What is Digital Identity?
(How wallets work, use cases, interoperability.)
Digital identity refers to the electronic representation of an individual, organization, or device within an online system. Digital identity can be used for authentication, verification, and access control across various platforms.
Setting the foundation for decentralized identity and trustless verification)
In a world where online interactions are increasingly becoming the norm, the demand for secure, privacy-preserving, and interoperable identity solutions is more pressing than ever. Traditional identity systems — relying heavily on centralized databases, usernames, passwords, and physical documents — suffer from inherent vulnerabilities like data breaches, identity theft, and the misuse of personal information.
The Problem with Centralized Identity Systems
❌ Single points of failure: Centralized databases are prime targets for hackers, risking mass data breaches.
❌ Lack of user control: Individuals have limited control over their own personal data.
❌ Siloed verification processes: Trust is fragmented, with organizations maintaining their own proprietary systems for identity verification.
The Decentralized Alternative: Self-Sovereign Identity (SSI)
Self-Sovereign Identity (SSI) offers a revolutionary approach where individuals have complete ownership and control over their digital identity. Rather than relying on centralized systems, SSI allows users to manage and share their credentials securely, using blockchain and cryptographic standards.
✅ User Control: Individuals fully control their credentials — no third party can alter, revoke, or misuse them. ✅ Privacy-Preserving: Data is shared only when necessary, through Zero-Knowledge Proofs (ZKPs) if desired. ✅ Interoperable: Works across different systems, jurisdictions, and technologies.
How SSI Works: The Basics
SSI is built on three foundational components:
🪪 Issuers: Organizations or institutions that create and issue credentials.
Examples: Governments issuing national IDs (e.g., Fayda ID in Ethiopia), Universities issuing degrees and diplomas.
Credentials are signed cryptographically to ensure authenticity and integrity.
👤 Holders: Individuals who receive, store, and manage their credentials in a digital wallet (e.g., Fairway Wallet).
Credentials are stored locally and securely, providing users with complete control.
Users decide what information to share, with whom, and for what purpose.
🔍 Verifiers: Entities that request proof of credentials for verification purposes.
Examples: Embassies, employers, universities, banks, or regulatory bodies.
Verification is achieved without the need to contact the original issuer, thanks to cryptographic proof mechanisms.
The Role of Verifiable Credentials (VCs)
At the core of SSI are Verifiable Credentials (VCs) — digitally signed statements issued by trusted parties (issuers) to prove various aspects of an individual’s identity or qualifications.
VCs are tamper-proof, cryptographically signed, and instantly verifiable without requiring a central database.
Built on global standards like W3C DID (Decentralized Identifiers) and VC frameworks compatible with eIDAS 2.0, EUDI, MOSIP, and OpenID.
Why SSI Matters for Governments & Organizations
SSI enables reliable, privacy-respecting, and instant verification of credentials for various purposes:
🌍 Immigration & Work Visas: Governments can verify educational credentials and identity documents without manual checking.
💼 Employment & Recruitment: Employers can access authentic, verified credentials instantly, reducing fraud and speeding up the hiring process.
🏛️ Universities & Certification Bodies: Credentials can be issued in a secure, tamper-proof format, enhancing credibility and global interoperability.
Fairway’s Role in the SSI Ecosystem
Fairway offers a robust SSI-based system designed to integrate seamlessly with national ID systems (like Fayda in Ethiopia), universities, and businesses to provide verified credentials that are easily shareable and instantly verifiable.
For Governments: Enable trusted, verifiable digital IDs for workforce mobility and immigration.
For Universities: Provide graduates with secure, blockchain-backed diplomas and certificates that are universally trusted.
For Employers: Receive credentials that are instantly verifiable and resistant to fraud.
Fairway leverages Verifiable Credentials (VCs) to ensure that credentials can be trusted globally — whether they are issued by a national ID system, a university, or a private certifier. By integrating these credentials into a seamless system, Fairway enables real-time, cross-border verification for a wide range of use cases.
Traditional Identity Models vs. Decentralized Identity
Traditional Identity Models
Decentralized Identity (SSI)
Identity controlled by centralized institutions (governments, corporations).
Identity is user-controlled and stored in self-sovereign wallets.
Relies on third-party databases for verification.
Uses cryptographic proof and Verifiable Credentials.
Prone to data breaches and identity theft.
Privacy-first with selective disclosure.
Requires repetitive identity verification across different services.
One-time issuance of credentials, reusable for multiple verifications.
Limited interoperability between systems.
Open standards (DIDs, VCs) ensure seamless interoperability.
Decentralized identity solutions aim to eliminate the reliance on intermediaries, ensuring that individuals and organizations retain full control over their credentials while enhancing trust, privacy, and security.
Fairway’s SSI approach offers security, privacy, and interoperability. As governments and institutions around the world continue to adopt decentralized identity standards, Fairway provides the necessary infrastructure to ensure seamless, trusted interactions across borders.
🔗 Sources:
Sovrin Foundation - Self-Sovereign Identity: https://sovrin.org/
W3C DID Core Specification: https://www.w3.org/TR/did-core/
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