01 Introduction
01 Introduction
01 Introduction
FOUNDATIONS
OF DECENTRALIZED IDENTITY
Atala Foundations Foreword
Thank you for your interest in Atala and our Foundations Pioneer We believe that building systems for positive outcomes do not
Course. Self-Sovereign Identity is a fascinating topic that we believe happen by accident. Having the intent and practice of self-
has the power to offer long-term positive social impact globally. improvement for ourselves and the people we work with gives us
SSI today is used to improve supply chain management by making better odds of building systems that will improve people’s lives.
data flow more reliable and transparent, leading to more efficiency.
Implementations that follow the privacy by design principles of SSI We also introduce foundational concepts from ‘Patterns of
return agency and ownership of digital identities back to individuals. Commoning’ that show us that people have always found novel
ways to work together to achieve common goals–and there is no
In this reader, you will find an introduction to the fundamental single way to cooperate and collaborate. Our Pioneer community is
concepts necessary to build your own decentralized ecosystems; a commons with a shared goal to build incredible SSI applications.
issuers, holders, verifiers, trust frameworks, governance frameworks, As you get deeper into your understanding of creating decentralized
trust registries, etc. These concepts and tools bring the human ecosystems, these patterns will become more powerful when
element into Web3 applications, which allows us to convey who applied to incentive structures by leveraging the power of smart
we are into the layer-1 blockchain contexts we know and love– contracts and native crypto assets. What we cover here just briefly
with their permissionless, censorship-resistant, and innovative introduces the topic.
consensus algorithms, whether on Cardano, Ethereum, or any other
cryptocurrency blockchain. A few examples of SSI’s new possibilities We hope you enjoy our treatment of the foundations for building
are next-generation governance protocols for DAOs, alternative ecosystems that unlock mobility for people worldwide. This is just
education and career pathways, emergent reputation systems for the first step in a long and productive journey into the world of
diaspora populations, and loyalty programs. possibilities Web3 offers for you.
Welcome to Atala PRISM: Foundations. We are excited to have you join us on this journey
as we explore identity, as it is today, and what it can be in the future. With the following
material, our goal is to explore the complexities of identity in the digital world and outline
how we can improve upon the systems we use today.
Who we are is personal and intimate, and even though it is becoming more entwined with
businesses and services online we are finding ways to protect what makes us individuals.
In many cases, we give up control of who we are for access and convenience. Today we
find ourselves at a crossroads–do we continue down the path of allowing multi-million
and billion-dollar companies to control our identity and data? Or do we retake control
of our identities and data?
Over the past 15 years, emerging technology has kicked open the doors to allow users to
manage their identities. Blockchain technology has been a revolutionary development.
Cryptocurrencies are what most people think of when blockchain comes up in
conversation, they are essential, but there is more that blockchain offers in utility.
Bitcoin was a spark at the right time. In 2009, in the aftermath of the 2008 global financial
crisis, its creation enabled financial independence and created portability, access,
and an alternative to the traditional banking system. In the early days, many detractors
were saying Bitcoin would never be achievable or valuable. Today, many people,
businesses, and even countries use and accept it as legal tender.
The Bitcoin story is helpful while discussing utility. There was a tool, blockchain, that Satoshi
Nakamoto conceptualized, this tool was essential in building a new financial system,
and there was a need, the financial crisis. Pairing the blockchain with a new finance
protocol was the first in a long line of innovations in blockchain technology.
Identity is the essence of who we are. A quick aside, an entity is defined as a thing Let’s say I bank with Acme Bank. They know
It comprises our immutable characteristics with a distinct and independent existence. about me and how much money I have
like race, sex, ethnicity, date of birth, and When we refer to identity, we speak to any because I have an account with them. If I
our mutable personas like online accounts, person, organization, corporation, business, walked into Mega Bank and asked for my
where we bank, our cell phone provider, physical or digital thing. We will use the funds, they would have no record of me or
etc. As we navigate daily life, everyone and term entity throughout this text with this my funds and would probably assume that I
everything we interact with converges with denotation. was attempting to rob the bank.
portions of our identity. It sounds ludicrous because it is. We do
Every individual has varying levels of trust not go to a different bank for access to our
In our exchanges with strangers, family, that take time to develop. It is a personal account–we go to our bank, where we are
friends, or businesses we leave traces of decision ingrained in our life experiences. known. These documents are not us.
ourselves behind. The information that we Nobody should be coerced into sharing They represent something about us. It is
share with individuals can be stored within information if they are uncomfortable critical to distinguish between who we are
human memory, likewise, the information with it. This idea is not an earth-shattering and authenticating information about us.
that we share with businesses is stored revelation, but it is essential to remember
within a data storage medium–to be that the decision should be ours.
recalled at a later time/date by both parties. “Identity is this incredible invisible
Because this level of data storage occurs, We should be able to distinguish between force that controls your whole life.
when we communicate with people, we who we are and the information about us
It’s invisible like gravity is invisible,
carefully control the information that we that gets authenticated. If I said my favorite
share in an attempt to mitigate our risks. color is blue, it might be accurate, but there but it controls your whole life.”
