Data has always been a sensitive topic since the advent of the internet. Various challenges like misuse and improper data management have led many to search for a solution — and some believe that it could be found in Web3 through Self-Sovereign Identity (SSI).
Various projects have introduced SSI within their protocols. One of the most recent projects to do this is the popular dog-themed token project called Shiba Inu (SHIB). The project’s pseudonymous lead developer Shytoshi Kusama has recently unveiled their plans to integrate SSI into all Shiba Inu projects.
Check out our latest blog post: “Shib SSI: What, Why, & Wen!” Discover the exciting world of Self-Sovereign Identity and how it revolutionizes our ecosystem. Read it here: https://t.co/5HMrcyAl5C
— Shib (@Shibtoken) August 6, 2023
In a statement sent to Cointelegraph, Kusama described SSI as a concept that emphasizes individuals’ control and ownership over their personal data. According to the developer, it lets users create, manage and share their identity information without centralized intermediaries. Kusama explained that:
“Shib SSI relies on decentralized technologies, like Shibarium, to enable secure, private, and verifiable identity interactions, empowering individuals with greater privacy and control over their online identities.”
According to Kusama, Shiba Inu is utilizing this technology as another way to “empower” their decentralized community. The developer said that they are looking toward a future where this tech is integrated into the full Shibarium ecosystem.
How SSI addresses Web2 data challenges
Web2 has always faced various challenges in data management due to its centralized nature. According to BNB Chain’s senior solution architect Arno Bauer, SSI addresses these challenges and improves how data is managed.
By aligning Web3 principles of data ownership and utilizing technologies like zero-knowledge (ZK) and soulbound tokens (SBT), Bauer noted that SSI enables a more secure, private and user-centric internet. “Web2 identity systems, being centralized, are prone to challenges such as potential data leakage and duplicated KYC storage,” he explained.
Bauer also told Cointelegraph in a statement that integrating SSI offers many potential benefits for Web3 projects. This includes compliance with specific regulations without disclosing sensitive Know Your Customer (KYC) information and risk controls. Bauer explained:
“By enhancing identity verification, SSI helps in avoiding scams and mitigating risks like Distributed Denial of Service (DDOS) attacks, thereby increasing the overall security of the platform.”
When it comes to users, Bauer believes that SSI can provide privacy protection and data commercialization. Because users have control over who has access to their data, they can protect their privacy and avoid data misuse. Meanwhile, users also have the potential of monetizing their personal data and “turning it into an asset rather than a liability.”