Navigating the Evolving Landscape of Self-Sovereign Identity: From Failures to Future Promises

TL;DR

Self-sovereign identity (SSI) is advancing but fragmented: Sovrin’s shutdown in 2025 underscores funding and adoption woes, while standards like AnonCreds (zero-knowledge proofs ZKPs for deep privacy) and SD‑JWT (lightweight web disclosure) compete. Projects like cheqd.io, Dock, and ION drive innovation, but interoperability lags. The EU’s EUDI Wallet, rolling out by 2026 with pilots testing cross-border creds, could unify implementations in one user‑controlled app—enabling seamless, consent‑based data sharing and digital sovereignty.

Hey there, digital nomads and privacy enthusiasts!

If you’ve ever dreamed of owning your online identity like you own your wallet—complete with verifiable credentials, selective sharing, and zero Big Tech oversight—you’re not alone. Self-sovereign identity (SSI) is the tech world’s answer to reclaiming control over our personal data. But as we hit the tail end of 2025, the SSI space is a mixed bag: groundbreaking innovations, stubborn standards wars, and some high-profile stumbles. Drawing from a deep dive into the ecosystem, let’s unpack the current status of SSI, spotlight the Sovrin saga, explore competing standards, and envision how the EU’s Digital Identity (EUDI) Wallet could be the interoperability glue that ties it all together for everyday users. Buckle up—this is your comprehensive guide to where SSI stands today and where it’s headed. Get ready we are heading into the world of Verifiable Credentials (VCs).

The Rise and Fall of Sovrin: A Cautionary Tale in SSI

SSI burst onto the scene with promises of decentralized, user-centric identity systems, and few projects embodied that hype like Sovrin. Launched in 2016-2017 by the Sovrin Foundation, this blockchain-based platform aimed to create a global public utility for verifiable digital credentials using Hyperledger Indy tech. It championed privacy through zero-knowledge proofs (ZKPs), allowing users to prove attributes (like “I’m over 21”) without spilling unnecessary details. The great white hope!

But here’s the plot twist: Sovrin didn’t “fail” so much as it became unsustainable. By February 2025, the Foundation announced that the MainNet ledger shutdown was likely on or before March 31, 2025. Participation and funding dwindled as the ecosystem shifted.

Sovrin’s legacy? AnonCreds lives on as an open specification under Hyperledger with ledger‑agnostic implementations. Projects like cheqd provide migration paths to preserve selective disclosure and revocation patterns. Lesson learned: SSI needs sustainable funding and broad adoption, not just innovative crypto, enter stage left the EU Data Wallet project.

Competing Standards: A Battlefield of Privacy and Interoperability

SSI isn’t short on ideas, but it’s drowning in standards—each vying to be the go-to for verifiable credentials. At the heart are formats like AnonCreds and SD-JWT, which enable users to hold and present digital proofs without central authorities.

• AnonCreds: Born from Sovrin/Indy, this ZKP-heavy spec shines in privacy: think CL signatures for blinded issuance, predicates (e.g., proving “age >= 21” without showing your birthdate), and accumulator-based revocation that keeps things unlinkable. It’s computationally intensive but gold for sensitive use cases like health records. Now decoupled from ledgers, it works with any Verifiable Data Registry (VDR), from blockchains to simple servers. What is not to like?

• SD-JWT (Selective Disclosure JSON Web Token): An IETF darling, this extends standard JWTs with hashed claims and salts for lightweight disclosure. It’s web-friendly, integrates with OAuth/OpenID, and supports nested structures—but lacks native predicates or ZKP revocation, relying on external mechanisms like status lists. Easier on performance, it’s great for quick verifications in apps, though weaker against collusion or advanced attacks.

These aren’t alone. W3C’s Verifiable Credentials Data Model (VCDM) defines the data model; common encodings include VC-JWT (JOSE) and Data Integrity (e.g., Ed25519Signature2020, BBS+). The IETF specifies the SD‑JWT VC profile. AnonCreds is a separate specification with bridges to VCDM in some stacks, but it’s not itself a VCDM format. Then there’s ISO’s Mobile Driving Licence (mDL) for physical‑digital hybrids. Work on BBS+ signatures continues, but support varies by implementation.

