The Ecosystem of SSI (cheqd)
What is SSI?
Self-Sovereign Identity (SSI) allows users to self-manage their digital identities without depending on third-party providers to store and centrally manage the data. It gives individuals control over the information they use to prove who they are to websites, services, and applications across the web. SSIs are tamper-proof, secure, and private because they use selective identity disclosure techniques.
The SSI identity system involves at least three participants. These are the issuer, the holder and the verifier.
· The issuer is the certified body or government that has been awarded a level of trust to provide identity information. They issue verifiable credentials (VC).
· The holder is an individual or an organisation/company that the information attests to (i.e. you).
· The verifier is the individual, organisation, company, government, and so forth to whom the holder needs to prove the legitimacy and trustworthiness of the information.
What is cheqd?
cheqd is the trusted data blockchain network with many real-world use cases. We’ll focus on two: cheqd Payment rails for identity systems and decentralised security for verifiable Credentials.
Payment Rails
cheqd is building a standards-compliant, incentivised Self-Sovereign Identity network that will include the issuers (those creating and issuing credentials), holders (the individual themself who the credential pertains), and verifiers (those required to receive and check the credentials) in its payment rails. Present ID systems incentivise only issuers and verifiers without including the identity subject (holder/owner) in the reward system.
Issuers of present ID models such as passports and others are incentivised for their services of giving out verifiable documents. Also, internet identity keepers, such as Facebook and Google, sell users’ data without regard for the owner’s consent.
Decentralised Security For IDs
With regards to blockchain security, cheqd is building an open-source permissionless blockchain network with an associated suite of tools that makes exchanging trusted data easy, inclusive, and secure. cheqd believes that no single company should be in control of such critical Web infrastructure.
How does cheqd enable an SSI ecosystem?
The issuer creates a public signature and signing keys in a form of DID and issues out a verifiable credential(VC) that carries the issuer’s signing key and signature.
Self-Sovereignty identity holders can hold, control and consent to where their data is used. The credential is retained in a digital identity wallet with a user interface that helps to arrange data type.
When a holder wants to verify their identity, the verifier compares the public signature and signing keys on the holder’s credential with the issuer’s signature and signing key, and then verification occurs.
cheqd Incentive Cycle
cheqd aims to offer multiple options, thus offering a choice to the issuers and holders of credentials to adopt models such as:
· Holder-pays-issuer (“As an individual, I’d like a way to pay the issuer of the digital credential”, e.g., paying the government to get a digital passport).
· Verifier-pays-holder (“As a recipient of a credential, I’m happy to pay a small fee to the holder”; e.g., the holder giving access to a digital passport credential).
· Verifier-pays-issuer (“As a recipient of a credential, I’m happy to pay the issuer of the credential a small fee for additional metadata”; e.g., checking the revocation status of a credential).
As CHEQ will be used as collateral for the lines of credit mentioned above, this will have a significant impact on supply & demand. The current supply of $CHEQD in the market is 1.008B with a minimum inflation rate of 2% and a maximum of 4%. This will prevent a high supply of $CHEQD and result in a surge in price when the ecosystem starts growing with the cheqd vision on the flywheel for Self-Sovereign Identity growth.
learn more about cheqd
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