Importance of a Self-Sovereign Identity Strategy

The relevance of self-sovereign identity is driven by several factors: advances in artificial intelligence, the adoption of digital wallets by major tech companies, new privacy regulations, and changing consumer expectations. Organizations must decide whether to address this trend as a compliance issue or see it as an opportunity to gain a competitive advantage in the market.

1. Components of a Successful SSI Strategy


It is crucial to identify whether there is a user problem, a business problem, or a growth opportunity that can be solved or improved by using self-sovereign identity. This may include issues such as high dropout rates in registration processes or difficulty accessing reliable user data.


All actors involved in the process need to be mapped out: issuers (who issue verifiable credentials), holders (the individuals who possess the credentials), verifiers (who need to verify identity), and conveners (entities that establish and maintain trust in the system). Additionally, how data will flow through this ecosystem must be defined.

Implementation Decisions

Explore and decide on the technological options and standards to use, design the user experience (UX) to be intuitive and efficient, and determine how to participate in existing or new networks and ecosystems.

2. Use Cases for SSI

Financial Services

An example of a use case is optimizing the client verification process in lending companies. By using self-sovereign identity, a client could pre-fill forms with verifiable data issued by a trusted financial entity, facilitating faster and more secure loan evaluation and approval.

Healthcare Sector

Another example is the validation of credentials for nurses and other healthcare professionals. A decentralized system would allow these professionals to transfer their credentials and certifications from one hospital to another quickly and securely, reducing the time and costs associated with background and skill verification.

Key Features

Key features to consider include data portability (ability to move data from one context to another), privacy (user control over what data is shared and with whom), and composability (ability to combine data from different sources into a single transaction).

You can see more use cases in this section.

3. Implementation Considerations for SSI

Technology and Standards

It is essential not to reinvent the wheel and to leverage the work already done in the field of self-sovereign identity. This includes adopting technological standards that ensure the interoperability and security of verifiable credentials.

User Experience

Designing an experience that meets user expectations and is easy to use is crucial. This may include decisions on how the digital wallet interface is presented, how credentials are managed, and how interactions with verifiers are handled.

Networks and Ecosystems

Deciding on participation in existing consortia or networks that are already working on developing self-sovereign identity systems can be advantageous. These networks can provide the necessary trust infrastructure and facilitate interoperability between different systems.

Differences between Self-Sovereign Identity and Digital Wallets

Although the digital wallet is a crucial tool in the self-sovereign identity system, it is not the center of the strategy. The wallet is just one component that allows individuals to manage and share their verifiable credentials, while the self-sovereign identity strategy encompasses all aspects of the ecosystem, including issuers, verifiers, and data flow.

Participation in Different Trust Networks

In a self-sovereign identity ecosystem, there can be multiple trust networks operating in parallel. The key is interoperability between these networks, allowing verifiable credentials issued in one network to be accepted and verified in another.

AI Implications for Self-Sovereign Identity

Artificial intelligence has two main implications for self-sovereign identity. First, generative AI technologies can compromise traditional identity verification methods, such as facial or voice recognition, highlighting the need for new solutions based on self-sovereign identities. Second, personal AI agents acting on behalf of users will need to use self-sovereign identities to ensure they operate with proper authorization.

4. Conclusion

Self-sovereign identity is transforming how companies and individuals manage identity and personal data. Implementing an SSI strategy not only helps comply with emerging regulations but also offers a competitive advantage by improving user experience and increasing operational efficiency. Starting now to explore and develop these strategies is crucial to be prepared for the changes ahead.

At Extrimian, we can help you with your SSI strategy and the adoption of these solutions.