Self Sovereign Identity and Web3: From the metaverse to real life

When we talk about Self Sovereign Identity (SSI) we usually think of identity cards, driver’s licenses, Covid 19 vaccination certificates and diplomas. We are selling the merit of the technology, finally allowing us to regain the power of our data and limit the control of large platforms in our lives.

We sometimes imagine the future payment card, but already the possibility of buying or selling verifiable credentials seems remote at the edge of SSI’s perimeter, and economic models are still difficult to set up. Moreover, the fact of using SSI technology for purposes other than the simple protection of user data does not make these projects equally important and qualitative.

At Talao we work on verifiable credentials that take the form of vouchers, coupons, loyalty cards, and other membership cards. The primary purpose is to increase traffic, recruit new customers, and develop the brand’s image and loyalty of its customers. And because web3 applications are sorely lacking in data on their clients, we are applying these technologies to decentralized crypto games, NFT galleries, DeFi and soon the Metaverse. When the added value of SSI is as simple as increasing the site traffic, then the SSI business model is quite simple to set up.

SSI verifiable credentials are like non-fungible token attached to decentralized identifiers (DID)

Verifiable credentials and NFT are similar because they represent a different facet of the same digital identity in a decentralized solution. NFT describes what identity has; verifiable credentials tell what an identity is. Concretely, the identifiers and cryptographic keys supported by an SSI wallet and a crypto wallet are the same and with some DID method as did:pkh DIDs are addresses of a blockchain.

However, if it is possible to sell or buy an NFT, one can only revoke or suspend a verifiable credential. A verifiable credential is a characteristic that can change over time but has no intrinsic market value. Verifiable credentials are off-chain, stored in users’ wallets.

Decentralized applications give users control over their data but deprive platforms of information about their customers.

Since the first bitcoin, the development of crypto exchanges has been carried out between addresses of a crypto wallet in anonymity. This brings the advantage of decentralization. The platforms no longer have access to their customers’ data. Sometimes, this can even have negative consequences for the safety of people.

KYCs are sometimes carried out but it is impossible to link the information entered by a user with the address of its wallet because the blockchain does not carry the data of a KYC for privacy.

KYC data is always reconciled with a blockchain address a posteriori, almost always assuming that the wallet belongs to the user doing the KYC. Suppose you have already carried out a KYC or had a KYC carried out by a provider on the occasion of an ICO, for example. In that case, you know very well that the number of passports received for the same blockchain address is not negligible.

SSI solves this problem because it cryptographically associates a user’s data with a wallet crypto address, which prevents errors or fraud. Moreover, the protection of users’ data is ensured because only the user can decide to transfer all or part of the data to the platform.

SSI makes it easier to rely on traditional economic actuators (Brands) online and off-line to develop traffic and business on decentralized platforms and the Metaverse.

The data carried by verifiable credentials can also be produced by partners, which ultimately establishes with the user’s consent a sort of data exchange channel between decentralized platforms and real-world companies and brands. Therefore, it is possible to relate a real-world event to action in a decentralized application or the Metaverse or vice versa.

What are the concrete possibilities offered by SSI technologies to web3 applications?

The crypto wallet, which has SSI functionalities, can for example, carry the identity of an avatar of a game. This allows the player to capitalize on his or her experience in a game to possibly obtain advantages in other games. We can even imagine using this avatar in a Metaverse or a real environment. It also allows the game creators to develop characters far beyond the mere carrier of an artefact as an NFT.

With this same wallet, it is possible to develop marketing actions with real-world brands to increase platform traffic. The wallet can carry discount coupons to recruit new players or be used as support for a loyalty card for the development of loyalty around the brand (VIP card)… A concrete example is the organization of an event in the real world that would allow certain players to win a discount on the purchase of a game’s artefact. The coupon is transferred by simple scan to the crypto wallet in the real world; then, during the synchronization of the wallet on the game, the coupon is transferred to the platform, which can enhance the advantage obtained in the real world. It is a decentralized affiliation program that respects privacy as the user always decides what data is transferred to who.

It is also possible to ask users for information when logging in. Suppose their wallet has a verifiable credential “Over18” or even a KYC produced and issued as a verifiable credential on a partner’s platform. In that case, this credential can be transferred to the decentralized application and allow access to the application to be secured.

Ultimately the first contribution of SSI is, in many cases, to be able to associate user data by cryptography with a crypto wallet account. This association around the same blockchain address makes it possible to automate the onboarding of the user. It ensures that the data transmitted is indeed the one used for crypto exchanges.

The second contribution is to use the crypto wallet as a storage medium for user data that is not easily manageable in a decentralized environment or that the decentralized application wishes to leave to the user so that they are available for another domain or simply more secure.

A third contribution is to use data presentation standards that allow information to be shared and processed by machines.

The concepts and technologies of SSI are extraordinary; they are the fruit of enormous work carried out at DIF and W3C in particular. Currently, several ecosystems are implementing them in many areas such as health, education and e_government. The SSI is part of the web3; it is precisely the consequence of the deployment of blockchain technologies in the field of identity’s data, and it is particularly suitable for carrying the customer’s data of other web3 applications.