A decentralized framework for government issued NID using self sovereign identity

Abstract

As digital identity becomes increasingly essential for public services, national secu- rity, and individual autonomy, conventional centralized identity systems face critical challenges related to privacy, interoperability, and user control. Traditional iden- tity systems have profound limitations in the control and management of personal data. These systems typically rely on centralized authorities, where users’ personal information is stored in the hands of third parties and is often exposed to secu- rity risks. Incidents such as data breaches, identity theft, and unauthorized access to information occur regularly, posing challenges to protecting users’ privacy. In addition, these systems lack interoperability, making identity verification processes across platforms or organizations complex and time-consuming. Since users lack control over their own data, they are often subject to opaque data management and misuse. These limitations are incompatible with the mobility and security de- mands of the digital age, which further highlights the need for a decentralized and user-controlled identity system. To address these limitations, this paper presents a decentralized identity framework that transforms government-issued National ID (NID) credentials into Verifiable Credentials (VCs), anchored to a public blockchain infrastructure following Self-Sovereign Identity (SSI) principles [25]. In this model, citizens generate Decentralized Identifiers (DIDs) and retain full control over their credentials via user-managed digital wallets. The system eliminates reliance on centralized identity providers by employing end-to-end encryption, digital signa- tures, and tamper-proof credential hashing mechanisms. A complete prototype is implemented using Ethereum smart contracts and evaluated across multiple wallet platforms, including MetaMask, SpruceID, and Bifold, as well as a custom-built wal- let. Experimental results demonstrate enhanced usability, privacy, and scalability. Comparative analysis with OAuth 2.0, SAML-based federated systems, and decen- tralized social login solutions highlights superior user control and trust verifiability. By aligning with emerging digital identity standards such as the W3C Verifiable Credentials specification [26], this research offers a scalable, citizen-centric architec- ture suitable for national-level digital identity ecosystems. The framework achieves a balanced integration of governmental oversight and decentralized trust, paving the way for secure, interoperable, and privacy-preserving identity management.