Self-Sovereign Identity and Web3: Empowering users in the metaverse and beyond

published on 30 May 2023

In an era dominated by digital platforms and concerns over data privacy, the concept of Self-Sovereign Identity (SSI) has emerged as a powerful solution. SSI, also known as Decentralized Identity (DID), not only grants individuals control over their personal data but also offers a way to limit the influence of large platforms in our lives. While we often associate DID with identity cards, driver's licenses, and other tangible credentials, its potential extends far beyond these traditional use cases.

This blog post explores the transformative capabilities of Self-Sovereign Identity in the context of Web3, where decentralized identity and cryptocurrency converge to shape a new paradigm of digital empowerment.

SSI / DID for Web3 dApps
SSI / DID for Web3 dApps

The scope of Self-Sovereign Identity: Extending beyond traditional use cases

When contemplating the possibilities of self-sovereign identity, it is crucial to look beyond the confines of traditional identification documents. While the future may envision payment cards based on SSI, the immediate potential lies in verifiable credentials that unlock new opportunities. 

For instance, at Altme, we focus on verifiable credentials in the form of vouchers, coupons, loyalty cards, and membership cards. By leveraging decentralized identity (DID) technology, we enhance traffic, recruit new customers, and foster brand loyalty in web3 applications, including decentralized crypto games, NFT galleries, DeFi platforms, and the upcoming Metaverse. Leveraging SSI to increase platforms traffic makes it easier to accelerate the adoption of decentralized identity.

Verifiable credentials and NFTs: Different facets of digital identity

Verifiable credentials and Non-Fungible Tokens (NFTs) represent distinct but interconnected facets of digital identity in decentralized solutions. NFTs describe what an identity has, while verifiable credentials define what an identity is. In practice, the identifiers and cryptographic keys supported by a self-sovereign identity wallet and a crypto wallet align, with certain DID methods such as did:pkh DIDs mapping to blockchain addresses.

However, a fundamental difference exists between NFTs and verifiable credentials. While NFTs can be bought or sold, verifiable credentials can only be revoked or suspended. Verifiable credentials represent characteristics that can change over time but lack intrinsic market value. These credentials are stored off-chain within users' wallets.

Decentralized Applications (dApps) : Data control and customer information

Decentralized applications offer users unprecedented control over their data while limiting the information available to platforms. The advent of cryptocurrencies, starting with Bitcoin, facilitated crypto exchanges without the need for disclosing customer data. While this decentralized approach enhances privacy, it can also compromise safety in some cases.

Know Your Customer (KYC) processes are sometimes required, but the blockchain should not be used to store the data for privacy reasons, making it impossible to link user information with wallet addresses. KYC data is reconciled with blockchain addresses after the fact, assuming that the wallet belongs to the user undergoing KYC. However, the prevalence of multiple passports associated with the same blockchain address underscores the challenges faced in this domain.

SSI offers a solution by cryptographically associating user data with a crypto wallet address, preventing errors or fraud. Moreover, SSI ensures the protection of users' data by granting them the exclusive right to decide which data is transferred to platforms.

Self-Sovereign Identity (SSI) and traditional economic actors: Connecting Web3 and real-world brands

Verifiable credentials enable data exchange between decentralized platforms and real-world companies and brands, creating a mutually beneficial relationship. For instance, crypto wallets equipped with SSI functionalities, like the Altme wallet, can carry the identity of a game avatar, allowing players to leverage their experiences across multiple games and even in the Metaverse or real-world environments. Game creators can transcend the limitations of NFTs by developing characters as carriers of verifiable credentials, expanding their potential beyond mere artifacts.


Similarly, decentralized identity facilitates marketing collaborations with real-world brands to drive traffic to decentralized platforms. Crypto wallets can carry discount coupons to attract new players or function as loyalty cards to cultivate brand loyalty. 

Consider the scenario of organizing a real-world event where select players can win discounts on game artifacts. The coupon is seamlessly transferred to the players' crypto wallets through a simple scan, and upon wallet synchronization with the game, the coupon is redeemed, enhancing the advantage gained in the real world. This decentralized affiliation program prioritizes user privacy, as users retain control over which data is transferred and to whom.

Furthermore, SSI enables decentralized applications to request additional user information during login. For example, if a wallet holds a verifiable credential like "Over18" or a KYC issued by a partner platform, this credential can be securely transferred to the decentralized application, ensuring secure and authenticated access.

Seamless integration and automation: The contributions of SSI

The integration of self-sovereign identity brings several noteworthy contributions to the Web3 ecosystem. Firstly, the cryptographically associated user data streamlines the onboarding process by automating user identity verification. This association of data with a blockchain address ensures the accuracy and legitimacy of the data used for digital assets exchanges (MiCA/TFR regulation).

Secondly, SSI enables crypto wallets to serve as secure storage mediums for user data that might be challenging to manage in a decentralized environment or data that users wish to keep available for other domains or enhanced security measures.

Lastly, SSI utilizes data presentation standards that enable efficient information sharing and machine processing, empowering applications to leverage user data, off-chain or on-chain, in a seamless and interoperable manner.


The concept of Self-Sovereign Identity represents a revolutionary step in redefining the relationship between individuals, their identities, and the digital world. As decentralized identity finds its place within the Web3 landscape, users gain greater control over their personal data, forging secure connections with real-world entities, and embracing immersive experiences in the Metaverse.

The ongoing efforts of organizations like the Decentralized Identity Foundation (DIF) and World Wide Web Consortium (W3C) have been instrumental in shaping the concepts and technologies behind SSI. Its implementation spans various sectors such as health, education, and e-government, underscoring its significance within the Web3 framework.

By leveraging the power of decentralized identity, SSI paves the way for a future where individuals truly own and manage their digital identities, fostering a more secure, privacy-centric, and user-centric web.

Join us on this transformative journey as we explore the boundless possibilities of Self-Sovereign Identity within the ever-expanding landscape of Web3.

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