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Self-sovereign identity and digital wallets

Author

Listed:
  • Matthias Babel

    (Branch Business & Information Systems Engineering of the Fraunhofer FIT)

  • Lukas Willburger

    (Branch Business & Information Systems Engineering of the Fraunhofer FIT)

  • Jonathan Lautenschlager

    (Branch Business & Information Systems Engineering of the Fraunhofer FIT)

  • Fabiane Völter

    (University of Bayreuth)

  • Tobias Guggenberger

    (University of Bayreuth)

  • Marc-Fabian Körner

    (University of Bayreuth)

  • Johannes Sedlmeir

    (University of Luxembourg)

  • Jens Strüker

    (University of Bayreuth)

  • Nils Urbach

    (Frankfurt University of Applied Sciences)

Abstract

Current approaches to managing digital identities struggle to meet the demands of ongoing digital transformation. They either create fragmented identities tied to specific online services, making it difficult for users to manage, or they raise concerns about being locked into corporate identity providers and data protection issues. Additionally, they provide limited support for machine-verifiable identity attributes. This reliance on third parties for managing machine identities can put companies at a market disadvantage. Therefore, there is a pressing need for a unified identity management solution that allows for the portable and interoperable use of verifiable identity data across services. The recently announced European Digital Identity Wallet marks a significant step forward in digital identity management. This initiative aims to provide EU citizens with a unified, secure, and convenient way to access both public and private online services, thereby enhancing the efficiency and security of digital interactions and prioritizing user needs. Self-sovereign identity (SSI) forms the basis for such a wallet-based identity ecosystem that supports electronic market growth. However, as a relatively new concept, SSI still lacks a unified theoretical analysis and a thorough exploration of its value propositions for digital ecosystems and networked businesses.

Suggested Citation

  • Matthias Babel & Lukas Willburger & Jonathan Lautenschlager & Fabiane Völter & Tobias Guggenberger & Marc-Fabian Körner & Johannes Sedlmeir & Jens Strüker & Nils Urbach, 2025. "Self-sovereign identity and digital wallets," Electronic Markets, Springer;IIM University of St. Gallen, vol. 35(1), pages 1-14, December.
    • Handle: RePEc:spr:elmark:v:35:y:2025:i:1:d:10.1007_s12525-025-00772-0
    DOI: 10.1007/s12525-025-00772-0
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    References listed on IDEAS

    as
    1. Franz, Anjuli & Benlian, Alexander, 2022. "Exploring interdependent privacy – Empirical insights into users' protection of others' privacy on online platforms," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 152754, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. repec:dar:wpaper:133552 is not listed on IDEAS
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    10. Konrad Degen & Timm Teubner, 2024. "Wallet wars or digital public infrastructure? Orchestrating a digital identity data ecosystem from a government perspective," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-25, December.
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    More about this item

    Keywords

    DID; eIDAS; Identity ecosystem; Privacy; User centricity; Verifiable credential; Zero-knowledge proof;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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