In the dynamic digital realm, ESelfKey DAO aims to stand out as the premier decentralized solution for digital identity management through the introduction of its flagship product, ESelfKey iD.

ESelfKey iD was crafted with Self-Sovereign Identity (SSID) at its core, aiming to return control of personal data to the user, thereby enhancing the security of digital identity management. 

This characteristic, coupled with the utilization of Zero-Knowledge (ZK) proof and AI-driven proof of individuality, positions ESelfKey iD as the optimal choice for AlphaKEK.

AlphaKEK, an AI laboratory powering Web3 tools and applications with an advanced, impartial AI infrastructure, consistently strives to enhance the value and functionality of its ecosystem. 

Their successful integration of ESelfKey iD SBT into their backend systems is crucial for ensuring the continued compliance and security of the AlphaKEK platform, particularly as it explores more immersive features such as airdrops.

In this article, we will delve deeper into ESelfKey DAO, ESelfKey iD, and the valuable partnership forged with AlphaKEK.

Highlights

• A Brief Introduction to AlphaKEK AI
• ESelfKey DAO’s Digital Solutions: ESelfKey iD
• Partnership Goals
• Conclusions

A Brief Introduction to AlphaKEK AI

AlphaKEK: Pioneering the Future

AlphaKEK.AI stands as an innovative AI laboratory driving Web3 tools and applications with its cutting-edge, impartial AI infrastructure. Deploying a suite of AI apps, AlphaKEK.AI offers the crypto community a distinctive fusion of functionality, entertainment, and utility.

Vladimir Sotnikov, CEO of AlphaKEK.AI, has deep roots in the AI industry, with connections extending to OpenAI and NVIDIA. This trajectory could potentially pave the way for ESelfKey DAO to explore expansion in similar directions down the line.

Exploring Their Mission

AlphaKEK.AI's suite of AI-powered products encompasses conversational and research assistants available on both web and Telegram platforms. 

Leveraging real-time data, advanced analytics, and soon, AGI capabilities, these tools provide tailored, actionable insights for individuals and businesses seeking to navigate and capitalize on the dynamic Web3 ecosystem.

Included in AlphaKEK.AI's offerings are multiple AI Apps, such as a crypto news reports analyzer that continuously scans crypto news sources across the internet, generating regular updates and enabling users to create personalized reports. 

Additionally, there's an uncensored chatbot and a market sentiment analysis tool.

Moreover, AlphaKEK.AI provides a Telegram bot, enabling users to access the latest crypto reports and engage with the AI chatbot directly through the Telegram platform.

ESelfKey DAO’s Digital Solutions: ESelfKey iD

ESelfKey DAO places a significant emphasis on individuality within its framework. In the ESelfKey Protocol, every member's uniqueness is highly valued as a means of safeguarding their digital identity from theft and forgery. 

The goal is to establish a secure environment through AI-Powered Proof of Individuality, enabling valued members to engage in online interactions using trustless and secure methods.

ESelfKey DAO strives to deliver secure digital identity solutions. Leveraging robust credentials in cryptography and blockchain technology, its objectives encompass empowering users with control over their data. 

ESelfKey iD: Revolutionizing Digital Identity Management

ESelfKey iD is a cutting-edge technology with a goal to revolutionize online identity verification. By leveraging its innovative on-chain credential system, ESelfKey iD aims to provide a quicker, more secure, and cost-effective alternative to conventional identity verification methods.

This novel approach to online identity verification stems from extensive research, user feedback, and collaborative efforts. 

Aligned with the vision of industry experts such as W3C and the authors of the soulbound token paper, ESelfKey DAO aims to establish a modern and potentially more secure identity verification solution.

With ESelfKey iD, users may gain complete autonomy over their digital identities. They may efficiently manage, securely store, and selectively share their credentials with chosen parties. 

This may not only foster user confidence but also serve as a deterrent against identity theft and fraudulent activities.

Overall, ESelfKey iD marks a significant advancement in the realm of digital identity verification. It may have the potential to reshape the landscape of online authentication practices.

Partnership Goals

The goal of ESelfKey DAO is to empower individuals to take full control of their private data, enabling them to securely participate in Web3 transactions while preserving their individuality. 

Therefore, this collaboration represents a major stride in improving user experience and security within the AlphaKEK ecosystem, as ESelfKey DAO strives to be a pioneer in decentralized identity services.

User Benefits and Perks

This partnership offers several notable benefits, such as:

• Seamless Identity Verification - Users can effortlessly verify their identities using a ESelfKey iD, thanks to the services provided by ESelfKey DAO for AlphaKEK. This is crucial for maintaining compliance and security standards, especially with the introduction of interactive features like airdrops.
• Discounted Services - AlphaKEK users are entitled to a significant 60% discount on ESelfKey's identity verification service by utilizing the code ALPHAKEK. This substantially reduces the entry fee to just $10, making identity verification more accessible.
• Airdrop Incentives - New holders of ESelfKey iD will receive an airdrop of 50 $SELF tokens, the governance token of ESelfKey DAO. This serves as an attractive incentive for users to engage with ESelfKey's ecosystem and participate in its governance processes.
  
• AlphaKEK Benefits - owning a ESelfKey iD SBT will be equivalent to holding $99 worth of $AIKEK tokens when calculating a user's tier for accessing token-gated AI applications on AlphaKEK. 

For instance, if a user already holds $50 worth of $AIKEK tokens, adding a ESelfKey iD SBT to their portfolio will elevate their total value to $149 worth of $AIKEK for the purpose of tier computation. 

This would make the user eligible for Tier 2. Higher tiers give access to more powerful tools. Read more here.

Future Potential

The partnership between ESelfKey DAO and AlphaKEK presents mutual advantages, fortifying each entity's position within the digital landscape.

For ESelfKey DAO, the collaboration translates into amplified user adoption. Integration with AlphaKEK widens the scope of potential users, drawing more individuals into ESelfKey DAO's platform and ecosystem. 

Furthermore, the partnership enhances the utility of ESelfKey tokens (SELF), incentivizing users to hold and utilize them by offering discounts on particular services and airdrop incentives.

On the other hand, AlphaKEK benefits from strengthened security measures by utilizing ESelfKey DAO's services. This partnership underscores AlphaKEK's commitment to providing a secure and compliant environment for its community, fostering trust among users. 

Additionally, AlphaKEK can streamline operations and reduce costs by entrusting identify verification processes to ESelfKey DAO. This may allow ESelfKey DAO to focus on expanding their AI product suite and core competencies

Conclusions

As we transition further into the digital realm and entrust our personal data to online platforms, the demand for advanced digital identity management solutions surges, promising heightened digital security.

The partnership between ESelfKey DAO and AlphaKEK embodies this need for enhanced digital identity management. 

Through collaboration, they leverage each other's strengths to drive innovation and instill trust within the community. ESelfKey DAO provides cutting-edge services, reinforcing AlphaKEK's commitment to security and compliance. 

In turn, AlphaKEK's focus on expanding AI products allows ESelfKey DAO to concentrate on refining its identity management solutions. This symbiotic relationship not only streamlines operations but also fosters an environment of collaboration and mutual growth.

Stay up to date with ESelfKey on Discord, Telegram, and Subscribe to the official ESelfKey 

Newsletter to receive new information!

Note:

We believe the information is correct as of the date stated, but we cannot guarantee its accuracy or completeness. We reserve the right not to update or modify it in the future. Please verify all information independently.

This communication is for informational purposes only. It is not legal or investment advice or service. We do not intend to offer, solicit, or recommend investment advisory services or buy, sell, or hold digital assets. We do not solicit or offer to buy or sell any financial instrument. 

SELF and KEY tokens, SBTs, and NFTs associated with the ESelfKey ecosystem have no monetary value or utility outside of the ESelfKey ecosystem, are not ascribed any price or conversion ratio by ESelfKey and its affiliates, and do not represent ownership interests or confer any rights to profits or revenues. 

These tokens should not be purchased for speculative reasons or considered investments. By engaging with ESelfKey, you acknowledge and agree to the applicable terms and any associated risks. We recommend consulting with legal and financial professionals before participating in the ESelfKey ecosystem and related transactions.

This document may contain statements regarding future events based on current expectations. However, some risks and uncertainties could cause results to differ. The views expressed here were based on the information that may change if new information becomes available.

The concept of digital identity has been adopted worldwide as a means for people to present themselves and operate in the online space. 

Whether it’s for work, studying, or simply communicating, individuals are able to engage with one another from any corner of the world. But, because of the elusive nature of the internet, it’s difficult to tell whether an individual is who they claim to be. 

This could make engaging with others in the online space rather challenging, even if they are verified. Users may unintentionally share their private information with bad players who could use them for personal gain. Malicious individuals may get access to services or carry out illegal activities in the victim’s name. 

Even more, identity fraud or fake, AI-generated digital identities could influence polls and the decision-making process of a system. All of this could lead to devastating consequences for those whose digital identity has been compromised. 

To prevent this, ESelfKey proposes the following online identity verification solutions: ESelfKey iD and Credential Locking, or proof of humanity locking. 

ESelfKey iD is an innovative online identity verification method which may provide several benefits compared to traditional KYC checks. The process may be less costly, safer and more secure, so that every individual can benefit from its advantages.

This article will be focusing on how ESelfKey iD and credential locking may provide a more accessible means for individuals to authenticate themselves online from all over the world. Through this method, and with privacy and security in mind, ESelfKey is aiming to contribute to the development of a safer, decentralized future. 

Highlights

• The Importance of Digital Identity Security
• SelfKey’s Proposed Online Identity Verification Solutions
• ESelfKey iD and Credential Locking: How it works
• The Benefits of ESelfKey iD and Credential Locking
• Conclusions 

The Importance of Digital Identity Security

Why the safety of digital identity is crucial

Similar to our physical identities, our digital identities encompass all the information that describe us as individuals, such as: name, birth dates, full addresses, social security numbers, personally identifiable information (PII), or personal health information (PHI). 

Nowadays, digital identities have become an integral part of our lives. From social media accounts to online banking, we rely on digital identities to conduct our daily activities. Thanks to the speed and efficiency of the internet, we are able to do these activities at a much faster pace. 

However, with the convenience of digital identities comes the risk of identity theft, which can have severe consequences for individuals and organizations alike. Digital identities can be compromised at any moment, either by: 

• cyberattacks which lead to data breaches, or
• accidentally clicking on a link messaged by a friend or family.

Browsing the internet from the comfort of our own homes may give us the illusion of safety. However, the theft of our digital identities is as alarming as having our physical wallets, with all of our personal documents inside, stolen.

Let us explore some of the negative impacts identity theft can leave us with.

The consequences of identity theft

Identity theft occurs when someone steals another person's personal information, such as their name, address, social security number, or financial details, with the intention of using it for fraudulent purposes. 

The consequences of identity theft can be devastating for the victim, including financial losses, damaged credit scores, and reputational harm.

Moreover, bad players can use stolen digital identities for a wide range of criminal activities. For instance: accessing sensitive information, opening fraudulent bank accounts, and committing tax fraud. These activities can have severe outcomes for the victim and even lead to legal consequences for the perpetrator.

The dangers of sharing private information online

Sharing private information with unknown individuals is also a significant danger when it comes to digital identities. 

Cybercriminals often use social engineering tactics to trick individuals into sharing their personal information. Some methods include phishing emails or fake websites. Once they obtain this information, they can use it to commit identity theft or other fraudulent activities.

This leads us to a serious concern that individuals all around the world are facing nowadays: a lack of proper security measures. 

What can be done, then?

Identity theft and fraud are becoming more common in the digital world, and many individuals struggle to confidently operate online. 