Digital interactions are more complex is no way to prove that. If I were required
Tony Robbins
because we do not control the data flow. to prove my age, that is something I can
There are pieces of information that we are authenticate with a government ID or
required to provide. a birth certificate.
Across the globe, people use their identities in different ways. Someone in the
United States is more likely to use a driver’s license daily than someone in Japan,
where public transportation is more widely accessible.
Every time we use a cell phone, social media, email, text, access a
bank account, or turn the lights on, we engage our identity. We have
a relationship with these entities through accounts or credentials
required to interact with them. If we had no credentials, how would
the cell phone provider or electric company know how much of the
utility we used and where to send the bill?
While we wait for our coffee, we may be texting friends, browsing social media, or talking
to someone on the phone. These interactions bring in the cell phone company and the
individuals we communicate with. We would easily add dozens of interactions during the
few minutes we are waiting. Conservatively, we can estimate 15 connections during our 15
minutes at the coffee shop.
If we begin adding these up throughout the day, that is 60 connections an hour and closing
in on 1,000 per 16 hours of being awake. Remember, this estimate is on the low side of the
scale–in many cases, this number will be much higher.
Hopefully, this has helped express how integral our identity is in our daily lives. Often, we
do not think about these associations or even consider engaging with them and sharing
information–but we constantly have these interactions throughout our day.
There are a lot of dystopian ideas about digital identities. A widely used protocol to manage our personas is a process
Many of these ideas come from the book 1984. Citizens are called single-sign-on (SSO). This protocol allows us to sign in to
constantly under surveillance for their actions and the information another service through an existing relationship. An example of this
they share. The notion of big brother is a genuine concern, is Google. If you have an account with Google, you can use that
but as we walk through how it works, we hope to dispel these credential to access hundreds, if not thousands, of other services.
apprehensions. The uneasiness about fiction becoming a reality These services that offer SSO are called IDPs (identity providers).
is understandable. They offer conveniences but have many drawbacks that we will
explore later.
One of the best ways of countering these narratives is transparency.
In part, that is what we are doing here. There are several identity
models in use today. Looking at each and how they work will
illuminate the problems and benefits.
The last issue to discuss is identity theft. Having so much of our identity in the hands
of others opens us up to this growing problem. Our digital accounts can become
compromised, exposing any connected data, like bank accounts, credit cards, etc.
Theft occurs in physical documents, but digital identity is more prevalent
because of the flaws in the existing systems.
No matter what kind of product we are working on, we need to A question that we must ask ourselves in order to create more
reflect on our actions. Whether that be an algorithm, user interface, user-friendly technology for the future, without diving too deeply
experience, or hardware stack, all of our decisions impact the users into ethics is: What is the good life? Each of these philosophies
of our products. Are we creating something fair and responsible for defines it differently based on their ideas. As people in the emerging
individuals and humanity? Who defines these ethical principles? technology space, we should have some idea of what the good life
is for the users of our systems so that we can create technology
These are big questions. Answering the question is dependent on that works for the people. What that is should be carefully thought
what philosophical theory we follow. Do we draw upon our ancients, out, planned, and researched before sending something into the
such as Aristotle, Confucius, and Buddha–or modern philosophers, world.
maybe a combination of them all? Deciding on which ethical
framework to follow is not the focus here; the important part is There are many ethical considerations for a product that deals
applying some of these considerations to what we build. with identity, but several are crucial: accessibility, security, privacy,
agency, and censorship-resistance. We must understand the
We will not explore too deeply into the philosophical ideas and challenges outside of our geographic spaces to build a viable
debates regarding ethics. There are dozens of books written by product for all.
people who have studied these for decades. For continued
reading about these ethical frameworks, refer to the Ethics section An example of this is a conversation I had with a gentleman
in the Appendix. from Zambia, Africa. He explained that government IDs and birth
certificates do not get issued. In Zambia, the most common
document used for proving who you are is a certificate of baptism.
In most Western countries, this idea seems unbelievable because it
Sunlight is the best disinfectant.
is a keepsake document. This example is the kind of consideration
and understanding we should have when creating any product.
Ethics and likely to promote the ultimate aim of all human action: human flourishing or
living well (which for social animals like us, always means living well with others).
