Blockchain-based self-sovereign identities may hit $133B by 2030

Blockchain technology is revolutionising digital identity management, offering secure, decentralised solutions that allow users to control their personal data.  

Self-sovereign identities (SSI) are at the heart of this transformation, enabling individuals to own and manage their credentials without relying on centralised institutions.  

Sebastian Rodriguez, Chief Product Officer at Privado ID, explains that blockchain provides a transparent and immutable system where users are at the center of their identity management.  

“Blockchain is one of the many components at play in self-sovereign identity solutions. These types of solutions place the user at the center of their data exchange and are consent-driven. This is what really helps to improve the security and privacy of the user—being the real owner of their data,” he stated.

Blockchain’s role in digital identity systems is further enhanced by Zero-Knowledge Proofs, which ensure data privacy by allowing users to verify their credentials without exposing sensitive information.  

This method, combined with smart contracts, enables trustless identity verification, eliminating the need for central authorities.  

Despite the advantages, blockchain-based identity systems face challenges.  

One key issue is accessibility for non-crypto-native users.  

“In general, it’s better to hide the blockchain from the end users if we are targeting mass adoption beyond the crypto community,” Rodriguez emphasised, stressing the need for a seamless user experience.

Privado ID’s “blockchain light” approach focuses on simplifying user interaction and cross-platform interoperability, ensuring privacy and reducing costs for institutions.  

Blockchain’s potential to enhance user privacy and streamline processes, such as Know Your Customer (KYC) verification, is already reshaping industries like finance, healthcare, and online services.  

As digital identity solutions continue to evolve, blockchain is expected to play a critical role.  

“In 10 years we will remember the current state of the Internet as the 'wild' days,” Rodriguez predicts.

The global digital identity market is projected to grow from $42 billion in 2024 to $133 billion by 2030, signaling a significant shift towards more secure, user-centric identity management systems.