Despite privacy and security being fundamental human rights, most centralized systems still lack adequate security measures. Ideally, a decentralized environment where individuals can exercise their Self Sovereign Identity rights would help prevent data theft. By giving individuals ownership of their private information, cyberattacks would be less likely to succeed.

Given this, SelfKey recognizes the importance of developing decentralized solutions that may allow individuals to operate safely in the digital world. Below, we will thoroughly touch upon ESelfKey’s proposed solutions.

SelfKey’s Proposed Online Identity Verification Solutions

ESelfKey iD is an innovative and cost-effective online identity verification method designed to be more accessible than traditional KYC checks. The lack of recurring fees makes it accessible to every individual who wishes to authenticate themselves online. 

ESelfKey iD uses the power of artificial intelligence (AI) in its online verification process, providing an extra layer of security. In addition to AI-powered verification, ESelfKey iD offers credential locking as a possible solution that may prevent identity fraud and access by fake, AI-generated digital identities. 

All in all, with its focus on security, accessibility, and innovation, ESelfKey iD may become a leading solution for online identity verification.

ESelfKey iD and Credential Locking: How it works

ESelfKey aims to develop a simple and quick online identity verification method. That is why ESelfKey ID is meant to be not only cost-effective, but also user-friendly. This way, individuals may find it more accessible and easy to use.

Credential Locking, or proof of humanity, is a digital identity verification method used to establish that an individual is unique and real. It is used as part of the online identity verification process to confirm that an individual is not a bot, a fake account, or an identity thief.

The process

In the context of ESelfKey iD, Credential Locking may be used as an additional security measure for online identity verification. The following steps may be required:

1. Users must provide a selfie during the initial KYC process. 
2. To access ESelfKey services, users are required to go through additional selfie checks. Their selfies will be compared to the original one taken during the KYC process. 
3. If the selfies match, users will be granted a Credential that can be locked with KEY. This verification process ensures that users' identities are authenticated and that they have a secure digital identity. 

By locking KEY on their Credential, users contribute to the security of the ESelfKey ecosystem. 

How will this provide security on the web?

SelfKey's Credential Locking method may not only provide a secure identity verification process but it may also offer several additional benefits to users. For instance:

• By locking their credentials, users may access exclusive features and services within the ESelfKey ecosystem. This means that users who have locked their credentials may have a higher level of trust and reputation within the network. This may allow them to benefit from additional functionalities that are not available to all users.
• Moreover, locking credentials may also allow users to accrue SELF tokens as a sign of their reputation within the ESelfKey ecosystem. Users can mint SELF tokens only if they can prove their identity by providing a matching selfie during the verification process. This will maintain the security of users’ digital identity and ensure that the ESelfKey ecosystem remains robust and secure.
• Furthermore, users can only withdraw their original KEY tokens if they can provide a matching selfie during the withdrawal process. This may provide an additional layer of security and ensure that unauthorized users cannot access a user's tokens. 

Why provide selfies?

The purpose of providing selfies for the actions stated above is to ensure the users’ digital safety by verifying that they truly are who they claim to be. KEY and SELF tokens can thus be withdrawn or minted only after the user will have been able to successfully verify their identity. 

The goal is to create a system in which users won’t have to worry about identity thieves or fake, AI-generated images being used to compromise their digital assets. By providing selfies, users may ensure that their accounts are secure and their privacy is not violated. ESelfKey’s AI-powered proof of individuality method may be the ideal solution in achieving this goal. 

The Credential Locking method, therefore, may provide a secure and reliable system for identity verification, which benefits both users and the ESelfKey ecosystem as a whole. By locking their credentials, users may:

• protect their digital identity.
• access exclusive features.
• contribute to the security of the ESelfKey network.

The part AI plays

To enhance security in its online identity verification solutions, ESelfKey uses AI-Powered Proof of Individuality to facilitate the selfie matching process. 

AI may prove to be particularly advantageous in this context, as its precision allows for the detection of several crucial factors:

• an individual's liveness.
• identity forgery.
• fake, AI-generated images.

This ensures that the identity verification process is secure and reliable. And that's because AI technology is capable of detecting any fraudulent attempts to game the system. Additionally, it can make sure that the selfies provided during the verification process are authentic. 

By using AI-Powered Proof of Individuality, ESelfKey may be able to provide a trustworthy and robust system for digital identity verification, which is critical in today's digital world.

The Benefits of ESelfKey iD Credential Locking

As stated above, digital identities have become a target for malicious players that seek to exploit others for personal gain. And, with the weak security in some centralized systems, it’s crucial that we look for alternatives. 

Given this, ESelfKey's credential locking method may provide a robust, reliable, and decentralized method for identity verification. It may offer the level of security and privacy that is critical in today’s digital world. Individuals may benefit from peace of mind and ensure that their digital identities are protected from fraudulent activities.

Even more, unlawful access to one’s personal accounts may become very challenging due to the extra layer of protection added by AI. Simply providing a true, authentic selfie can achieve all of this.

Conclusions

The rise of data breaches and identity theft has highlighted the need for a trustless and secure environment for online interactions. Individuals need to have confidence in the systems they use to protect their personal information to ensure the security of their digital identities. 

Unfortunately, centralized systems may fail to provide proper security measures, which often lead to data breaches involving identity theft.

With the use of ESelfKey iD Credential Locking, a much safer network may be available in the future. By locking their credentials, users may prevent identity theft and fraud. Not only that, but they may gain access to exclusive features and services within the ESelfKey ecosystem. 

SelfKey's goal is to develop a secure and trustless environment for online interactions. And that is highly important nowadays, as we become more and more accustomed to operating in the digital world.

Stay up to date with ESelfKey on Discord, Telegram, and Subscribe to the official ESelfKey Newsletter to receive new information!

Note:

We believe the information is correct as of the date stated, but we cannot guarantee its accuracy or completeness. We reserve the right not to update or modify it in the future. Please verify all information independently.

We use the "KYC" term here for general information purposes, without reference to particular legislation. Please check the laws relevant to you and contact us for the details. The term "staking" is used solely as it is described here and does not mean any investment or similar activities.

SELF and KEY tokens, SBTs, and NFTs associated with the ESelfKey ecosystem have no monetary value or utility outside of the ESelfKey ecosystem, are not ascribed any price or conversion ratio by ESelfKey and its affiliates, and do not represent ownership interests or confer any rights to profits or revenues. These tokens should not be purchased for speculative reasons or considered investments. 

By engaging with ESelfKey, you acknowledge and agree to the applicable terms and any associated risks. We recommend consulting with legal and financial professionals before participating in the ESelfKey ecosystem and related transactions.

This communication is for informational purposes only. It is not legal or investment advice or service. We do not intend to offer, solicit, or recommend investment advisory services or buy, sell, or hold digital assets. We do not solicit or offer to buy or sell any financial instrument. 

This document may contain statements regarding future events based on current expectations. However, some risks and uncertainties could cause results to differ. The views expressed here were based on the information that may change if new information becomes available.

As the world continues to advance technologically, we find ourselves more and more immersed in the digital realm. Our digital identities have become just as important as our physical ones, and with this comes the need for secure and reliable online authentication systems. 

However, traditional identity verification methods are becoming increasingly vulnerable to hacking and data breaches. This leads to a growing need for decentralized and more secure alternatives to centralized systems.

SelfKey focuses on providing safer and more reliable identity verification solutions. These options may be easier and more cost-effective than traditional KYC (Know Your Customer) methods.

In this article, we will explore how ESelfKey iD works, as well as its innovative features and benefits. We will elaborate on how it differs from traditional identity verification systems and why it may be a better option for individuals in the digital age. 

Highlights 

• What is a ESelfKey iD?
• How does ESelfKey iD work?
• Minting SBT
• Access to ESelfKey DAO
• Conclusions

What is a ESelfKey iD?

A brief introduction

ESelfKey iD is a cutting-edge technology that may revolutionize the way we verify our identities online. With its innovative on-chain credential system, ESelfKey iD may offer a faster, more secure, and less costly alternative to traditional KYC methods.

This new approach to online identity verification is the result of extensive research, user feedback, and collaboration. ESelfKey shares the vision of industry experts such as W3C and the authors of the soulbound token paper to potentially create a modern and reliable identity verification solution.

With ESelfKey iD, users may have complete control over their digital identities. They may manage their credentials, store them securely and share them only with the parties they choose. This may not only give users greater peace of mind but it might also help prevent identity theft and fraud.

Overall, it may be a significant step forward in the evolution of identity verification. And, it may have the potential to transform the way we authenticate ourselves online.

Why ESelfKey iD?

ESelfKey iD has a clear purpose - to provide companies with a streamlined and efficient KYC process that may improve compliance, reduce costs, and enhance customer privacy. 

By leveraging blockchain technology, ESelfKey iD may offer a more secure and efficient way for companies to verify the identities of their customers. 

This may not only lead to a better experience for customers but it may also aid companies in increasing their profitability. With ESelfKey iD, companies may enjoy a more efficient and secure system, while customers may enjoy a smoother and more hassle-free onboarding experience. 

Ultimately, ESelfKey iD may be a win-win for everyone involved.

Ease of Use

For identity owners or data subjects, the ease of use when it comes to digital identity schemes primarily depends on how easy it is to enroll and use their credentials. 

ESelfKey iD is designed with simplicity in mind, utilizing soulbound tokens so that users may easily produce their credentials using any non-custodial wallet. 

With ESelfKey iD, the enrollment process may be as easy as a one-click option for users, with the heavy lifting happening behind the scenes.

All in all, ESelfKey iD may offer a user-friendly approach to digital identity schemes that may make it easy for users to produce, maintain, and use their credentials. At the same time, it might also provide a secure and decentralized solution that meets the needs of the modern digital age.

ESelfKey iD vs traditional KYC checks

ESelfKey iD may be a better alternative for identity verification, as it may offer a more efficient, secure, and user-friendly approach to KYC.

By using the potential of blockchain technology and smart contracts, ESelfKey iD may provide a secure, decentralized, and efficient identity verification process. It may have the potential to eliminate many of the issues associated with traditional KYC methods, possibly making the process more user-friendly and safe. 

Not only that, but with ESelfKey iD, users may have complete control over their digital identities and they might exercise their SSID rights more easily than ever before. 

How does ESelfKey iD work?

Obtaining a ESelfKey iD is a smooth and hassle-free process that prioritizes user convenience without compromising security and privacy. The streamlined procedure may ensure that users have access to a secure and private digital identity that they can trust.

The process 

By following the simple steps outlined by the platform, users can obtain a ESelfKey iD quickly and with ease. The steps are as follows:

1. Users must first log in with their wallet and pay an entry fee.

2. The next step would be to undergo a KYC verification process. This method is designed to ensure that the user's identity is authentic and that they meet the necessary eligibility criteria.

The verification process typically consists of: 

• performing a selfie check.
• providing personal information, such as name and address.
• providing government-issued identification documents, such as a passport. 

Additionally, users will not be able to create duplicate accounts.

3. Once the KYC process is complete, legible users are automatically approved.

4. The final step in the process is to mint the soul-bound ESelfKey ID NFT. This unique digital asset is generated using blockchain technology and is securely bound to the user's digital identity.

It might serve as proof of identity (POI) and it may be used to authenticate the user's identity in a variety of settings, such as:

• online marketplaces.
• financial institutions.
• other digital platforms, such as social media and videogames.

Even more, as the concept of the metaverse gains popularity, the need for secure and reliable digital identities becomes increasingly important. ESelfKey iD emphasizes privacy and self-sovereignty. Therefore, it may be the perfect identity credential for the exciting products and services of the future.