The rub? Fragmentation. AnonCreds excels in deep privacy for decentralised setups, while SD-JWT prioritises simplicity for web ecosystems. Without bridges, users end up juggling wallets and apps, diluting SSI’s “self-sovereign” promise.

Standards status (late 2025): the core SD‑JWT draft has been submitted to the IESG for publication, and the SD‑JWT VC draft adds rendering/integrity metadata and claim path semantics—useful for wallet UX and verifier display. BBS+ work within W3C Data Integrity remains in progress and availability differs across implementations.

The Current Players: Projects Pushing SSI Forward

Despite Sovrin’s wind-down, SSI is buzzing with activity. Here’s a snapshot of key projects as of late 2025:

• cheqd.io: A Cosmos-based blockchain for SSI, blending Decentralised Identifier (DIDs), VCs, and privacy payments. It supports AnonCreds, SD-JWT, and OpenID4VC, with Trust Registries for verifiable AI agents. Recent wins include an alliance with Dock and participation in industry accelerator programmes. It’s all about monetising trusted data without surveillance.

• Dock Labs: Post-merger with cheqd, Dock focuses on enterprise credentials via the Dock Platform—reusable KYC, biometrics binding, and selective disclosure. It’s Substrate-rooted but now leverages cheqd’s chain for lower costs.

• ION (Identity Overlay Network): A permissionless DID network anchored on Bitcoin via the Sidetree protocol—no new token and no extra consensus. Microsoft Entra Verified ID supports did:ion alongside did:web; FaceCheck for liveness/matching reached GA on 2024‑08‑12. Entra’s revocation approach uses status lists.

• walt.id: A toolkit powerhouse with SDKs for issuers, wallets, and verifiers. Blockchain-agnostic, it emphasises eIDAS compliance and quick deployments—think embedding wallets in apps without building from scratch.

Other notables: IOTA Identity (feeless DAG for cross-border KYC), Polygon ID (ZKPs on Ethereum), Metadium (token-governed for Asian enterprises), Trinsic (API-driven for reusable IDs), Hyperledger Identus (open-source agents from Indy roots), Veramo (modular JS for multi-chain), Evernym (cybersecurity-integrated), Tykn (humanitarian focus), and SpruceID (Ethereum libraries).

The trend? Hybrid models blending decentralised tech with regulatory nods, especially in Europe. But interoperability remains the elephant in the room—users want one wallet, not a dozen.

The EUDI Wallet: A Beacon for Interoperability and User-Centric Identity

Enter the EU Digital Identity (EUDI) Wallet, the game-changer that could unify this mess. Mandated by eIDAS 2.0, it’s a secure mobile app for storing Person Identification Data (PID) and attributes, rolling out across EU states by 2026. Think: one wallet for IDs, diplomas, prescriptions, and payments, with ZKPs/SD-JWT for selective sharing.

How could it bridge competing standards? The EUDI’s Architecture and Reference Framework (ARF) v2.4.0 frames the stack with clear modality and trust models:

• Remote flows: OpenID for Verifiable Presentations (OpenID4VP) and Credential Issuance (OpenID4VCI).
• Proximity flows: ISO/IEC 18013‑5/7 (mDL/mdoc) with HAIP.
• Credentials: SD‑JWT VC profile for selective disclosure in the current ARF line.
• Trust: PKI‑based Trusted Lists and Trust Registries as the anchor—not blockchains; qualified e‑signatures (QES) are required “by default and free of charge” for legal effects.
• Revocation: Status‑list based (for example, W3C VC Status List 2021) in ARF contexts, rather than accumulator proofs.

Pilots as proof: Ongoing tests (e.g., WE BUILD for business wallets, APTITUDE for travel/payments) demonstrate cross‑border journeys and UX/accessibility lessons.

