Self-Sovereign Identity (SSI) adds trust and authenticity to existing and future use cases while protecting privacy and confidentiality. Furthermore, it removes existing and costly dependencies on central intermediaries that currently provide much of the electronic identity service. SSI allows each entity to hold their own identity in the form of Verifiable Credentials issued by third parties for easy verification as required, based on selective disclosure to third parties. Self-Sovereign Identity is also more robust in that it allows for social proof as well as formal proof, and the failure of a single entity or proof does not compromise the entire system.

Unsurprisingly, companies and governments around the world look toward SSI as the answer to many of today's challenges. The European Union is updating its eIDAS framework, which is shorthand for electronic identification and trust services, to fully support SSI, and Switzerland is currently on its way to launch the Swiss eID as a Verifiable Credential service in 2025. Organizations can already protect themselves against fraud and impersonation by providing proof of their legal identity as a Verifiable Credential from GLEIF, the Global Legal Entity Identifier Foundation.

For online businesses, SSI allows them to remove the friction of ever-annoying sign-ups and registrations, eliminating the risks of data breaches almost entirely. Customers can safely re-identify themselves using their SSI wallets and submit verified email or postal addresses for delivery of goods and services.