Minting soul-bound ESelfKey ID NFT

Aggregating Multiple Credentials

By combining different SBT (soul-bound tokens) and identity credentials, ESelfKey iD may provide a higher level of verification for the user's identity. 

Credentials which may be aggregated by a ESelfKey iD include, but are not limited to: 

• Metaproof.
• KYC credentials issued by ESelfKey Network issuers.
• Traditional accounts, such as: Google, Apple, Discord, Github, Twitter, and the likes.
• Various identity tokens, such as Binance’s BAB token issued in 2022.

This implementation may have significant advantages over individual credentials, as it may increase the reliability and accuracy of identity verification. And, an increase in reliability and accuracy is crucial for online interactions and services that require trust between parties. 

The more credentials added to the ESelfKey iD container, the more trust may be established, and the more reliable and secure the user's digital identity may become.

Furthermore, the integration of multiple SBTs and identity credentials within a ESelfKey iD container might provide users with unparalleled flexibility. This may enable them to add as many credentials as they require to establish their identity in a variety of contexts. 

This feature may enhance the ESelfKey platform's versatility and utility. It might make it more appealing to individuals and institutions seeking a reliable and secure digital identity solution.

Essentially, ESelfKey's implementation of an aggregated credential system in its platform may be a significant step forward in the development of a strong and reliable self-sovereign identity ecosystem.

Attaching NFT series to ESelfKey iD

ESelfKey continues to prioritize user-friendliness with the introduction of a unique feature that may enable users to attach a distinct NFT series to their ESelfKey iD profile picture. This feature may add a touch of personalization and uniqueness to the user's digital identity. Even more, it might reflect the growing trend of NFTs in the crypto space.

Additionally, it may also enhance the user's experience by providing them with more options to personalize and showcase their digital identity. 

Ultimately, the addition of the NFT series feature to the ESelfKey iD platform reflects the platform's continued focus on user-friendliness, personalization, and innovation. 

Access to ESelfKey DAO

Obtaining a ESelfKey iD may provide users with numerous benefits that enhance their experience on the platform and beyond. 

These benefits may include:

• access to the governance of the ESelfKey Protocol.
• the ability to mint SELF tokens.
• participating in locking a POI credential.
• exclusive access to member-only channels on Discord.
• obtaining exclusive collectible NFT packs.
• registering for KEY.ETH ENS domains.
• enjoying instant login to partner apps.

Minting SELF tokens

Having access to the ESelfKey DAO may enable users to mint their own SELF tokens. The token might then be used for various purposes and services on the ESelfKey platform. 

This feature may add value to the user's experience and may provide them with more control over their digital identity.

Locking

By locking KEY tokens on their KYC credential, users may mint SELF tokens. Locking credentials may be a way for individuals to demonstrate confidence in the accuracy of their data. This, in turn, may increase the validity of their credentials. Users may withdraw tokens at any time, although this will result in the termination of SELF token generation.

Exclusive Discord Channels

Access to member-only Discord channels may be another perk of having a ESelfKey iD. It may provide users with a community to engage with other DAO members through a designated channel. DAO members may also discuss proposals for the governance of the DAO. 

NTF packs

Exclusive collectible NFT packs may also be available to ESelfKey iD holders. This may add a unique and personalized touch to their digital identity. These collectibles are released by the ESelfKey DAO, further enhancing their customization and originality.

KEY.ETH ENS domains and ESelfKey iD

Moreover, ESelfKey iD holders may register for KEY.ETH ENS domains. This might enable them to create unique and easily identifiable domains for their online identity.

Instant login to partner apps

Instant login to partner apps may be another advantage of having a ESelfKey iD. This may provide users with a seamless and secure login process across multiple platforms.

Ultimately, the benefits of having a ESelfKey iD express the platform's commitment to providing users with a comprehensive, valuable experience. It may enhance their ability to navigate the crypto space with ease and confidence.

Conclusions

In theory, ESelfKey iD may be a strong and reliable form of digital identity that might be used for a broad range of use cases in the crypto world. With its focus on user-friendliness, security, and privacy, the ESelfKey iD may be well-suited to the needs of decentralized societies and Web3 applications.

However, ESelfKey iD may also be suited for traditional Web2 platforms that want to benefit from security and anti-bot features inherent to the ESelfKey iD system.

ESelfKey iD may not only empower the governance of the ESelfKey DAO but it may also provide a model for other decentralized governance systems. By offering powerful, privacy-preserving identity credentials, the ESelfKey iD might enable more fair and democratic governance. This way, users may have greater control over their data and identities.

The ESelfKey DAO aims to provide new forms of decentralized governance, which may allow members to experiment with different approaches and explore the full potential of the ESelfKey iD. 

As the crypto world continues to evolve, the ESelfKey iD might play an increasingly important role in enabling secure and transparent transactions across a wide range of platforms and applications.

Stay up to date with ESelfKey on Discord, Telegram, and Subscribe to the official ESelfKey Newsletter to receive new information!

Note:

We believe the information is correct as of the date stated, but we cannot guarantee its accuracy or completeness. We reserve the right not to update or modify it in the future. Please verify all information independently.

This communication is for informational purposes only. It is not legal or investment advice or service. We do not intend to offer, solicit, or recommend investment advisory services or buy, sell, or hold digital assets. We do not solicit or offer to buy or sell any financial instrument. 

SELF tokens have no monetary value and are not ascribed any price or conversion ratio by ESelfKey and its affiliates. Additionally, SELF tokens do not confer any right to participate in any profits or revenues or represent any ownership interest. SELF tokens may have value and utility solely within ESelfKey.

The purchase of a KEY token is not an investment. KEY tokens should not be bought for speculative reasons. A KEY token does not give any right to profits, and it does not represent any ownership interest. KEY tokens may have value and utility solely within ESelfKey.

This document may contain statements regarding future events based on current expectations. However, some risks and uncertainties could cause results to differ. The views expressed here were based on the information that may change if new information becomes available.

We use the "KYC" term here for general information purposes, without reference to particular legislation. Please check the laws relevant to you and contact us for the details.

Nowadays, most individuals operate in a digital environment where transactions and communication are made online. As a result, digital identity verification has become a very important aspect of online security and compliance.

KYC (Know Your Customer) is one of the most widely used methods for verifying the identities of users and clients. While KYC has been effective in assuring security and regulatory compliance, it has some significant drawbacks. KYC can be time-consuming, expensive, and difficult for users, potentially resulting in losing customers and missing business opportunities.

ESelfKey addresses this issue by proposing a potential solution to these issues with ESelfKey iD. 

ESelfKey iD is a revolutionary approach to identity verification that could be faster, more secure, and less costly than traditional KYC methods. It uses the power of blockchain technology and smart contracts to potentially offer a secure, decentralized, and efficient identity verification process. This can possibly eliminate many of the issues associated with traditional KYC methods.

With ESelfKey iD, users can create a self sovereign identity that they can control, giving them more privacy and full ownership over their personal data.

In this article, we will elaborate on the drawbacks of traditional KYC methods. We will also examine the advantages of ESelfKey iD, its features and benefits compared to traditional KYC. Additionally, we will explore the potential impact of ESelfKey iD on the future of digital identity verification.

Highlights 

• KYC: Potential Issues to Consider
• The Benefits of ESelfKey iD
• High-Level Flow
• Quick Relying Party Onboarding
• The Issuance: ESelfKey iD NFT User Flow
• The Verification: ESelfKey iD User Onboarding
• Reusable KYC and ESelfKey iD
• ESelfKey iD New Project Setup
• Conclusions

KYC: Potential Issues to Consider

Even though KYC has become a commonly used procedure in many industries, it has its drawbacks.

Here as some examples:

• The collection of personally identifiable information (PII) for KYC purposes comes with legal responsibilities and storage costs, which can take a toll on companies. 
• Users have a tendency to dislike KYC checks, finding them intrusive and time-consuming. This can lead to lower conversion rates and a negative first impression for potential customers. 
• Implementing KYC can be a difficult and expensive process, further adding to its disadvantages. 

Perhaps the time to explore alternative ways of verifying customer identities has come. With ESelfKey iD, you can explore methods that are less tedious for all parties involved.

The Benefits of ESelfKey iD

As stated above, KYC processes can be inconvenient for both companies and customers alike. However, ESelfKey’s Ai-Powered Proof of Individuality method along with ESelfKey iD can potentially become a better alternative to KYC.

Here are some of ESelfKey.iD’s benefits: 

• The overall process is easier and less costly, making it more accessible for users. 
• The onboarding process is quick.
• Ongoing monitoring makes sure that customer data remains accurate.
• Existing KYC checks are reused, thus the need to collect and store PII repeatedly is no longer an issue.
• Costs for companies are reduced, but also improves customer privacy and security.
• It provides powerful compliance tools, ensuring that companies remain in compliance with regulations and laws. 

By using ESelfKey iD, companies can streamline their KYC processes, reducing costs, enhancing customer privacy, and improving compliance. Ultimately, this results in a better experience for customers and a more efficient and secure system for companies.

Below, we will discuss some of ESelfKey iDs benefits more in depth.

High-Level Flow

ESelfKey iD enables zero-knowledge interactions between individuals, making sure that users' data is kept private and secure. With ESelfKey iD, the user's data does not reach your server. This adds to user privacy and prevents potential data breaches.

Furthermore, the onboarding process is quick and simple. 

When a user with a ESelfKey iD visits your server, they are checked to determine if they match your filter. If they do, they can be onboarded instantly, simplifying the process and reducing the time and resources required.

By using ESelfKey iD, companies can provide a secure and efficient onboarding process that prioritizes user privacy and security. The zero-knowledge interactions and instant onboarding features make it a better alternative to traditional KYC processes.

Quick Relying Party Onboarding

To streamline the onboarding process, the following steps are required:

1. Sign up at ESelfKey iD to create your user filters.
2. Add these filters to your smart contracts.
3. When a user attempts to run your smart contract function, the system will check if they have a ESelfKey iD NFT. If they do not have one, they will be prompted to get one.
4. If the issuer has a ESelfKey iD NFT, they will then be able to verify whether the user matches the filter that you have set for the transaction. If they do, the user will be granted access to your server. If not, the user will be denied access.

Following these steps, companies can implement a more efficient and secure onboarding process that prioritizes user privacy and security. 

ESelfKey iD's NFT-based system ensures that only authorized users are given access to the company's services. This reduces the risk of relying parties allowing access to unauthorized individuals to their services.

The Issuance: ESelfKey iD NFT User Flow

The issuance process for ESelfKey iD is outlined below:

1. The user visits your project and is redirected to ESelfKey iD, in case they do not already have one.
2. The user pays for the verification check.
3. The user goes through the verification process, and the issuer stores their data. Ongoing monitoring of the account begins.
4. If the user passes the checks, the issuer releases a credential that verifies the user's humanity, uniqueness in the database, and verified data.
5. The user then mints their own ESelfKey iD NFT.

By following these steps, users can obtain a ESelfKey iD NFT that verifies their identity and potentially provides access to various projects that use the ESelfKey iD platform. 

The verification process may grant access only to authorized users, providing enhanced security and privacy for both users and companies.

Enhanced security offers several benefits such as:

• Anti-bot security. This measure prevents automated attacks by detecting and blocking suspicious or malicious bot traffic.
• Fraud protection. Malicious individuals often use bots for fraudulent activities like creating fake accounts or generating false clicks to generate revenue. Implementing anti-bot security measures helps to identify and prevent such fraudulent activities, keeping the business and customers safe.
• Improved user experience. Bots can significantly hinder the user experience by slowing down websites or making it difficult for users to access information. Anti-bot security measures ensure that legitimate users can access the website or service without interruptions or delays.