2.1 Classical Virtus Traditions: Aristotelian, Confucian, and Buddhist Ethics
A virtuous person reliably discerns and employs effective practical means to
2.1.1 Aristotelian Ethics achieve these ends, as appropriate to the specific circumstances in which he
The ancient Greek philosopher Aristotle (384-322 BCE) greatly extended and finds himself. So, for example, we can imagine that in one situation a virtuous
modified the ethical teachings of his Athenian predecessors Socrates and Plato person may best promote the moral end of fiercely protecting an important
in a definitive series of lectures on the good life, the notes of which were collected secret; yet in a different time and place, the same person might rightly judge that
in a volume titled Nicomachean Ethics. With the notable exception of its enduring promoting the moral end requires him to expose that secret.
influence upon the Catholic moral tradition (largely owed to the writings of St. In Aristotle’s view, this discerning skill in living rightly is cultivated through a
Thomas Aquinas), Aristotelian ethics largely fell out of favor in the modern West process of habituation and gradual refinement of one’s character, in which one’s
until the mid-20th century, when it was returned to contemporary relevance by repeated practice of moral actions is guided and encouraged by a combination
a growing community of neo-Aristotelian virtue ethicists. As noted in Chapter of proper laws, moral education, and the presence of noble human models
1, its current revival is generating new scholarly interest in the applicability of (called phronimoi: ‘practically wise persons’) who exemplify and inspire virtuous
Aristotelian ethics to contemporary moral problems. living. In a fully cultivated or virtuous person (a phronimos), one’s habits, thoughts,
Many key features of Aristotle’s ethics were sketched in Chapter 1. However, it and emotions have been refined and harmonized to such a degree that virtuous
will help to summarize the core commitments of his approach. Aristotle claimed actions are consistent, produced with spontaneity and pleasurable ease, infused
that the highest good of a human life, that for the sake of which all voluntary with appropriate moral feeling and belief, and above all, intelligently guided by
human action occurs, is eudaimonia (variously translated as ‘happiness’ or practical wisdom or phrónēsis. While Aristotle reserves the very highest and rarest
‘human flourishing’). He claimed that eudaimonia is constituted by a complete form of eudaimonia for those suited to a life of theoretical reason–that is, a life
life of virtuous activity, defined as excellence in the active fulfillment of our unique spent contemplating eternal and divine realities–he claims that any human being
function (ergon) as human beings. Believing this function to be the exercise of our equipped with practical reason and a basic level of material security can achieve
capacity to reason, Aristotle argued that its fulfillment in a life of happiness with a flourishing and happy life through political activity and civic friendship (philia
others presupposes the self-cultivation of various moral excellences of ‘virtues’ politikē). This counts as eudaimonia because, like philosophical contemplation,
(arêtes) of character, such as courage (andreia), honesty (aletheia), patience living well in community with others also requires the constant exercise of our
(praotes), friendliness (philia), justice (dikaiosynē), and moderation (sōphrosúnē), distinctive capacity for higher reasoning. For Aristotle, expressing this function
along with the unifying intellectual virtue of practical wisdom (phrónēsis). (ergon) of our particular animal kind is what makes our lives humanly good.
Still, there are deep disagreements between Buddhism and other virtue Technology and the Virtues, 2016, p. 36-44
traditions, and among various Buddhist schools, about the good life and the path
leading to it. First and foremost, while individual points of contact can be found
between the expansive catalog of Buddhist virtues and the far more limited
Aristotelian and Confucian ones, the overall character profiles of the exemplary
person appear quite different among all three. In particular, the Buddhist virtues of
humility, detached equanimity, and expansive compassion find no clear parallels,
and even direct opposition, in the Aristotelian model which encourages great men
to cultivate a character marked by warranted pride, appropriate ambition, and
righteous indignation.
Comparing the profiles of the Buddhist and Confucian virtues may at first seem
to reveal closer affinities; but even here, virtues that seem nominally similar turn
out to have very different meanings in their full moral contexts. For example,
one might try to pair the virtue of Buddhist generosity (dāna) with Confucian
benevolence (ren), or Buddhist compassion (karunā) with Confucian empathy
(shu). Yet such an impulse obscures the fact that while Buddhist regard traditional
kinship loyalties as resulting from deluded ignorance of our common nature
and our moral obligation to reduce suffering for all creatures, the Confucian
worldview emphasizes graded love and compassion, with those to whom we are
related and to whom we have incurred reciprocal social obligations having a far
stronger claim to our generosity and concern than do strangers. Faced with a
The Atala PRISM Pioneer Program trains professionals, UX designers, and software Got a question about any aspect of Atala PRISM? Just send a message and
developers to design decentralized identity solutions and ecosystems using the someone from the appropriate team will be in touch.
Atala PRISM Software Development Kit (SDK).
Credits