Is it possible to maintain control over the vast amount of information circulating in the digital world?
This question lies at the core of "identity sovereignty." The concept suggests that each individual or organization should maintain direct, personal supervision over their own data, without intermediaries. Sovereign digital identity and verifiable credentials are the essential tools for achieving this. Cryptography, Blockchain, and Distributed Ledger Technologies (DLTs) stand at the heart of this approach.
In our hyper-connected environment, digital identities become increasingly valuable assets. Emerging technologies such as GenAI and spatial computing exponentially amplify the volume of personal information processed online. Consequently, the related risks are significant—digital fraud and identity theft have become daily threats.
Verifiable credentials empower users and organizations to control who accesses their private data and under which conditions. These credentials allow their authenticity to be verified in real-time. They provide a personalized, swift, and reliable mechanism to ensure that online interactions are secure and authentic. Unauthorized entities cannot intercept or manipulate this information. Unauthorized entities cannot intercept or manipulate this information.
Blockchain/DLTs: Protection and Decentralization
Blockchain and DLTs play a leading role in this transformation from three critical perspectives:
First, privacy. Blockchain technology is essential for protecting user data, enabling selective, secure, and private information sharing. It only discloses the minimal data needed to complete transactions, ensuring that no additional sensitive information is exposed. For instance, when applying to an educational institution, you can present only the certificate required for enrollment. Similarly, when visiting a doctor, you can share just your medical history—or even prove you're of legal age without disclosing your exact birth date.
Second, distribution or absolute decentralization. Blockchain decentralizes digital identities, ensuring they are not controlled by a single entity, thereby enhancing security, preventing manipulation, and significantly reducing fraud risks. Major platforms such as banks or social networks currently centralize and control vast amounts of digital identities. As a result, centralized systems face a high risk of security breaches, which can expose large volumes of sensitive data.
Third, traceability. Every transaction is securely and immutably recorded, ensuring comprehensive traceability. This means that in the event of a breach or anomaly, every action can be tracked back to its origin to pinpoint accountability.
Identity Sovereignty in Practice
Verifiable credentials supporting identity sovereignty have numerous practical applications.
For example, in voting scenarios, they allow the authentication of voters without compromising anonymity, thus enhancing election transparency. In public services, these credentials ensure access only to eligible users, optimizing both state resources and citizen experiences. In academic and professional contexts, they allow institutions to verify educational credentials efficiently and securely—while ensuring individuals retain control over their personal data.
These examples highlight some of the practical ways blockchain and DLTs are helping create a more secure, trustworthy, and transparent digital environment.