The Verification: ESelfKey iD User Onboarding

The onboarding process for ESelfKey.iD is as follows:

1. A user with a ESelfKey iD visits your project.
2. You request that the ESelfKey iD issuer checks the user's information.
3. The issuer verifies whether the user's data matches your filters.
4. The issuer sends a signed message confirming the user's status. 
5. If the user is verified, they can be onboarded, and the signed message can be used to authorize transactions.
6. The relying party (issuer) is billed for the verification check.

Through this process, companies can implement a more efficient and secure onboarding method that prioritizes user privacy and security. 

ESelfKey iD's NFT-based system may allow access to the company's services only to authorized users. The use of a signed message adds an extra layer of security, offering further assurance that the user's data has been verified by the relying party.

Reusable KYC and ESelfKey iD

The benefits of using reusable KYC with ESelfKey iD are as follows:

• Your project subscribes to ESelfKey iD.
• Your project can be featured on the ESelfKey iD website.
• A user with a ESelfKey iD NFT visits the ESelfKey iD website.
• The user scrolls through the list of projects that support ESelfKey iD.
• The user can potentially choose your project from the list.
• The user quickly onboards to your project using their existing ESelfKey iD NFT.
• Your project profits from the seamless onboarding experience.

ESelfKey iD's reusable KYC system could provide companies with a more streamlined onboarding experience for users. Users can easily access multiple projects without having to go through the time-consuming and costly process of verifying their identity each time.

Additionally, companies benefit from increased user adoption and loyalty, as the reusable KYC system encourages users to choose projects that support ESelfKey iD. Overall, this system offers a win-win situation for both companies and users alike.

ESelfKey iD New Project Setup

Setting up a new project with ESelfKey iD is quite easy. Below, we will detail a few steps which you need to consider.

The project onboarding process is as follows: 

1. Go to the ESelfKey iD website.
2. Register for a new account.
3. Add your company privacy policy to your account.
4. Choose a subscription pack that suits your needs.
5. Set up filters to verify your users' identity.
6. Your project is now ready to implement the filters into your system.

ESelfKey iD's easy-to-use platform could offer companies a quick and efficient way to set up their project's identity verification process. The platform provides a range of subscription plans to choose from, depending on your business's specific requirements. 

With the ability to customize filters for your users, you can ensure that only authorized individuals can access your platform, enhancing security and trust. 

Overall, ESelfKey iD's new project setup process offers a simple and effective solution for individuals looking to integrate identity verification into their systems

The Library Implementation

To implement ESelfKey iD into your project's system, follow these simple steps:

1. Implement the backend library onto your server.
2. Prepare the front-end to handle calls for authorization.
3. Implement the ESelfKey iD smart contract into your own smart contract.
4. Your project is now ready to onboard users.

By following these steps, you can integrate ESelfKey iD into your project's system and take advantage of its powerful identity verification capabilities. With the backend library in place, your server will be able to communicate with ESelfKey iD to authorize user access. 

By integrating the smart contract into your own contract, you can ensure that only authorized individuals can access your platform, boosting security and trust. 

All in all, ESelfKey iD's library implementation process offers a robust solution for businesses looking to enhance their identity verification capabilities.

How the Profile Builder Functions:

ESelfKey iD's Profile Builder is a tool that allows you to create customizable filters for your project. You may use these filters to sort and manage users based on specific criteria.

The Profile Builder allows you to create multiple filters, which you can implement separately on your project. This means that you can have different filters applied to different sections of your app or website, depending on your specific needs.

For example:

• You could create a filter that accepts citizens of Country A for one section of your app, but another filter for the same project that excludes citizens of Country A from another section. 
• This level of detailed filtering allows you to match regulatory requirements while also boosting the benefits of your app.

To set up the Profile Builder, you would first define the standards you want to filter by, such as citizenship, age, or profession. You can then apply rules and conditions to each filter to create a customized sorting system.

For the most part, the Profile Builder in ESelfKey iD could provide a flexible and powerful tool for managing user data and creating a tailored experience for your app's users.

Conclusions

ESelfKey aims to provide a comprehensive solution that addresses the needs of both businesses and users. 

The benefits of ESelfKey iD could include efficient, secure, and cost-effective KYC checks, streamlined onboarding, and better conversion rates. Additionally, ESelfKey iD's approach to privacy ensures legal compliance and reduces costs associated with PII storage. 

Even more, with a user-friendly one-time KYC process and access to multiple projects on the website, ESelfKey iD offers convenience and ease of use for users. ESelfKey iD's project features and powerful user filtering tools could enable businesses to match rules and increase profitability. 

Stay up to date with ESelfKey on Discord, Telegram, and Subscribe to the official ESelfKey Newsletter to receive new information!

Note:

We believe the information is correct as of the date stated, but we cannot guarantee its accuracy or completeness. We reserve the right not to update or modify it in the future. Please verify all information independently.

This communication is for informational purposes only. It is not legal or investment advice or service. We do not intend to offer, solicit, or recommend investment advisory services or buy, sell, or hold digital assets. Additionally, we do not solicit or offer to buy or sell any financial instrument. 

We use the "KYC" term here for general information purposes, without reference to particular legislation. Please check the laws relevant to you and contact us for the details.

This document may contain statements regarding future events based on current expectations. However, some risks and uncertainties could cause results to differ. The views expressed here were based on the information that may change if new information becomes available.

Have you ever wondered what happens to your personal data once you share it with a website or an application? Have you thought about where your information is stored and who has access to it? Were you aware that data breaches happen daily and your information is at risk of being compromised at any time? 

This article touches upon a new technology which is currently being developed to help you manage your private information online. In the near future, you will no longer have to rely on other parties that might put your sensitive, valuable, or personal data in danger. 

We’ll be discussing the concept of self sovereign identity (SSID), how it works and how it impacts our daily lives as individuals operating in a digital world.

We will thoroughly cover the following topics:

• Online Safety
• How will Self Sovereign Identity improve our online activities?
• Self Sovereign Identity
• Issues with the current implementation of Self Sovereign Identity
• How can the current Self Sovereign Identity implementation be improved and scaled?
• The Trust Triangle
• Agents of The Trust Triangle
• Trust in the digital world
• The Three Pillars of Self Sovereign Identity
• Blockchains
• Decentralized Identifiers 
• Verifiable Credentials
• Zero Knowledge Proofs
• Conclusions

Online Safety

Digital revolution: both a blessing and a curse

In the past several decades, mankind has shown magnificent progress in computer science. So much so that society quickly became accustomed to using Information and Communication Technologies on a daily basis. Whether it is for recreational purposes, communication, work or education, mundane tasks are made significantly easier with the help of cutting-edge technology and wireless systems. 

Artificial Intelligence (AI) is capable of performing convenient assignments, such as reading, generating, integrating, and theorizing information. However, it is also heading dangerously fast towards mimicking a trait which, up until now, has been uniquely human: identity. 

When personal data is leaked, AI can potentially make use of that information to steal or forge human identities. Thankfully, the future will also bring ways to prevent that. A Self-Sovereign Identity solution is being developed to protect our data from being stolen and sold.

How safe is it really out there?

Using technology and having a digital presence has become so common nowadays that many people don’t think twice about the security of their personal information. 

Although they are within the safety of their homes, their data is still potentially visible to millions of users online. Among those millions, there are many individuals with bad intentions, who look for ways to use other people’s private data for their own personal benefit.

More often than not, however, it is entities that individuals are supposed to trust who end up selling or divulging their personal information to other parties. And those parties, whether willingly or not, will put that personal information at risk of being unlawfully used by bad players.

At the moment, unfortunately, people have come to depend on centralized systems in order to benefit from online services to perform their daily tasks. Without those online services, it would be impossible for individuals to function in the present day society. 

It is more of an obligation rather than a choice,and it has become so normal that we simply go with the flow. Otherwise, we will not be able to keep up with the fast-paced changes in the way we work, study, and communicate.

Our digital identities

Personally Identifiable Information (PII) belonging to individuals, firms or organizations is being stored online in the form of digital data. This collection of digital data is then used to build our digital identity.

A digital identity is used to facilitate access to services that make it easy for computers to efficiently mediate transactions between two or more individuals. The web provides us with a quick way of performing these transactions. However, it is not the safest place to store our private information. 

Data breaches happen on a daily basis without our knowledge. Through data breaches, important and valuable information can be stolen and sold, including our very own digital identities.

Ideally, individuals should be able to make use of the advanced, modern day technology without the risk of their private data ending up in the wrong hands. In order for that to happen, individuals need to have more control over how their information is stored and who has access to view or share it, at all times.

The illusion of choice

Nowadays, control seems less impactful on our lives, because the deception of freedom is given to us through choices. However, when access to necessary modern applications is being restricted unless personal data is consensually shared, choice becomes an illusion.

With the choice to opt in being enforced, people have grown used to accepting the privacy policies of applications without a second thought. These policies, that we barely even bother to read, do mention how data is shared with third parties. However, we cannot do anything but blindly trust that service providers will not abuse or mishandle our data.

At the moment there is only the illusion of consent, of trust, all in the detriment of the individual. Because of this deceitful way of forcing users to consent to their data being used, trust between individuals is becoming more and more difficult to establish.

SSID aims to dispel these illusions and bring authentic consent and trust to the mainstream.

Seeking safety in a digital world

Sadly, Big Tech often profits off of individuals at the expense of the latter’s safety, which may lead up to identity theft. 

Many users are unaware of the unlawful incidents happening underneath the brightly colored backgrounds of websites and applications as they perform their daily online tasks. Living under the impression that, as long as there is no malware alert on their devices, they have nothing to be concerned about. 

The alarming truth, however, is that security violations occur on a daily basis. These cumulative cyber attacks can potentially cause millions of dollars in damages to the individuals whose data was involved.

How will Self Sovereign Identity improve our online activities?

Fortunately, a solution to the above-mentioned risks is currently being developed by ESelfKey. It will be the sword and shield for individuals to function and perform transactions in the safest way possible. 

Self sovereign identity not only gives back the freedom of choice, but it also prevents this kind of disaster from happening. SSID users give access only to individuals that they wish to engage with. During this interaction, only a very limited amount of information is shared.

Therefore, sensitive, protected and important data is less likely to be sold to or shared with harmful individuals and organizations. Self sovereign identity was conceived to prevent data leakage in this sense. It gives users the power not only to manage and control, but also to protect what they deem valuable. 

Self Sovereign Identity

A brief introduction

Self sovereign identity (SSID) is a new way of managing digital identities, which aims to put individuals in control of how their accounts and private information are managed. With SSID, individuals have full ownership over their personal data. They no longer need to rely on centralized systems that might share their data with unknown parties for personal gain. 

Users can store their private information into their devices and present it for validation when it is specifically needed. This way, the risk of having their data compromised is considerably reduced. Individuals are in complete control over how their information is used and stored, at all times.

How self sovereign identity is currently being implemented

Once Self Sovereign Identity users store their private data on their devices, they can quickly take the opportunity to interact with trusted partners. In order to benefit from the services offered by these trusted partners, users need to accept the processing of their information by the partners. This is declared by the relying party once the user attempts to onboard into their services.

Issues with the current implementation of Self Sovereign Identity

Adoption and Convenience

At the moment, SSID users must store their data on their private device instead of the traditional central database. This method allows the users to have full control of their personal data. On the down side, the flow by which users interact with the system is less convenient than centralized alternatives. 

