As much as we’d like to think that digital driver’s licenses and library cards are the “next big thing,” they’re not actually that cutting-edge.

In fact, digital identities are nothing new; they’re as old as computers themselves. Simple user IDs and passwords have turned into the backbone of our online existence, powering the systems that influence how we work, what we buy, and how we entertain ourselves. 

Self-sovereign identities, which offer users unprecedented control over their personal information, are just the next iteration of this technology. While this latest innovation promises to redefine how we manage our digital selves, it behooves us to revisit the past. By exploring the rich history of digital identity, we can better appreciate the transformative power of SSI and what it means for our future.

The Birth of Digital Identity

Digital identity can be traced back to the 1940s and 50s when the first computers came out. Because multiple people (often those with high security clearances) were using ENIAC and UNIVAC computers, they needed a way to segment and store their work. 

So, they devised rudimentary user IDs and passwords, ensuring that only authorized individuals could operate them. The need for more sophisticated access control systems arose as computers became more widely used in the 1960s and 1970s.

Usernames and passwords were still the primary form of identity management and authentication. But the process became more centralized with Access Control Lists (ACLs), which defined what each user could do once authenticated. ACLs specified permissions for files, programs, and other resources, detailing which users or user groups could read, write, or execute certain files. Digital identities were starting to represent not only who people were but what they could do.

Expanding the Scope of Digital Identity With the Internet

By the 1980s, more and more people were getting exposed to computers and wanted to use them in the comfort of their homes.

This explosive growth prompted an even greater need for individual digital identities. If a family had five members who wanted to use the computer, each one needed an identity. And if the computer had multiple applications, those applications needed to match those five identities, too.

That problem gave rise to software-based identity management, which allows users to log in to operating systems and applications with unique credentials. This development came just in time: the World Wide Web was about to change the landscape of digital identities forever. 

In the early days of the Internet, email accounts became a standard form of online identity—at home and at work. To secure online communications, developers created Public Key Infrastructure, leveraging a combination of digital certificates and public-private key pairs to keep messages safe. The newly formed Lightweight Directory Access Protocol (LDAP) helped IT teams manage directory services more effectively.

Modern Developments in Identity Management

In the early 2000s, an industry consortium called the Liberty Alliance Project was responsible for much of our foundation of federated identity management, establishing open standards like Security Assertion Markup Language (SAML) that paved the way for:

• Single sign-on (SSO), which lets users authenticate once and gain access to various systems.
• OpenID, which lets users log into multiple websites with a single set of credentials.
• OAuth, which lets third-party applications access a user's resources without sharing passwords.

At the same time, major identity providers like Google and Facebook emerged. Consumers were hungry for mobile apps, and with their teams’ help, OAuth 2.0 was released, providing more flexibility and security for both mobile and web applications.

But — and there’s a big but — concerns over data privacy and control were mounting. In 2016, the European Union enforced stricter data privacy laws with the General Data Protection Regulation (GDPR), impacting digital identity management and emphasizing user consent and control over personal data.

Self-Sovereign Identities: The Latest Iteration

As a result, engineers started pouring more time and effort into privacy-centric standards for passwordless authentication. And they began developing decentralized identity solutions through notable projects like the Sovrin Network and uPort.

Using the blockchain’s cryptographic keys, individuals could:

• Securely add to their digital identity over time.
• Store digital credentials in a distributed, trackable ledger (a digital wallet).
• Prove credentials are really theirs without exposing unnecessary information. 

That brings us to where we are now: self-sovereign identity (SSI), a digital identity that empowers individuals to manage their credentials securely and independently.

The benefits of SSIs are manifold—from increased privacy to enhanced security to greater user autonomy. And they have enormous implications for our society, particularly for the chronically underserved. At Entidad, we’ve already proven the success of our digital wallet, partnering with The United Farm Worker Foundation to provide emergency farmworker relief to hundreds of thousands of farmworkers via the blockchain.

The Future of Digital Identity

SSIs represent the culmination of decades of innovation, offering individuals unprecedented control over their personal information. As we look to the future, staying informed and engaged with these developments will be crucial, especially for leaders in the non-profit space.

Staying on the cutting edge could mean outsized impacts on the people and projects you care about most. Follow along on our LinkedIn page and on our blog as we shape the future of digital identity.

Want to be a part of it? Join our open-source community or get in touch with our team.