Top 5 Self-Sovereign Identity Protocols for Decentralized…
By Tobi Opeyemi Amure
AI summary of the source article
Self-sovereign identity protocols enable users to store signed credentials in wallets and share verifier proofs without storing personal data in centralized databases. Five prominent protocols include OpenID4VC, cheqd, Hyperledger Indy, Privado ID, and SpruceID.
Why it matters
Businesses can deploy SSI protocols to reduce onboarding friction while limiting the amount of personal data held in central databases, addressing identity verification that is often repetitive and expensive.
Key facts
- Self-sovereign identity combines decentralized identifiers, W3C-compliant verifiable credentials, cryptographic proofs, and identity wallets without removing KYC or AML responsibilities.
- Cheqd is a Cosmos-based network launched on November 23, 2021, featuring an optional verifier-pays-issuer model for credential status checks.
- OpenID4VC connects credentials to OAuth-based flows, Privado ID uses zero-knowledge proofs, Hyperledger Indy provides ledger infrastructure, and SpruceID offers developer tooling.
Source excerpt · FinanceFeeds
Traditionally, banks, payment apps, exchanges, and lending platforms retain personally identifiable information, such as passports, utility bills, or corporate documents, in separate centralized identity databases for every interaction. With a self-sovereign identity (SSI) protocol, users can store signed credentials in a wallet and share only the proof a verifier requests, such as KYC status. It…