Storing data on one private device makes it difficult for it to be accessed by the user’s other devices. Individuals have to manually introduce their information into devices they want to use, which can become time consuming and frustrating.

Scalability

Currently, users can only exercise their self sovereign rights with partners within the SSID environment. More so, individuals need to trust that the parties they choose to interact  with will handle their personal data with respect to their privacy and store it securely.

How can the current Self Sovereign Identity implementation be improved and scaled?

Should we use Centralized Systems for convenience?

Centrally controlled systems are databases in which an individual’s digital identity is stored in one or more servers belonging to a centralized entity. Once personal data is stored in this type of server, an individual has no way of knowing who has access to it, who it is shared with, or where it ends up. 

When personal data is being shared with unknown, third parties, there is a high risk of unintentional information disclosure. This can lead to dire consequences like identity theft or secret information being disclosed to the public, stolen or sold. 

While centralized systems are not necessarily malicious, their security is weak, which leads to data leakage. With AI progressing alarmingly fast, this is a particularly serious concern. As a conclusion, centralized systems can not be used to improve the adoption and scalability of SSID solutions.

Are Decentralized Systems a better option?

On the polar opposite of centralized systems are decentralized systems. This type of system stores and verifies information in multiple computers that work together as nodes in a network, popularly known as a blockchain. 

By transferring the control from a centralized entity to a dispersed group, decentralized systems aim to reach a level of fairness among its users, without one individual having authority over the other. 

The way data is stored in a decentralized system makes it very difficult for malicious parties to manipulate it, because it is secured by the blockchain. A decentralized system is perfect for storing public and openly-accessible data, such as a record of transactions.

However, storing personally identifiable information (PII) in a decentralized system is highly unadvised, even if it is encrypted. PII can be anything from full name, phone number, full date of birth, full address, or credit card information.

Once data is made public, it can not be erased or changed, and it is openly accessible to anyone. Therefore, decentralized systems alone are not ideal for storing private information, due to inevitable and permanent loss of privacy. 

They are part of the solution, though, and we will discuss in the following sections.

Is there a solution to this dilemma, then?

At the moment, SelfKey is actively working on and is committed to delivering an ideal solution to increase the adoption of SSID, using cutting-edge technology. 

In the next segments we will thoroughly discuss ESelfKey’s proposed solution, which pertains to:

• The Trust Triangle
• The Three Pillars of self sovereign identity
• Zero Knowledge Proofs

The Trust Triangle

Presently, we are accustomed to the traditional “peer-to-peer” interactions between identity owners and verifiers. To better facilitate the goals of SSI, a three-party system is proposed. In this triangle, two individuals that want to interact securely can rely on a third party to issue and to confirm the authenticity of their credentials. 

For example:

• We have individual A and individual B, two entities who are about to make an exchange. B has obtained their verifiable credentials (personal data that can be checked for validity) from C, a third, neutral party. C is legally permitted to vouch for B’s authenticity. 
• B wants to make a purchase with A, but the services provided by A are age-restricted. Therefore, A must check with C if B legally qualifies to access that kind of service. 
• In this case, there is only one specific inquiry that must be clarified: whether B is a legal adult. That is the only information that C will validate with A.
• A does not have access to extra information that would otherwise be physically printed on an ID or a passport. This information can be name, full address, full date of birth, social security number, photos, etc. Basically, any identifier that B does not want to share with A or to divulge to the public.
• This also eliminates the risk of A, if potentially ill-intended, retaining private information from B. There is no visible data for A to read and memorize. There is only C’s confirmation that B qualifies (or not) to purchase a service from A, without giving out specific details.

This applies to any kind of identifier which is needed to validate interactions between persons or companies. The risk of personal data being visible to individuals outside of the trust triangle is eliminated this way. And even within the trust triangle, only the minimum, relevant information will be shown or confirmed.

Agents of The Trust Triangle

The issuer is the entity that releases verifiable credentials after verifying the claims given by the holder. 

• It is typically an institution, an organization or an individual who possesses the legal authority to verify and to vouch for the holder’s authenticity. 
• Examples of issuers are governmental institutions; universities, departments, companies, agencies, authorities, training institutions, etc. 
• The issuer is a neutral party whose role is only to validate a claim in a holder-verifier transaction.

The holder (data owner) is the individual, a person, a company or an organization who owns unique, personal data.

• The holder earns verifiable credentials after providing proof of authenticity to the issuer. 
• The data owner will use those verifiable credentials to prove authenticity before benefiting from various services, making purchases or transactions.

The verifier (relying party) is the entity which verifies a holder’s verifiable credentials.

• The relying party will need to verify only a specific piece of information. Only the bare minimum which is relevant to provide a service to the holder.
• The verifier checks if the holder’s data is issued by a competent and legally authorized issuer.
• The verifier makes sure that the holder’s data has not been tampered with, forged, expired or revoked. 

Trust in the digital world

What makes this triangle work is that the three parties are willing to trust one another. The element of trust is important, especially in a time where information forgery and theft happen quite frequently. But within a trust triangle, the user (or holder), has complete control over the management and visibility of their data.

As stated above, digital identities are the counterparts of physical identities that are verified through paper documents. The way trust works digitally is similar to the real, tangible world. However, the consequences of having personal information exposed to the public digitally are much greater. 

Having to trust a centralized database is more or less forced upon individuals. Otherwise they couldn’t benefit from services required to perform daily transactions, either for personal or professional gain. Within a trust triangle, SSID can facilitate these daily transactions without holders having to concede to “blind trust” and risking the safety of their personal data. 

The Three Pillars of Self Sovereign Identity

Within the trust-triangle framework, there are three main components, or “pillars”, that enable the realization of the ideal solution SSID is aiming to achieve:

• Blockchains
• Decentralized Identifiers
• Verifiable Credentials

Blockchains 

A blockchain is a ledger which is shared across thousands of computers around the world. These computers act like nodes within a network, storing and verifying information in a way that makes it nearly impossible to modify or cheat the system.

Within a blockchain, data is saved like a compilation of records, linked to one another. Each user has a copy of this collection, which makes it particularly difficult for hackers to unlawfully modify the information stored within. 

To enhance security, data is protected using complex cryptography which, at the moment, cannot be deciphered by malignant parties. The blockchain will provide the security layer necessary for users and relying parties to interact within the SSID framework. 

Decentralized Identifiers 

DIDs, for short, are the digital counterparts of physical documents, IDs, passports or licenses used to verify one’s identity.

What qualifies as an identifier is any kind of information that proves an individual’s identity and individuality. Traditionally, identifiers are issued and stored by centralized systems, such as governmental institutions and organizations.

Decentralized identifiers no longer depend on a central system to manage, issue, and store valuable, private information. They ensure that individuals are able to generate their own identifiers with the help of systems that they trust. Individuals can then use cryptographic proof, such as digital signatures, to authenticate their new identifiers as their own.

Decentralized identifiers are unique. They cannot be forged or stolen, because identity itself is unique and pertaining to only one individual. For example, a digital wallet address can be used as a decentralized identifier.

Verifiable Credentials 

Verifiable credentials are digital versions of physical, paper documents used by persons, businesses, and organizations to identify themselves. Individuals can also use them to prove that they are qualified to access a service or perform a transaction. 

Verifiable credentials are, but not limited to: digital birth certificates, digital education certificates, digital licenses, digital employee identification cards.

Verifiable credentials are issued in a tamper-evident manner that is respectful of the individual’s privacy. Bad players cannot make any unauthorized attempt to modify or forge digital documents without leaving evidence behind. This is something that a relying party will verify at each check.

In the physical world, a tamper-proof document would be sealed within multiple layers that are locked in a specific manner. If anyone attempts to open them, they cannot rearrange the layers in the original way. There is visible evidence that someone has unsealed and tampered with the document.

Using such a tamper-proof document, holders can present them to issuers and be verified immediately. This makes onboarding even more convenient than what centralized services offer nowadays.

But how do individuals make use of these credentials? We believe that the answer to that question lies within Zero Knowledge flows detailed below.

Zero Knowledge

In the current context, the concept of zero knowledge simply means that a relying party (verifier) does not need any additional information, other than the necessary minimum, to confirm whether a data owner (holder) qualifies for the service they provide or not. 

Using the zero-knowledge proof method within a trust triangle, participants will benefit from secure interactions. This is because their full personal information does not need to be revealed in the majority of interactions. 

Let’s revisit our previous example but with ZK in mind:

• Holder A wishes to access Verifier B’s services, which are age-restricted.
• B needs to verify with Issuer C whether A qualifies for said services. 
• C will confirm whether A is of age or not, without revealing the full date of birth, or specific age. Confirmation is expressed in the form of a ZK proof.
• B will not have access to any kind of additional information, like location, actual date of birth, full name, full address, gender, etc. Likewise, B will not be retaining any data, because there will be no information for B to memorize or share outside of the interaction with A.

Conclusions

The quick progress of technology is both thrilling and anxiety-inducing. It can be challenging to adapt to these fast-paced changes. However, there will always be ways to combat the threat of being controlled by an ill-intended higher power. 

Self Sovereign Identity is keeping pace with this constant technological uprising, making sure to protect its users. It aims to maintain the ideal that there’s a choice that doesn’t trap individuals in exhausting, exploitative loops. 

Its goal is to continuously certify its users to reach their full professional and personal potential. To restore each individual’s ability to be the sole controller of their PII in their digital lives. 

ESelfKey is restlessly working towards achieving ways for users to be able to safely engage with partners in an environment that is secure and neutral. At the moment, SSID is an ideal, a work in progress. ESelfKey has the potential to become the bridge that will take its users towards a much safer and empowering future. 

Stay up to date with ESelfKey on Discord, Telegram, and Subscribe to the blog to receive new information!

The system was first proposed in 2014 and was meant to roll out this year, but it will likely be another couple of years before it is fully operational. In this article, we outline what exactly China’s Social Credit System is, how it works, the criticisms it has faced, and the implications it has on big data and online identity. Let’s dive in.

What is China’s Social Credit System?

China’s Social Credit System is similar to how a regular credit score functions. Now a normal credit score only deals with your current financial state and financial history. A typical credit score is decided by five different factors: payment history, utilization, length of credit history, recent activity, and overall capacity. However, China’s social credit score expands the typical credit score system into all ways of life.

According to the Chinese government, the system is designed to monitor and engineer better behavior on an individual level and a business level. The system awards good behavior, which leads to a higher score, and punishes bad behavior, which leads to a lower score. China already has the bones of this system in place (some cities and provinces have created their own version of SCS to curb what is deemed to be negative behavior) but the SCS takes this activity to a whole new level. 

How the SCS works

The SCS has a few different functions. There is one system for citizens, one for businesses and other organizations, and one for government officials. While the full system has not been rolled out yet, here’s what we know so far from pilot systems and reports. Do keep in mind that there is no unified Social Credit System yet; different regions are currently using different methods. 

For citizens, everyone starts with the same score (the city of Rongcheng gives citizens 1000 points to start). Citizens are then closely monitored in all areas of life and are rated on how they behave. Users can increase their points by doing things such as making donations, praising the Chinese government online, and helping the less fortunate. Having more points means that users are more likely to receive a promotion at work, get priority status for their children’s school admissions, tax breaks, and better access to loans and other financial services. Doesn’t sound too bad, right?

However, having a lower score can lead to disastrous consequences, and losing points is easy. Users can lose points by not visiting their elderly parents, traffic violations, cheating in online games, failing to sincerely apologize for crimes committed, and spreading rumors on the internet. Having a lower score can mean that users are not able to travel by plane or train, aren’t eligible for certain jobs, can be subject to public shaming, and can be denied full access to public services.

