The Digital Identity revolution: from centralisation to data sovereignty

Digital identity management has evolved from centralised and federated models towards an approach where users are in control, promising greater security and privacy. The upcoming implementation of the European Digital Identity Wallet (EUDI Wallet) marks a major step forward, empowering European citizens to manage their personal data with sovereignty and official recognition across the EU.

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Have you ever felt trapped in the maze of digital identity? A password here, another there... and that constant worry about whether your data is truly safe. Opening an account, accessing a service, buying something online — every step seems to require giving away a little more of yourself.

This fragmentation not only frustrates us as users, but also opens the door to serious privacy and security risks. How many times have we feared a data breach or wondered where and how our information is being used once we've handed it over?

This challenge has driven a much-needed evolution in how we conceive and manage digital identity — culminating in the promising vision of self-sovereign identity and the imminent arrival of the European Digital Identity Wallet (EUDI Wallet).

To understand the leap we're about to take, it's essential to look back at the journey so far and how we've attempted to manage our identity in the digital world.

Centralised identity: the early days of the web

At the beginning — from the early days of the internet — digital identity developed in a fully centralised way. This meant that every website, every online store, or email service where you registered would ask you to create a separate username and password. All your information for that service lived on that company's servers.

Now imagine having a different key for every door in your city. Quite a lot to manage, right? For users, this translated into: a never-ending list of passwords impossible to remember, a constant risk of data leaks if any of those companies were attacked, and worst of all: zero control over what happens to your information once you hand it over.

Federated identity: seeking convenience

To tackle the credential chaos and simplify access, the concept of federated identity emerged. Sound familiar — "Log in with Google" or "Log in with Facebook"? That’s exactly it. The idea is simple: a large, trusted provider (like Google or Facebook) verifies your identity, and then "federates" or shares that verification with other services that trust them. One master key to open several doors.

This model was a major relief, of course. Fewer passwords to remember. But be careful — it wasn’t a perfect solution. Relying on a few major providers raised privacy concerns, as these intermediaries gained a consolidated view of users’ online activity. Plus, identity "silos" began to form, limiting competition and innovation across the digital ecosystem.

Self-Sovereign Identity (SSI): putting identity back in your hands

And that brings us to Self-Sovereign Identity (SSI). Here’s where things get truly exciting. The philosophy behind SSI is about putting you back in the driver’s seat: you control your digital identity. Instead of your data being stored by third parties, you own it, manage it, and decide when and with whom to share it.

Think of it as being the sole owner of your key — and every copy of it — without having to rely on anyone else. Even better: you decide which parts of that key to share. Need to prove you're over 18 on a website? There's no need to give your exact date of birth or home address. You simply present a cryptographic proof that says, "This person is over 18." Like magic!

This is made possible by technologies such as blockchain and verifiable credentials, which enable secure, decentralised verification, reducing the need for intermediaries. That means you only share what's absolutely necessary, and your identity is portable — not tied to any one provider. This is the future we’re building, and the European Digital Identity Wallet is a huge step towards making it a reality across an entire continent.

The European Digital Identity Wallet: your digital ID card in your pocket

The European Commission has long recognised the potential of this identity model, and has been working for years on the concept of a digital wallet (EUDI Wallet) that enables all citizens to manage their digital identity.

The EU Digital Identity Wallet (EUDI Wallet) is not just another app; it’s a pioneering initiative designed to give European citizens and businesses a secure, private, and convenient way to verify their identity and share personal data digitally. It’s the cornerstone of the new eIDAS 2.0 Regulation, which updates the previous framework so that your digital identity is recognised and functions seamlessly across the EU.

So what exactly is the EUDI Wallet?

It’s envisioned as a mobile app that will securely store a range of verified identity documents and attributes — such as your national ID, driver’s licence, academic degrees, banking credentials or even medical prescriptions. Beyond storage, its key functionality lies in allowing users to present and share these attributes selectively and verifiably — all with full control.

The wallet will serve not just as a digital container, but as a tool where the user has absolute control over their data, with official recognition across the European Union, as it will be issued by the Member States.

Benefits: a safer and more seamless future for all

The arrival of the EU Digital Identity Wallet, supported by the eIDAS 2.0 Regulation, will bring many advantages — for both individuals and businesses or public administrations.

For citizens: empowerment and simplicity

• Greater privacy control: Users will have the power to decide what personal data to share, with whom and when — minimising the exposure of non-essential information.
• Simpler and faster processes: Opening a bank account, applying for a loan, renting a vehicle, or accessing public and private services will become much faster, thanks to the elimination of manual checks and the need for physical documents.
• Improved security: By avoiding the storage of personal data in multiple centralised databases, the risk of cyberattacks is reduced — strengthening protection against identity theft and data breaches.
• Portability and EU-wide validity: The digital wallet will ensure that your digital identity is recognised and interoperable across all EU countries — making life easier for those who live, work or travel within the region.

For companies and businesses: efficiency and trust

• Process optimisation: Organisations will reduce the costs and time associated with identity verification and "Know Your Customer" (KYC) and Anti-Money Laundering (AML) procedures.
• Enhanced security and reduced fraud: Reliable digital identity verification increases trust in electronic transactions and reduces the risk of fraud.
• Boost to the Digital Single Market: Standardising identification and authentication methods across the EU will help expand cross-border business and develop the Digital Single Market.
• Simplified regulatory compliance: The wallet will support organisations in complying with privacy regulations such as the GDPR, by allowing them to request and process only the strictly necessary data.
• Improved user experience: Smoother onboarding and authentication processes will lead to better customer experiences, resulting in greater satisfaction and loyalty.

We’re on the cusp of a major shift in how we manage digital identity. From depending on others, we’re moving towards a model where the individual takes back control. The EUDI Wallet is much more than just an app — it's a bold step toward a more secure, private, and efficient digital ecosystem for everyone in Europe, all under the umbrella of the eIDAS 2.0 Regulation.

This ecosystem not only promises greater security and privacy for individuals, but also signals a profound transformation in the efficiency and trust of digital interactions for businesses and public administrations across Europe.

What do you think about this change? Are you ready to take control of your digital identity?

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