Combining Verifiable Credentials and Blockchain Tokens for Traceable and Offline Token Operations
Srivatsav Chenna, Christian Prehofer · 2023
As data becomes an integral part of various industries, it introduces new challenges in the increasingly connected environment. This gives rise to the necessity for new data sharing infrastructure which is secure and transparent. In this paper, we present an offline authentication and traceable ownership transfer solution using decentralised technologies like Self Sovereign Identity (SSI) and Blockchain. We provide a comprehensive comparison of SSI, Blockchain and centralised Identity and Access Management (IAM) system and highlight the merits and limitations of each technology. Although these technologies have their benefits, the ability to operate offline while providing traceability is still a challenge. To tackle this, we propose a novel concept which links SSI verifiable credentials and Blockchain tokens. We consider an offline authentication and ownership transfer example to further detail the concept in a practical setting. Through this research, we aim to highlight the benefits and research challenges with the application of SSI and Blockchain together for secure decentralised identity management solutions.