For businesses, the SCS focuses more on ensuring that the laws are followed, taxes are paid on time, and that product and service quality are adequate. According to the Chinese government, the goal is to create a fair, transparent, and predictable business environment. However, the corporate side of SCS poses some difficult problems. 

For instance, businesses need to take responsibility for their business partners. Even if a company meets all of the legal requirements, they can still be penalized if another company they work with is on a blacklist. Because of this, companies with a lower score will have an incredibly difficult time forming partnerships with reputable businesses. 

Companies with a lower score on the SCS face more frequent and intense auditing, the possibility of public shaming, and may even be excluded from public procurement opportunities. Businesses can land on a blacklist from either having a low score, or for a particular type of violation.

The third part of the SCS, for government officials, focuses on how well government orders are carried out. Essentially, the Chinese government wants to ensure that officials are politically loyal, performing well, and corruption-free.

It is important to note that all three branches within the SCS function differently. Individuals are scored differently from businesses, who are scored differently from government officials. So far, no regional government has enforced all three aspects of the SCS.

Criticisms of the SCS

Why so many are scared of the SCS is because  some of the “crimes” are incredibly ambiguous (how do you know if someone’s apology is insincere?), and the punishments are extreme and take away basic human rights from Chinese citizens. For example, in 2016 a Chinese lawyer was not allowed to buy a plane ticket because an apology he had issued was deemed to be insincere. Judging how sincere someone’s apology is is incredibly subjective, and not something that should prevent a person from having basic rights. 

That being said, Chinese citizens are already under an incredible amount of government surveillance and there have been no criticisms of the SCS from within the country. Probably because its citizens are too scared to speak up.

There are also doubts that the SCS will ever be rolled out on a national level. The program was supposed to start this year, and while individual cities and provinces have laid some groundwork, the Chinese government has yet to introduce anything nationally. The full roll out of the program could be years away simply due to the vastness of China. However, four provincial level governments already have their own version of the SCS.

The Chinese government faces other problems too, specifically regarding corruption. The whole purpose of the SCS is to share information and be transparent. If people are focused on their own interests over the government’s, that’s a big power struggle waiting to happen. 

How the SCS impacts online identity

One of the biggest implications of the SCS is the sheer amount of data that the Chinese government will have access to. The SCS is perpetual surveillance, and a massive collection of personal information will be available about each citizen. The system effectively strips Chinese citizens of any rights to their online identity.

Unfortunately, this isn’t anything new for China. The internet is already heavily censored in China, and law enforcement in the country has been using facial recognition software and drones to identify citizens who are breaking the law. The control Chinese citizens have over their online identity is negligible right now, but with the SCS, it disappears completely.

It’s a disturbing realization. In the Western world, we spend a fair amount of time and effort trying to keep our online identity from falling into the wrong hands. Although data breaches are a regular occurence, ultimately we can choose what to delete and use tools to help keep our personal information safe. In China, these options don’t exist. Under the SCS, the government watches your every move both online and offline. Online identity is public, and can be used against you if you make a wrong decision in the eyes of the government.

And then there is the issue of how all of this data is protected. The regional versions of the SCS combine both traditional and digital monitoring. Some believe that China’s current technological capabilities have been overestimated. In fact when news network ABC Australia contacted the government agency tasked with creating the SCS for a statement, they were asked to send their request by fax. Which makes you wonder, how protected is all of this personal information online and how vulnerable is it to hackers? We might not get the answers to these questions until the country suffers a massive data breach.

Conclusion - China’s Social Credit System and Online Identity

China’s Social Credit System is frightening in more ways than one. Much of it feels like an episode of Black Mirror, and that presumption isn’t wrong. Not only does the SCS limit personal freedoms on a system that is astoundingly arbitrary, but it prevents Chinese citizens and businesses from regaining a positive status. 

Online identity is something that is already incredibly fragile in China right now. When the SCS comes into effect, any personal control is gone. It is already incredibly difficult for Chinese citizens to speak out against their government today. Citizens can disappear, be placed under house arrest, forced to stay in the country, or have their family threatened for expressing dissent. Once the SCS is in place, dissent becomes nearly impossible.

While the SCS has yet to roll out, and it’s unclear when that will happen, it will fundamentally alter the concept of not only online identity, but also human rights. The implications are frightening, and it’s unclear what, if anything, can be done to prevent it. 

In this article we will cover what federated identity management is, how it works, how it compares to single sign-on, its benefits, disadvantages, and the potential applications.

What is federated identity management?

On a very basic level, federated identity management (FIM) is when multiple enterprises let subscribers use the same identification data to obtain access to the services and/or networks of all the enterprises in the group. It has aspects that are similar to single sign-on (SSO), but it is different and we will dive into that later.

With FIM, a user’s credentials are always stored by a core organization - the identity provider. When a user logs into a service, they don’t have to provide their credentials to the service provider. Instead, the service provider trusts the identity provider to validate the user’s credentials. As a result, the user never actually provides their credentials to anyone but the identity provider.

Additionally, when two or more domains or service providers become federated, all a user has to do is authenticate one. They can then access services and resources without having to perform a separate login process for each organization within the federation.

Identity federation offers both economic advantages and convenience to organizations and users alike. For example, if multiple companies can share a single application, everyone will ultimately save due to a consolidation of resources.

However, FIM involves a lot of trust and open communication between partners that choose to make use of it. Companies that are thinking about creating or joining an identity federation need to ensure that they agree upon all factors. Honest communication is a must.

How does FIM work?

Typically, a user will log into their identity provider. Once they have done that, they will initiate a login to a service provider that offers identity federation. Instead of authenticating directly with the user, the service provider requests the user’s authentication from their identity provider.

The identity provider then authorizes the user to the application or service provider, and the user is then permitted to access the service or app. As you can see, the user only needs to have their data authenticated once. 

How FIM compares to single sign-on

FIM and single sign-on (SSO) have a lot of similarities, but they are different at their core. It’s important to point out that federated identity management gives you SSO, but SSO does not necessarily give you FIM.

Single sign-on allows users to log in to multiple services using the same login credentials. You’ve definitely seen this on the internet, for instance, when you can register or login using your Facebook, Twitter, or Google account.

However, there are two things that FIM does that SSO cannot, and they make a big difference. Firstly, SSO only allows users to access multiple systems within a single organization, while FIM enables users to log into systems across different organizations. For example, you can use your Facebook account to create an Instagram account because Facebook owns both companies. With FIM, you could be part of an identity federation that includes Netflix, Hulu, and Disney+.

Secondly, FIM is far more secure than SSO. For SSO, your credentials are still being provided to any system that you are logging into. Whereas with FIM, your credentials are only given to your identity provider, no one else. 

FIM certainly relies heavily on SSO technologies to authenticate users across different websites and apps, but it has developed these technologies further. So while FIM does offer users SSO, SSO does not provide all of the same benefits that FIM does.

The benefits of FIM

Naturally, FIM offers convenience for both companies and their users, and it has a number of different applications. For example, organizations that are working together on a project can form an identity federation so that all of their users can share and access resources easily. This allows users to access all resources across domains, and also allows administrators to still control the level of access in their own domains.

Additionally, FIM eliminates the need to create new accounts for each service provider, application and domain. This means that users don’t need to remember all of their different usernames and passwords. A Dashlane study from 2015 found that the average person has 90 online accounts; imagine trying to remember all of your login data for 90 accounts. Password managers are increasing in popularity, but FIM eliminates the need for them altogether. 

Security is also increased with FIM as users only need to provide their data once to an identity provider. Far less information is being passed around, making things like data breaches far less effective. This not only makes user data safer, but also means that companies are not as vulnerable.

FIM also saves companies money. By consolidating their resources, each company is no longer responsible for individual login pages, authentication, data storage, access, et cetera. Things become far simpler for both organizations offering FIM and their users. 

The disadvantages of FIM

While FIM is generally seen as an overwhelmingly good thing, it does have some disadvantages. The first is that setting up an FIM system can be expensive initially. Small businesses and start-ups may not be able to offer FIM because doing so means they will have to modify their existing systems. 

Another challenge is that participating members of an identity federation will need to create policies and security protocols. Each member will have to adhere to these rules, which may cause problems when different companies have different rules and requirements. As we witness FIM becoming more mainstream, we may potentially see different federations competing against each other.

Since an organization can be a member of different federations, they need to follow what could be multiple sets of rules. Following these different policies and procedures may require more time and effort than many companies are aware of. 

We already mentioned that trust is really important to identity federations, and that can be a disadvantage. For example, given Facebook’s history of not caring about user data privacy, they may find that no one wants to form a federation with them. In fact, a fair amount of most major companies have experienced data breaches, which may make it hard to find someone with adequate safety procedures in place to partner with.

The potential applications of FIM

With identity management becoming an increasingly popular topic, it will be interesting to see if FIM becomes mainstream. From a user perspective, it could be a major player when it comes to protecting personal data.

When we consider how FIM could be used with decentralized identity (DID), things become even more interesting. DID means you only hand over your data to a trusted third party that handles all requests for access and identity. If DID and FIM combine, data becomes even more secure. DID keeps your identifying information safe, while FIM keeps all of your account information protected. Using both together could revolutionize data privacy for the better.

FIM can also be used for companies that are collaborating on projects together or companies that offer business to business (B2B) services. Instead of trying to share data back and forth constantly, all that is needed is an identity federation to allow access to those who need it.

Microsoft is one of the first companies to start using FIM, so it makes sense that they are also proactively working on DID as well. The US government has also shown interest, and is working on FIM research through the National Institute of Standards and Technology.

Conclusion - A safer future for all

Federated identity management offers benefits to both the general population, users, and the organizations that employ it. Things become more streamlined and safer for everyone who makes use of FIM. It will be interesting to see if major companies follow Microsoft’s lead and begin integrating it into their own systems. 

While FIM does have some disadvantages, in particular when it comes to cost and time, we think the benefits outweigh them. That being said, it would be nice to see FIM become more accessible to smaller businesses as well as major corporations. We can only hope that it becomes less time and money intensive as it becomes more mainstream. 

Data privacy and protection are a big part of technology’s future, and we think FIM has a major role to play. With 73% of people having increasing concerns over data privacy, it is vital that companies adapt to ensure both consumer protection, and their own data safety. As time goes on, hackers are only going to get better and better at what they do, and organizations of all shapes and sizes need to do their due diligence when it comes to data protection. FIM might not be the complete answer, but it is part of the solution. 

What is identity theft?

The first step in preventing identity theft is understanding what that means and being able to recognize it. Identity theft (also known as identity fraud by law enforcement) is defined as all crimes against individuals where personal and/or financial information is obtained illegally by using fraud or deception. The most common motivation for identity theft is financial gain.

Once someone steals your identity, they can do a number of things:

• Withdraw money from your bank account
• Apply for loans or credit cards under your name
• Use your health insurance to obtain medical care
• Steal your tax refund by using your Social Security number (SSN)
• Sell your information to other criminals
• Impersonate you online (also called catfishing)
• Commit criminal activities under your identity (ex. terrorist activities, murder, etc)

Identity theft is illegal in most of the world, usually punishable by jail time and/or fines. If identity theft is used to conduct criminal activity, the punishment is usually heavier. The majority of identity theft affects consumers, with the most common being credit card fraud according to the Federal Trade Commission (FTC).

Signs that your identity has been stolen

Once someone has stolen your identity, the signs are usually easy to spot. Most of us, at some point, have received a call from our bank asking about suspicious transactions, but there are other signs to look for.

• You stop receiving household bills. This can be an indicator that someone has taken your information and used it to change your billing address. If this happens, it’s best to call your utility providers and put a password on your account for any future changes.