Imagine: A user loads their credentials into the EUDI Wallet. Via OpenID for Verifiable Presentations (OpenID4VP) and OpenID for Verifiable Credential Issuance (OpenID4VCI) flows, they consent to share just “degree type” with a job verifier or “age proof” for a bar app. In ARF‑profiled contexts, revocation is handled via status lists.

For end-users, this means one location for all data: sovereign control, granular consents, and seamless cross-border use. No more app-hopping—consent once, share selectively, revoke anytime. Pilots like DC4EU (education/social security) and NOBID (payments) show it’s feasible, with blockchain backends preventing correlation.

Wrapping Up: SSI’s Path to Everyday Reality

SSI in 2025 is resilient but fragmented—Sovrin’s fade-out underscores the need for sustainable models, while standards like AnonCreds and SD-JWT duke it out for dominance. Yet, with projects like cheqd, Dock, and walt.id innovating, and Microsoft’s ION adding enterprise polish, the ecosystem is maturing.

The EUDI Wallet could be the catalyst, enforcing interoperability and putting users first. By 2027, we might see a world where your digital self is truly yours—one wallet, infinite possibilities. If you’re building in SSI, start eyeing EU pilots for collab opportunities. What’s your take—will EUDI crack the code, or is more chaos ahead? Drop a comment below!

Appendix: Additional Data Tables for SSI Insights

To dive deeper into the specifics mentioned in the post, here are some handy tables. First, a breakdown of the EU Digital Identity (EUDI) Wallet pilot projects, which are crucial for testing interoperability and real-world application. Then, I’ve included comparison tables from our discussions on key SSI projects like cheqd vs. Dock and cheqd vs. Microsoft ION for quick reference.

Table 1: EU Digital Identity (EUDI) Wallet Pilot Projects Overview

Table 2: cheqd vs. Dock Features Comparison

Table 3: cheqd vs. Microsoft ION (with Entra Verified ID) Features Comparison

These tables add depth to the SSI discussion, highlighting practical implementations and comparisons. Feel free to slot them into the blog for better flow!

Table 4: What are each of the EU Member States doing?

Under the eIDAS 2.0 regulation, which came into force in May 2024, all EU Member States are mandated to provide at least one EU Digital Identity (EUDI) Wallet to their citizens, residents, and businesses by 2026. This user-controlled digital wallet enables secure storage and sharing of verifiable credentials (e.g., IDs, diplomas, licences) with privacy features like selective disclosure. The rollout must be completed by the end of 2026, with some flexibility based on implementing acts (e.g., technical specifications). Member States are participating in large-scale pilots to test interoperability and use cases, ensuring compliance while building on existing national eID systems. The table below summarises each state’s status, timeline, and key actions as of September 2025.

Appendix: What is the DC4EU Project?

The DC4EU Project

The Digital Credentials for Europe (DC4EU) is one of the four initial large-scale pilots under the EU Digital Identity Wallet (EUDIW) initiative, funded by the European Commission to test the interoperability, usability, and scalability of the EUDI Wallet in real-world scenarios. Launched in April 2023 and concluded in September 2025, the project focused on the education and social security sectors, aiming to enable cross-border exchange of verifiable credentials while aligning with eIDAS 2.0 and the European Blockchain Services Infrastructure (EBSI).

Key details include:

• Objectives: To develop and pilot digital services for issuing and verifying educational credentials (e.g., diplomas, micro-credentials) and social security entitlements (e.g., Portable Document A1 for worker mobility and European Health Insurance Card). It emphasized privacy-preserving hybridization for cross-sectoral use cases, providing feedback for EUDI Wallet refinements.
• Partners: Led by Spain’s Secretaría General de Administración Digital, with co-leads from Greece (GUNET, GRNet), Austria (Dachverband der Sozialversicherungsträger), Finland (VM Ministry of Finance), and others like Géant, SUNET, and the European Campus Card Association. Involves nearly all EU Member States, educational institutions, social security agencies, and tech providers.
• Use Cases: Onboarding base identities, education domain (credentials issuance), social security (PDA1 execution, EHIC), integrations with existing systems, and ecosystem building for policy support.
• Outcomes/Status: As of September 2025, the project has concluded, delivering blueprints for privacy-focused credential exchange, technical insights on EBSI, and recommendations to the EU Toolbox. It tested full wallet journeys and contributed to the broader EUDI rollout by 2026.

