Users’ identities have typically been secured with a username and password combination, with all that information being stored on the provider’s — often centralized — systems.
The emergence of Web3 has given people the chance to regain control over their data. Users will now have access to what is called “digital self-sovereign identities” (SSIs), allowing them to verify who they are while still maintaining total control over their data thanks to the advantages of blockchain technology.
This is a huge step toward full data ownership and a huge benefit for users. With DIDs (Decentralized Identifiers), users will have a verified profile that may follow them wherever they go, both in the real and digital worlds, in addition to maintaining their rights to personal information.
A “portable reputation” will allow a person’s background information and credentials to be stored in a single digital ID thanks to Web3 technology. This might include social, financial, medical, or professional data, as well as contacts or our shopping history. Despite the fact that having this much information saved in a single ID may seem scary, if you think about it, most of us already rely on Big Tech to do so; the difference, your information does not currently solely belong to you.
Who manages user data is not a trivial question, as it involves more than simply security and privacy; it also involves money. Digital ad revenue in the U.S. jumped 35% to $189 billion last year, and although this data has genuine worth, it has been controlled by businesses rather than by people.
But there are several advantages in numerous sectors. For example, a significant portion of incorrect diagnoses in the medical industry is caused by experts’ incomplete records. This is because a patient’s medical history is typically dispersed throughout several organizations that don’t necessarily exchange data. The same fundamental concept happens with your academic transcripts, professional qualifications, employment histories, internet activities, and so much more.
Consider what would happen if users submit their own data via an SSI. One benefit is that corporations might be certain that all of the information they receive is correct. Additionally, users would supply the information rather than the company purchasing it from other sources. These companies would see significant overhead savings as a result, which they could subsequently pass along to clients.
With Digital Identities, we will be creating our own unique, readable history.