In a time dominated by digital interactions, the need for better digital identity management has never been more clear. Industries using traditional identity systems are slowly catching up to new principles based on self-sovereign identity and verifiable credential technology. Whether they call it self-sovereign identity, decentralized digital identity, or reusable identity, companies and governments are changing their ways. These models, where users have control over their personal information, are gaining momentum because of the security and usability benefits involved for everyone. In this paradigm shift, Software as a Service (SaaS) solutions are becoming very important, offering all of the power of digital identity with (hopefully) none of the complexity.
Understanding Self-Sovereign Identity
In traditional identity systems, all user data is collected and stored in a central database. These databases are secured and queried by a business or government whenever information is needed. Self-sovereign identity represents a shift from traditional identity systems to a model where individuals control their personal information. Verifiable data is stored in an identity wallet owned by the individual or entity to which the data belongs. This means that the data is no longer being controlled by governments or businesses, but the ownership is back with the user. Parties who want to query the data have to request proofs from the owner of the data.
Self-sovereign identity solutions are often implemented through the use of verifiable credentials. A verifiable credential is a digital statement made by an entity about a subject that other parties can rely on and verify. For example, you could have a verifiable credential that proves you can drive (your driver’s license), that you are a paying member of your gym (gym membership) or that you’ve already had 10 cups of coffee and will get the next one for free (loyalty stamps). All verifiable claims could take the form of digital verifiable credentials. These credentials are designed to enable secure and privacy-preserving interactions in the digital world. In short, issuers issue credentials to holders, who store them in their identity wallet and are then able to prove the validity of their claims to verifiers.
SaaS Solutions: Speeding up SSI Adoption
For a long time, anyone working with verifiable credentials had to be ‘in the trenches’, becoming incredibly knowledgeable about specific standards, libraries and frameworks. Because of this, building products was either difficult or expensive, and often both. Software as a Service (SaaS) solutions have opened a different path for people entering the industry. There are several aspects where SaaS products are speeding up the adoption of self-sovereign identity.
Rapid development
SaaS providers can significantly reduce the time required to build and launch SSI solutions. Building a custom identity solution without the help of a SaaS requires extensive knowledge about the technology, the tools and frameworks available, but also about infrastructure and building a robust product. By using a SaaS, identity solutions can focus on bringing value to market quickly instead of spending all of their time building the less glamorous parts of a digital product.
Interoperability
One of the key challenges facing the adoption of self-sovereign identity is the need for interoperability and standardization (we ourselves are currently doing a lot of work making the AFJ framework compliant and interoperable with EU standards. SaaS providers, driven by market demands, are actively working towards creating interoperable solutions that adhere to emerging standards. By choosing a SaaS to build your digital identity solution, you can benefit from their interoperability and compliance efforts. Especially now so much is happening between the European stack (as described in the EU Architecture Reference Framework) and the rest of the world, using a SaaS can save you months of reading through RFCs and Specs.
Accessibility
SaaS solutions lower the access barrier to advanced technologies, making them accessible to smaller enterprises and startups. The affordability of SaaS platforms is playing an important role in bringing verifiable credential technology within reach of a broader audience, not just Big Tech and government. For a subject so impactful as digital identity, it’s essential that organizations and institutions of varying sizes can use the technology and build on it.
Scalability
Even though solutions that use Verifiable Credentials are now gaining some traction, it is still an emerging market. It’s very important for founders (or any builders) of self-sovereign identity products to know how and when to scale. SaaS providers really help in this regard, offering infrastructure that can quickly scale to meet growing user bases. This way, start-ups don’t have to spend valuable time creating huge robust infrastructure. SaaS providers can also make a significant impact financially. By starting on a free tier and only paying as they grow, start-ups can make the most of their often limited budget.
In conclusion, SaaS platforms are the future of the self-sovereign identity market. As the acceptance of verifiable credential technology grows, the interest in solutions using it will grow along with it. Using a SaaS can help solution builders with rapid development, interoperability, accessibility and scalability. For example, Paradym (our low-code SSI workflow builder) enables you to set up and integrate any issuer or verifier flow (in YAML) with your solution within a couple of hours. Ultimately, as Paradym and other SaaS solutions mature, we’ll get closer and closer to widespread SSI adoption.