DC4EU highlights the EU’s push for user-centric SSI in public services, influencing standards like W3C VCDM and OID4VC.

Appendix: Other Global Standards and Initiatives

Other Global Standards

While the EUDI Wallet sets a benchmark for decentralised, privacy-focused digital identities in Europe, several global alternatives compete or offer parallel approaches, often emphasising national sovereignty, mobile integration, or centralised control. These draw from standards like ISO/IEC 18013-5 (for mobile driver’s licences) and NIST guidelines, contrasting EUDI’s cross-border focus with more localised or tech-specific implementations. Here’s a brief overview:

• United States Mobile Driver’s Licence (mDL): Based on ISO/IEC 18013-5, this standard enables digital wallets for driver’s licences and IDs, adopted in over 10 states (e.g., California, Arizona). Key features: Selective disclosure via ZKPs, NFC/QR for verification. Compares to EUDI by focusing on mobility and privacy but lacks EU-style cross-state mandates, leading to fragmentation; influenced by NIST SP 800-63 for federal guidelines.
• Singapore’s Singpass: A centralized national digital ID system with a wallet app for over 4 million users, supporting biometrics and verifiable credentials for services like banking and healthcare. Uses custom standards with OAuth integration; competes with EUDI’s decentralization by prioritizing efficiency in a single-nation context, but raises privacy concerns due to government control.
• Australia’s myGov Wallet: Part of the myGovID system, it stores credentials for government services using ISO standards for mDL. Features include biometric auth and data minimisation; similar to EUDI in user control but more centralised, with pilots for international interoperability (e.g., with New Zealand).
• India’s DigiLocker: A cloud-based wallet for documents and credentials, integrated with Aadhaar (biometric ID). Relies on national standards with API access for verification; differs from EUDI’s SSI by being more centralized and scale-focused (over 200 million users), but shares goals of reducing paperwork.
• Global mDL Initiatives (e.g., via AAMVA in North America): Promote ISO 18013 for vehicle-related IDs, with pilots in Canada and Mexico. Emphasize offline capabilities and security; compete with EUDI by targeting transport sectors but lack broad credential support.

These standards often intersect with W3C (e.g., DIDs) but prioritize regional needs, potentially leading to global fragmentation unless harmonized through bodies like the UN or ISO. EUDI’s edge lies in its mandatory EU-wide adoption, which could influence international norms.

Appendix: Comparison of UK Identity Assurance Principles with EUDI Wallet Implementation

This appendix compares the UK Government’s Identity Assurance Principles (as outlined in the provided document) with the implementation in the EU Digital Identity (EUDI) Wallet ecosystem. The EUDI Wallet, governed by eIDAS 2.0 and the Architecture and Reference Framework (ARF), emphasizes user-centric design, privacy by default, and interoperability. The comparison is based on official ARF documentation, highlighting alignments, implementations, and any gaps as of September 2025.

Comparison Table: UK Principles vs. EUDI Wallet Handling

References (selected)

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2. IETF. “Selective Disclosure for JWTs (SD-JWT).” Draft −22, May 29, 2025.

3. OAuth. “SD-JWT-based Verifiable Credentials (SD-JWT VC).” Draft, July 29, 2025.

4. EUDI Wallet Dev Hub. “Architecture and Reference Framework (v2.4.0).” Accessed September 26, 2025.

5. Microsoft Learn. “Microsoft Entra Verified ID — What’s New.” Accessed September 26, 2025.

Appendix: Extended references

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2. Hughes, Riley. “An End of an Era: Sovrin Foundation Announced.” LinkedIn, October 21, 2024.

3. ID Tech Wire. "‘The Community Moved On’: Sovrin Announces MainNet’s ‘Likely Shutdown’." IDTechWire.com, October 21, 2024.

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