• You are rejected for a loan or line of credit. If you have a good credit history and are suddenly rejected, this could be a sign that your identity has been compromised. Additionally, if you are approved but with higher interest rates, this can be another sign of identity theft.

• You receive bills for medical services you did not use. While identity theft for medical services is less common, it does occur. If it does happen to you, you should get in touch with the hospital that billed you for the services. Also keep an eye out for being rejected by a health insurance provider for a condition you don’t have, or your healthcare provider rejecting your claim because you have already reached your benefits limit.

• You are billed for purchases you didn’t buy. This is probably the most common form of identity theft. Most banks will give you a call if they see suspicious transactions, but you can be proactive by regularly checking your own accounts.

• Your tax return is denied. If you receive a rejection letter from the IRS (or your country’s equivalent) after filing your tax return, this could mean that someone else has filed a return under your name.

• “Test charges” show up on your credit card statements. Some criminals will make small charges, usually under $5, to make sure the card is still active. If these transactions go through, then the thief knows that they can make larger transactions.

• You receive calls from debt collectors for debt that doesn’t belong to you. This is a sure sign that someone has stolen your identity.

• You receive a notification that a company you work for or have an account with has been hacked. Usually, the company in question will let you know what steps you will need to take, or if you simply need to update your password. Either way, it’s a good idea to change your passwords anyhow and monitor your credit card transactions if necessary.
• You get a court summons in the mail. This is a result of criminal activity, and is unfortunately quite hard to disprove. If you think you may be a victim of this type of identity theft, you should contact law enforcement immediately.

If you notice any of these signs, it is important to take action immediately. There are also a number of steps you can take to prevent your identity from being stolen in the first place.

Preventing identity theft

An important first step you can take to prevent your identity from being stolen is to actively monitor your financial statements. If possible, check your bank account and credit card statements online at least once a week. If checking your statements online isn’t possible, make sure you are monitoring your monthly statements.

Another step you can take is to freeze your credit. This makes it a lot harder for someone to open a credit card or take out a loan under your name, as the bank won’t be able to run a credit check. It’s also free, and you can temporarily lift it if need be. However, it can be a bit of a nuisance as there are three separate credit bureaus you have to contact to do this in the US. You can also enroll in a credit monitoring service, such as PrivacyGuard or Credit Karma, or place a fraud alert on your credit.

Making sure you have strong, diverse passwords on all of your accounts is also key. We all know not to use passwords like “password” or “12345”, but having a strong password goes a lot further than that. Not only should you avoid personal things like pets or family names, but you should even avoid using words that are in the dictionary. If you find remembering different passwords for every account difficult, you can use a service like LastPass to generate unique passwords and safely store them for login.

How blockchain technology can help protect your identity

In recent years blockchain technology has built a reputation for providing an unbreakable and un-hackable payments infrastructure. If you're not aware of how a blockchain works, it typically goes like this:

1. Alice wants to send money to Bob - so she performs a transaction
2. The transaction is timestamped and recorded on a digital ledger
3. Once a certain number of transactions have been performed, they are collected in a "block" and cryptographically linked to the previous block of transactions - called a confirmation.

In order to alter her transaction, Alice would need to break the cryptographic hash of each of the blocks that have been added since. Given the complexity of the hashing algorithm and the resource-intensive nature of hacking this kind of infrastructure, this rarely makes economic sense. In short blockchain technology is set up in such a way as to make hacking it both technically difficult and uneconomical.

Given these impressive features, the question becomes: how can we utilize the secure and distributed nature of the blockchain to protect individuals from identity theft.

Well, since 2017, the ESelfKey Foundation has been building an end-to-end identity management solution utilizing the Ethereum blockchain. This ecosystem will allow individuals and corporations to authenticate themselves online while minimizing the amount of personal information that needs to be shared.

As a simplified example, imagine going to the liquor store and having to show your driver's license to prove that you are of legal drinking age. The liquor store is legally compelled to ensure that you are of legal drinking age, but typical forms of ID contain much more information than is necessary at this junction. A US driver's licence for example contains:

• The full legal name
• Date of birth
• Photo
• Current residence
• Height
• Weight
• Gender
• Eye color
• Hair color
• Signature
• Document number

You can be sure that, in an online environment, all this information is stored and will be leaked in the case of a data breach.

But now imagine the same situation, but instead of an ID you show a notarized certificate simply showing a facial imagine and the sentence: "We, NAME OF NOTARY, hereby confirm that John Doe is of legal drinking age."

In this second scenario, you can see a simplified example of how the ESelfKey ecosystem will use certifiers in order provide evidence but not information. In the case of a breach or a hack, no valuable information would be shared. All a hacker might know is that there is a man called John Doe and he's over the age of 21.

Then you combine this approach with the security and transparency of the blockchain, alongside decentralized identifiers, and you start having a strong identity management system that improves on the current system in many important ways.

Conclusion - How to protect yourself from identity theft

Unfortunately, identity theft is a problem that is not likely to disappear anytime soon and often, we only realize that our identity has been compromised once it is too late. There needs to be a shift in public thinking to be far more proactive in preventing identity theft. Stronger passwords, credit monitoring, and fraud alerts are all good actions to take, but they don’t ultimately solve some of the bigger problems.

It’s become a worryingly frequent occurrence for companies to be hacked, and there are plenty of opportunities for malicious actors to get a hold of your data. Most of us are in the bad habit of not reading the terms and conditions, and privacy policy of every website we sign-up to. We are often giving away a lot of our personal information and may not even realize it.

The time has come for us to take back control of our identity instead of waiting for companies, organizations, and government bodies to lose it. Self-sovereign identity is a very real possibility in the future, but the general population has to make the shift. More awareness needs to be put in place, and we need better solutions that actively prevent identity theft. Your identity is the one thing that should belong exclusively to you, let’s put the power back in your hands and let you decide who gets access to what information.

Download the ESelfKey Identity Wallet and take the first step towards protecting yourself from identity theft.

At the same time, we have less and less privacy. Our data is mined, bought and sold to advertisers on platforms such as Facebook on a daily basis. But just as technology has turned our data into a commodity - a new, privacy centric model is emerging.

Decentralized Identifiers (DIDs) represent an exciting new breakthrough in the field of identity management. They can be thought of as a vital component in a new layer of decentralized identity, which employs cryptography and public key infrastructure to provide a much better way of using the internet.

DIDs are exciting because they represent a tool that can provide us with the power to control our digital identity without the need for a central authority.

To clearly understand this point, let’s take a quick look at how identity management works today and the ways in which the current system is broken. After developing a base understanding of the core concepts surrounding DIDs, we can discuss in more detail exactly how DIDs can be used to solve many of the most pertinent issues surrounding identity management today.

What is Identity Management?

Identity management is rarely taught in a formal setting. Instead, we develop an identity over the course of our lives and begin managing that identity through formal documentation. Life experience teaches us when to carry our passport for example, and we quickly learn about the hassle of replacing lost or stolen identification documents.

As a result, we store our physical IDs in a safe place and make sure to renew them on time - while of course paying the required fees to the centralized issuing authorities. Up until about 25 years ago, this approach to identity management was completely sufficient.  Business transactions were primarily done in person, so it was just a matter of passing your documents over the counter in most cases. Now in 2019, that simply isn’t the reality anymore and the old system is no longer fit for the purpose.

With the advent of the Internet, we’ve had to start thinking about how we manage our digital identity. This concept encompasses every piece of personal data about us available online. The internet has become such an integral part of our lives that the large majority of us now has a rich and detailed online profile.

This has been caused by increasing international regulation which forces companies of all sizes to identify their customers - often requiring copies of IDs or Passports - before doing business.

But there’s a problem: these documents are physical and not designed to be shared electronically - and the attributed and identity claims of the documents cannot be shared individually (in order to prove your nationality, you must send a passport scan (with details such as date of birth and passport number) instead of *just* proof of your nationality.

This is kryptonite for thoughtful and secure identity management.

Let’s look at the failure of current identity management in more detail.

How is modern identity management failing?

1. Businesses lack the resources to safeguard our information

In the fight against money laundering and terrorist financing, regulators force businesses to store highly personal user information. Naturally, most businesses do not have the resources to adequately safeguard our information.

Furthermore, this imposes huge costs on businesses and enormous pain on consumers, but the bad guys end up winning!

For hackers, the prospect of vast amounts of personal data stored in a centralized infrastructure is an attractive proposition. Centralized databases are the default architecture for web platforms - but when breached, represent an enormous prize.

After a breach, the data is then sold off to the highest bidder. In January 2019, renowned security expert Troy Hunt revealed that a “record-breaking collection” comprising 773 million personal records was being sold off on a popular hacker forum.

This example helps to illustrate that - in the internet age - our identity can be stolen without the need for malicious actors to enter our homes or steal the physical copies of our documents. Instead, we risk identity theft whenever we open a new online account.

Here are the ten biggest data breaches of 2018, which help to illustrate the danger:

• Aadhar – 1.1 billion
• Marriott Starwood Hotels – 500 million
• Exactis – 340 million
• MyFitnessPal – 150 million
• Quora – 100 million
• MyHeritage – 92 million
• Cambridge Analytica – 87 million
• Google+ – 52.5 million
• Chegg – 40 million
• Facebook – 29 million

According to Experian, 31% of all data breach victims later experience identity theft. That’s a staggering amount and it testifies to the fact that modern identity management is indeed broken. If the system worked, we could expect to never suffer identity theft. Instead, 60 million Americans have suffered identity theft as of 2018.

2. Current implementations of Identity Management systems rely on a centralized infrastructure

Depending on where you live and where you want to travel, even your infant may need to possess a valid passport. As we grow older, we typically receive a driver’s license, social security number, and insurance cards as well. When we apply to rent our first flat or open our first bank account, we begin to realise that these identification documents play a vital role in our adult lives.

Indeed, they represent an intrinsic part of our personal identity, a concept treated as a basic human right in international law. Therefore, to participate in a functioning society we are required to apply, pay for, receive, maintain and carry with us, centrally issued documents verifying our personal information. Many countries have even introduced laws that require citizens to identify themselves on demand, de facto requiring the possession of identification documents at all times.

Worryingly, this gives governments a huge amount of power over us as individuals. If your government rescinds your passport or is too inefficient to supply a new one, you are excluded from many vital services. Despite this obvious shortcoming, we’ve had to accept this as a necessary evil.

Until 2008, there simply wasn’t a good way of achieving consensus and recording an accurate history in an immutable way without relying on a central authority. However, with the introduction of blockchain technology that premise can be dismissed.

Blockchain is already causing a paradigm shift and many platforms - like SelfKey - are using its power to fundamentally change the way we manage our identity.

3. It requires the oversharing of personal information

Have you ever noticed how identity verification always requires you to share more data than is necessary? In its simplest form, you can imagine buying alcohol and being asked to show your ID.

In this case the relevant information is:

• Photo - to verify that the document correlates with the person making the purchase
• Date of birth - to verify that the customer is of legal drinking age

These two data points should be completely sufficient in order to purchase alcohol. The reality,  however, is that we need to hand over our ID, Passport or Driver’s License, which contains much more information than that.

Below, you can see a typical US Driver’s License which details:

1. The full legal name
2. Date of birth
3. Photo
4. Current residence
5. Height
6. Weight
7. Gender
8. Eye color
9. Hair color
10. Signature
11. Document number

Now you might be thinking: “What are the chances that the person selling alcohol over the counter is recording all this information?”

In an online environment the likelihood is 100%. Businesses are required to record the information you provide during the identification procedure for KYC and AML purposes.

