenience

One wallet for all credentials. No more forgotten passwords or lost documents.

Portability

Use your credentials anywhere, with anyone who supports SSI standards.

For Organizations

Reduced Costs

No need to store and secure user data. Lower compliance and liability costs.

Instant Verification

Verify credentials cryptographically without contacting issuers.

Regulatory Compliance

GDPR, CCPA compliant by design. Users control their data.

Fraud Prevention

Tamper-proof credentials anchored on blockchain. Impossible to forge.

Key Technologies in SSI

SSI is enabled by several interconnected technologies:
Unique identifiers you create and control. Not issued by any authority.Learn more in DID documentation
Digital credentials with cryptographic proofs that can be verified without contacting the issuer.Learn more in VC documentation
Prove facts about your credentials without revealing the underlying data.Learn more in ZKP documentation
Provides immutable anchoring of credential hashes for tamper-evidence.
IPFS and similar systems store credentials without central control.

SSI in Sphyre

Sphyre implements SSI principles through:
  1. did:alyra - Our DID method using post-quantum cryptography
  2. Fortro Engine - Backend infrastructure for SSI operations
  3. Sphyre ALV - User wallet for credential management
  4. IPFS Storage - Decentralized credential storage
  5. Ethereum Anchoring - Blockchain immutability

Challenges & Solutions

Challenge: Different SSI implementations may not work togetherSolution: Sphyre follows W3C standards (DID Core, VC Data Model) for maximum interoperability
Challenge: Cryptography and key management can be complexSolution: Sphyre provides intuitive interfaces with seed phrase backup and biometric authentication
Challenge: Losing private keys means losing access to identitySolution: Encrypted seed phrase backup with multiple recovery options

Standards & Specifications

Sphyre implements these W3C and industry standards:
  • W3C DID Core - Decentralized Identifier specification
  • W3C Verifiable Credentials - Credential data model
  • DIDComm - Secure communication between DID controllers
  • JSON-LD - Linked data format for credentials
  • NIST Post-Quantum Cryptography - Future-proof security

Future of SSI

SSI is rapidly evolving with exciting developments:

Government Adoption

EU’s eIDAS 2.0 mandates SSI wallets for citizens

Mobile Integration

Native SSI support in iOS and Android

Web3 Integration

SSI as foundation for decentralized web

AI & Privacy

SSI for privacy-preserving AI data sharing

IoT Identity

SSI for device identities in IoT

Cross-border ID

Universal digital identity for travel

Next Steps

1

Learn about DIDs

Understand how Decentralized Identifiers work
2

Explore Verifiable Credentials

Deep dive into Verifiable Credentials
3

Try Sphyre

Follow the quickstart guide to create your first SSI wallet
4

Build with SSI

Check out our developer guides to integrate SSI

Additional Resources