Benefits of Self-Sovereign Identity (SSI) Technologies for E-commerce Businesses in 2021
Internet privacy is of great importance for many online users. With a rich flow of information on the internet and easy and fast access to it, the issue of online behavior has become extremely thought-provoking. This shouldn’t be surprising, as data privacy remains a fundamental human right that applies to almost every single aspect of life, and digital activities are no exception.
Online data management, including data storage and data security, is also highly concerning to any company that accepts online payments. The more sensitive online data is, the more tempting it is to cybercriminals, and sensitive data storage may become both a burden for a business and perfect bait for hackers.
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If you want to create a new digital product with the highest level of privacy and security, it is essential to consider the self-sovereign identity (SSI) approach.
In this article, we will provide a basic definition of the SSI idea and consider its advantages in terms of security, cost-efficiency, and sustainability either for an average online user or organisations that use their client’s identity in transactions and any other instance.
What Is SSI?
SSI is a concept of digital identity management that allows users to take complete control of their private information by keeping their data on their devices and sharing it upon request.
With SSI, users themselves decide whether to reveal their data or not, which adds more security and flexibility to their digital experience. In this case, users don’t have to depend on other identity providers, who may use their private data for personal gain. Moreover, they are able to selectively reveal certain data without making available all of the information (e.g., showing you reached the age of majority without the necessity to present your passport).
From an e-commerce business perspective, an SSI solution allows merchants to process sensitive user data without storing it. With such an approach, they can shorten the time and reduce the effort needed for maintaining the security level of the stored information while heightening security at the same time.
Future of SSI: What Benefits Does It Bring to Retailers?
Two of the most essential benefits should be highlighted: trust from the customer’s side and cost-effectiveness.
To discover how SSI technologies can change the e-commerce environment for the better, let’s look through the main benefits of SSI for any modern merchant.
Enhanced omnichannel experience
The majority of online sellers pursue an omnichannel strategy, since it’s an efficient way to increase brand recognition and strengthen a company’s position in the market. At the same time, omnichannel shopping may be inconvenient for customers who have to confirm their identity through time-consuming password authentication methods every time they log in.
With SSI, website visitors are able to log in faster and prove their identity more easily, using a single identity for all channels.
Instant online checkout
With SSI, the entire shopping experience will go even faster. With a single click, a buyer is able to provide all the necessary payment info, and a seller, in turn, will be able to promptly receive and ensure the veracity of this data.
The slow checkout process is one of the main reasons for shopping cart abandonment and low conversion rates. In fact, checkout optimization can increase conversions by almost 36%. Companies fitted with SSI technologies have more chances to combat shopping cart abandonment and may even be able to forget about this problem forever.
Unprecedented personalization of user experience
In times of widespread AI in advertising and marketing, users are no longer surprised with product recommendation pop-ups across the web. Furthermore, some consumers opt for privacy during their web journey and don’t really want to encounter relevant ads based on their previous online behavior.
SSI gives users the opportunity to decide between personalized marketing or peace and quiet. It’s totally up to them to determine how their data will be used.
One might think the right to choose may negatively affect sales. Believe us when we say that a respectful attitude towards the target audience will never hurt in the long run and will only have the opposite effect.
SSI Passwordless Login: Is It Worth It?
With the spread of multiple online resources, the necessity to remember so many passwords can be inconvenient for users and system administrators who have to regularly resolve login issues. According to the statistics, an average internet user has up to 150 password-protected accounts. This number is expected to reach 300 by 2022. Additionally, many people use the same password to access different accounts, which underscores the high risks of hacking into accounts.
All in all, no one will be upset if the password login option is left behind. Nowadays, passwordless authentication is possible due to SSI-based technologies.
SSI passwordless login completely dispenses with the need for clients to remember their passwords and for entrepreneurs to store their clients’ passwords and other personal information. All users need to know is their wallet password.
Passwordless login adoption may help companies to prevent cyberattacks that take advantage of password login vulnerabilities, such as phishing and spear phishing, credential stuffing, and password spraying.
No passwords also means decreased total cost of ownership, as passwords add more tasks for the IT help desk. According to Forrester Research, large companies spend more than $1 million only on supporting and maintaining infrastructure. SSI technology implementation can help reduce this number.
SSI Wallet: Suitable Identity Manager
One might be tempted to ask the following question: if an SSI company doesn’t have to store its users’ private data, where should it be kept? Since clients are in full control of their own personal info, they are responsible for its collection and storage.
However, the client isn’t the only one who needs a digital wallet to make their digital identity self-sovereign. All participants of the SSI mechanism, namely the issuer, the holder, and the verifier, need an SSI wallet to issue, hold, and confirm details.
A digital wallet is an SSI technologies application where online users can store their verifiable credentials to be revealed when necessary in a private way.
A user can add different types of information to their wallet, including ID cards, payment cards, loyalty cards, and membership cards. Both the wallet and its content are portable, and no one besides the user has access to the data held there.
How to Simplify SSI Adoption with SSI Management Module?
Regardless of the merits of SSI, its implementation and management can be problematic for businesses, since SSI is based on various technologies, and each has its own infrastructure.
To provide simplicity and enhance the contribution of SSI to businesses, Etonec represents an SSI management module that effectively wraps up all infrastructure into a single interface for easier integration with business applications and facilitates the efficient conduct of basic operations that are necessary for onboarding, the creation of identities, the verification of credentials, and so on.
The central idea of the SSI management module suggests the creation of an abstract layer for the business application to reduce the complexity of SSI technology adoption and implementation within the business domain.
The integration of SSI technologies into your e-commerce business not only provides exceptional authentication solutions but also the possibility for users to share only the data they approve of validators receiving. SSI also addresses the security vulnerabilities common to password authentication methods and assists in lowering TCO.
Simply put, SSI technologies offer online entrepreneurs an innovative way of customer interaction, allowing for smooth and highly secure data processing. Never before have online businesses been allowed to dramatically enhance the user experience, lower TCO, and increase security all at the same time.
Being an early adopter is quite risky, we know. But it also means staying one step ahead of everyone else and having a huge advantage over more conservative companies.
If you are interested in the SSI solution and would like to follow this approach, the Dinarys team together with Etonec will be happy to integrate this technology into your web store.
All you need is to contact us, and our team of representatives will respond quickly to your request.
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