This is where the big problem arises.

When a hacker breaches a centralized database  then he often gains access to all the customer data - including your personal data. Given the extensive information available on your driver’s license, it now becomes much easier to steal your identity. This is one of the reasons why identity theft is one of the fastest growing crimes in the world.

In order to counter this, we need an overhaul of modern identity management systems.

What are Decentralized Identifiers?

At a high level, DIDs utilize the innovations of blockchain technology and allow you to create and manage a resolvable identifier. That identifier can then help prove your identity online.

Additionally, you can think of a DID as always having these four characteristics. It is:

1. Persistent
2. Globally resolvable
3. Cryptographically verifiable
4. Decentralized

Importantly, you create your DID and retain full ownership and control of it. This means that nobody can access it without your permission, and it cannot be rescinded by a central authority. This is just one important aspect, but many more exist. DIDs also aim to provide:

• Decentralization - DIDs should eliminate the need for centralized authorities or single points of failure in identity management. Instead, the individual should have full control over his identifier which can be powered by an open and decentralized network of nodes.
• Self-Sovereignty - DIDs should give individuals and organizations the power to own and control their digital identifiers. The reliance on central authorities should be broken.
• Privacy & Security - DIDs should improve the level of privacy and security that users enjoy online. They should assist with the ability to selectively disclose data that is associated with your DID and help users manage private keys as well as authentication mechanisms.
• Interoperability - DIDs should work across blockchains, software libraries and mainstream protocols.
• Simplicity - DIDs can assist in providing a user friendly experience by managing authentication mechanisms including key verification that can eliminate the need for a password.

With these goals in mind, let’s take a closer look at how DIDs work.

How does a DID work?

From a technical perspective, a DID is a string which contains several attributes that can uniquely define a person, organization or object. As you would expect, it uses cryptography and key pairs to secure information and handle permissions.

From a user perspective, the use of a DID to access service providers would involve three parties:

1. An Identity Owner - the individual aiming to prove his or her identity
2. A Claims Issuer - a third party authorized to verify credentials (like a notary or justice of the peace)
3. The Relying Party - the service provider accepting the issued claim

The identification process might look like this:

1. User creates DID
2. A claim issuer (could be a Certifier) issues a claim to that DID
   1. A claim object is created and shared privately to the Identity Owner
   2. A Hash of the claim object is stored on-chain
3. The identity owner shares the DID with the Relying Party
4. The relying party resolves the DID and retrieves the necessary claims
   1. This could require a request of the explicit claim object, or a check against the on-chain hash might suffice, depending on the case.
5. The user is accepted and can access the service provided by the relying party

As you can see the flow of this identity transaction broadly follows that of existing identity systems.

The key difference is that DIDs are not issued and controlled by centralized authorities but instead remain under the control of the individual.

What does a DID look like?

In the wild, a DID looks like this:

Let’s break it into three important parts:

• Scheme - The scheme specifies how the DID is constructed. The "grammar" that corresponds to a DID according to some specific method (different DID platforms might define different methods with their own scheme and specs). Importantly, a DID is a form of URI or Universal Resource Identifier (a URL is another type of URI, for example). So, the scheme is part of the method specs and defines how a DID looks. In our case, we append our method name ("key"), followed by a colon and a 32 byte hexadecimal value.So, for example, a ESelfKey DID looks like this:

did:selfkey:0x69fbd1076c1c57471c69d79cd13b0b85396b01a890c7435ddac42cf2a77fca9a

• Method - A DID method refers to the particular platform that provides the DID functionality. Our method, besides specifying the particular scheme in the previous example, also defines the basic operations for DIDs (creation, removal, update and deletion). All of these among other details are defined in a Method specs document. All DID methods should follow the generic DID specs as defined by the W3C Credentials Community Group.
• DID Method Specification - is a document, encompassing all the aspects of a DID method (including its scheme).

Why should you care about Decentralized Identifiers?

DIDs introduce a number of important innovations to modern identity management. But why should you care?

Here’s why.

1. DIDs allow you to own and control your digital identity

In the 15th century, King Henry V issued the first official passport. In the 600 years that followed, governments around the world took control over large parts of our personal identity. We take it for granted that bureaucrats issue, renew and revoke vital identification documents, without which we cannot participate in modern society.

In the digital sphere our identity is managed by the plethora of platforms which house our online accounts. Whenever you sign up for a new service, that company now de facto owns a significant part of your digital identity. This is amplified when you use Facebook or Gmail to access online services. In these cases you have no control or insight into how much data is shared and what is done with it. In order to participate online, you have to give up control over your personal data.

Decentralized Identifiers have the power to change that. For the first time, we can manage our own credentials and create a permanent cryptographically verifiable record of our own identity.

Within the framework of identity management this concept is called self-sovereign identity (SSID). In SSID systems, you control your digital identity, composed of DID’s and verified credentials. This allows you to create, update, or destroy the DID at any point!

There is no need to stand in line in some government building. You do not need to pay a fee to have it renewed. It cannot be taken away from you. It’s fully under your control, at all times.

You truly own your identity. You control your destiny, and as you’ll see in the next point - you are much safer as a result.

2. DIDs enable decentralized identity management

DIDs utilize blockchain technology to provide a decentralized identity management layer. The Ethereum blockchain for example, is a global and immutable database on which anyone can store information. Importantly Ethereum allows for turing complete smart contracts that (specific to identity) enable you to create, update, or destroy your identity, as well as manage keys.

Decentralized identity systems harness these capabilities and leverage them to secure and decentralize our digital identity. As a result, we remove the power of centralized authorities and corporations to manage our identity. Instead, we regain control over our data and are in full control over who has our data, when and from where they access it, and for what purpose. A far cry from the ID management of the past.

3. DIDs enable lightning fast registration

Even if you’re not concerned with privacy and security, DIDs pose an exciting development, because they enable lightning fast registrations.

The average adult has over 90 online accounts so we all know the pain of registering for a service. Tedious identification procedures, customer support tickets and forgotten passwords are just a few of the hallmarks of our current ID systems.

When signing up for a financial service it’s now common to complete a rigorous identification procedure. Depending on where you are located this may include your:

1. Email address
2. Personal details
3. Address
4. Passport/ID scan
5. Proof of address (Utility bills for example)
6. Live video identification
7. Sanctions screening

Not only is this invasive of our privacy but it’s also time-intensive. In a world where we can communicate with people all over the world in seconds, why does it take so long do register for an online service?

DIDs offer a solution for this. More specifically, your Decentralized Identifier can contain the information service providers need in order to accept you on to their platform. So instead of a lengthy registration period, you could access service providers with the click of a button.

4. DIDs open the door for Verifiable Claims

Verifiable Claims are another fascinating breakthrough in the world of identity management. In the example provided above, we discussed how invasive a regular identification is - for a purchase as mundane as alcohol.

It should be possible to prove certain aspects about ourselves without having to share precise information. The significant oversharing of data is something that Verifiable Claims - with the help of DIDs - allow us to eradicate.

In order for this to work we need three parties:

1. The identity owner - the person buying the alcohol (you)
2. The claims issuer - a third party authorized to verify credentials (like a notary or justice of the peace)
3. The relying party - the liquor store (the service provider accepting the issued claim)

Together these parties have the power to make informed decisions while respecting the privacy of the individual. As an example, you could imagine a notarized document that contains a picture of the individual and verifies a relevant claim: “FULL NAME is above the age of 21”.

If the liquor store accepts the legitimacy of the claims issuer, then it now has all the required information to sell alcohol to the individual. In a nutshell, that’s how Verified Claims work.

Decentralized Identifiers allow us to easily store, manage and submit verified claims. Even more impressively, the interoperability of DIDs would allow individuals and organizations to prove their identity across (almost) all blockchains, software providers and web apps.

Conclusion - What does the future hold?

Decentralized Identifiers clearly have a huge amount of potential and are already changing the way we think about our digital identity.

At ESelfKey we are leveraging new breakthroughs to improve the privacy and security of our community. The ESelfKey Wallet takes a first important step towards self-sovereign identity, allowing you to manage your identity documents securely on your local device.

With the launch of the Incorporations category of the ESelfKey Marketplace, we’ve taken another significant step by developing a platform that provides easy access to an array of service providers and a vastly improved onboarding experience by using your ESelfKey ID to directly submit data and documents without requiring a 3rd party platform.

The ESelfKey Foundation has always been open source and we carry that philosophy with us. As a result, we will be publishing our own public DID method and specifications and will continue to contribute to the many positive developments in the digital identity ecosystem.

Would you like to learn more? Join us on Join us on Telegram and download the free ESelfKey Wallet. Thanks for reading.

Despite the subject matter however, identity management is an increasingly important subject. 2017 saw a record number of data breaches and cases of identity theft, meaning most of us have experienced some failure in our identity management.

To illustrate how big the problem has become, let’s looks at some of the eye-watering statistics around identity management.

Statistics about account security

1. An 8-character password with upper and lower case letters, as well as numbers and symbols has 6,095,689,385,410,816 possible combinations — DigiCert
2. 35% of users still use weak passwords (meaning they contain less than 10 digits and a word) — Preempt
3. Only 10% of Google accounts use 2-Factor Authentication — Usenix Enigma
4. Only 12% of Americans use password managers — Pew Research Center
5. The most commonly used password is: 123456 — DigiCert
6. 73% of users have the same password for multiple sites — DigiCert
7. 33% of people use the same password every time — DigiCert

Statistics about data breaches

1. There were 1,579 data breaches in 2017 — The Identity Theft Resource Center
2. Last year 179 million records were exposed due to data breaches. In 2018, it’s well above 1 billion — Information is Beautiful
3. Facebook, Google, Amazon and Apple have all experienced data breaches — Sources linked
4. 31% of data breach victims later experience identity theft — Experian
5. 1.6 billion records have been exposed since 2005 — The Identity Theft Resource Center
6. The number of data breaches increased from 1,091 in 2016 to 1,579 in 2017 — The Identity Theft Resource Center

Statistics about identity theft

1. There is a new victim of identity theft every 2 seconds in the United States — Clark
2. 14.2 million credit card numbers and 158 million social security numbers were exposed in 2017 — Experian
3. 13.8% of all consumer complaints came as the result of identity theft — Consumer Sentinel Network Report
4. Credit card fraud was the most common form of identity theft in 2017 — Experian
5. In 2017, consumers reported more than $900 million in total fraud losses — Experian

A failure in identity management often results in identity theft, the impact of which goes far beyond economics.

The emotional impact of identity theft

1. 85% of victims felt worried, angry and frustrated
2. 83% of victims felt violated
3. 69% of victims felt they could no longer trust others and felt unsafe
4. 67% of victims felt a sense of powerlessness or helplessness
5. 59% of victims felt sad or depressed
6. 55% of victims felt betrayed

Source: The Identity Theft Resource Center — The Aftermath: The Non-Economic Impacts of Identity Theft

The physical impact of identity theft

1. 84% of victims reported issues with their sleep habits
2. 77% of victims reported increased stress levels
3. 63% of victims reported problems with their concentration
4. 56% of victims reported persistent aches, pains, headaches and or cramps
5. 54% of victims reported increased fatigue
6. 50% of victims reported that they had lost interest in activities they once enjoyed

Source: The Identity Theft Resource Center — The Aftermath: The Non-Economic Impacts of Identity Theft

With these shocking statistics in mind, it’s easy to see why we need to start taking identity management much more seriously. Data breaches, identity theft and many other failures in identity management are on the rise, and we need to start protecting ourselves. Check out the ESelfKey Identity Wallet to learn more.