Event Recording

SSI Market Size (and opportunity in web3.0) and use cases

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Who is this new beast, which widespread technology is going to be used everywhere from banking to metaverse, travel to healthcare? The technology that has no limits in its application across sectors is equally welcome in centralised and decentralised worlds. Meet, self-sovereign identity (SSI).

How do you quantify the impact of a paradigm which will completely transform how we interact with identity and more broadly, authentic or trusted data? Our estimates say its market size is $550b / $0.55Tr.

We’ll give a brief rundown of SSI applications across Finance, NFT, Banking, Crypto and many more.

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Cool. So, yeah, FRA from checked, we only started in April last year. So this is kind of almost our birthday and we're creating the trusted data economy. We can get into that if there are any questions, but really what this is focusing on is the SSI market sizing that we did recently opportunities in web three and some use cases that we'll go through as well. Unfortunately, you're stuck with me, but I'm normally just trying to get out of the way of the rest of our team, who is absolutely fantastic with a mix of experience from leading things like the known traveler, digital identity projects with the NHS and the UK amongst other things. Okay. So originally I had these slides before realizing that literally everyone here knows what SSI is. So I'm pretty certain I can skip this unless anyone raises a hand that they really want me to go through this again.
Cool. Okay. That saves us some time. Okay. So create a bit, bit of a narrative. Why did we research the market size in the first place? So basically we were fundraising. So obviously sighting a company in April of last year. You need to raise funds. And typically, normally you're doing this against a total addressable market. You're looking for like how big is the market size you're going into and using that to raise your funds. And like, we've seen it, no one else had done it. So somehow over the entire existence of like SSI and decentralized ID, no one bothered to do a market sizing or not a comprehensive one at least. And certainly not one that we could find that wasn't behind a pay wall, which as a startup, we are probably not kind of paying thousands of pounds into Gartner to go and figure that stuff out.
So instead what we had at the time was a narrative. So we had the idea of kind of just one ecosystem, one that we picked that was obviously massive, cuz startups love big numbers, but also then kind of had this narrative around, like that's just one or one of a hundred or thousands of ecosystems. So we picked the us credit bureau market one because it's massive, but two also, because it's a nine, it's sorry, an industry which is reusing people's data, selling it on mass and deriving massive value from it. And obviously with the narrative of, there are hundreds of thousands of these made for quite a good narrative for fundraising, but where did we get to? So where did we actually get to when we kind of went back to this analysis because originally like the market sizing, sorry, the, the narrative that we had worked out, we raised, we raised well, but we still kind of put a pin in list to kind of go back and fix.
And this is roughly where we got to headline number, big shouty number that we were kind of going fundraise against now. And there's a caveat at the end of this, which is like, the Matthias is pretty like back of a napkin, but it's a start and we're hoping that other people will kind of work with us to go and refine that down to where it should be, whether that's up or down for where it's right now. But what's that made of, so on the left hand side, you've got more kind of traditional individual identity. So obviously that's mostly kind of what is being discussed like across the, the conference here. So looking at things like passport, driving licenses, KYC, all that kind of stuff, but there's also kind of this other SSI stuff. So when people are looking at SSI, typically they go down a rabbit hole of like, it has to be individuals.
It has to be kind of high assurance use cases or data. And actually there's a whole of the world of, of, of kind of industries or use cases that could be useful. So example that big examples of this are digital corporate identity or IOT or even lower assurance personal data. So what we did as well as kind of looking at kind of the big number on the left hand side, which we, we took from a couple of reports was we went looking at kind of other areas that this could be useful in and looking at kind of numbers that are already existing, but trying to apply a factor of where we think kind of SSI will take a claim on those revenues or that market size. So kind of going across these again, like digital corporate identity is being really heavily driven by the likes of gly now who are issuing virtual legal entity identifiers to companies.
And the whole idea here is that it'll drastically simplify down kind of corporate due diligence M and a onboarding, all that kind of stuff. So we've kind of like just taken a factor, whether that's right or wrong. Again, we're welcome to being challenging, kind of iterators upon then going into stuff like OT. So a lot of IOT at the moment is just very much treated as looking at feeding lots of data into something like a big data platform doing analytics cost top of it, but you also then have things being certified. So for example, containerships or containers moving around the world and having to be certified in terms of when they've docked, if they're perishable, if there are perishable goods inside, if a temperature in a kind of container with potable goods ever kind of dips below a certain temperature or above a certain temperature, and those are things that are kind of important.
This isn't just a kind of a data point that's okay to flow through without any Providence. You really need to know where this comes from. And I think that's where kind of SSI may come into this. And you're starting to see that already with some of the partners that we have on the network. And then on the right hand side is, is something that I hope will kind of come around. So even lower personal, sorry, lower assurance, personal data. So things like receipts where actually having them in a digital kind of credential format would be a lot better than either paper, which you lose or emails, which you delete or forget to kind of keep. And so I think there's a, a huge market there as well, which is not very, kind of not your traditional passports, driving license, KYC kind of stuff, but it still kind of will have material use.
And then we're into kind of again, supply chain tracking metaverse and, and accommodate the kind, kind of the right hand side is a bit that I'm, I'm really passionate about. So if we start the left, you've got kind of certificates for like supply chains. Actually some of our partners do this now, and they're looking specifically, it's a, the entire supply chain for pharmaceuticals where every single company needs to be certified to a certain degree and they need to be able to prove that to each other and also all the way down the chain. So I think that's gonna be an area where we put it at 5%. It realistically could be a lot higher. Obviously topic of the moment is, is the metaverse. This is actually one that we were kind of caught by surprise on. So one of the examples that was given was in a metaverse scenario, if you have someone using an avatar and with deep fakes around, actually it suddenly becomes really important that if, if it's a publicly known individual, someone famous, they need to prove it's really them who was doing this.
One of the examples they gave was a kind of CEO or C-suite of a company doing an, an address to, to shareholders in a metaverse scenario, and really needing to prove that they are who they say they are. And that's kind of gonna gonna be kind of become more of a theme. So we've also heard from loads of gaming companies that they're starting to look at portability just between games and metaverse without necessarily the trust, but still that kind of that ownership and that possibility. And just to kind of go back to it, the right hand side is kind of the, the area that we're most excited about. So we're we're as a network we're public permissionless, which means that anyone can build on us. We're entirely industry use case agnostic. But I think what's really exciting for us is when you start combining this data in a way that you historically never did before, we're kind of looking for those use cases that are gonna come as a result.
And the kind of exciting stuff for us is one, the impact from SSI is huge. Like it's a hundred percent of that, whatever that market size is, but that market potentially is completely unknown. We dunno what that's gonna be. And I think that's, so that kind of number that I had before suddenly is like maybe a minimum, because we've got this entire like area of industry or industries that we just don't know and don't exist yet maybe, but let's dive deeper onto the metaverse stuff. So going into like web and web three metaverse examples. So this is, this is probably one of the ones that we think will come around. Certainly in the next five years, there's been a lot of pressure, both kind of in the us, and now in Europe, around things like the travel rule, there's been recent regulations in, in Europe, kind of coming out where there will be rules around unhosted wallets, so that are on custodial wallets.
So that basically means any kind of application that is even if you hold your own keys, you're suddenly being held to a kind of higher level of, of yeah. A higher level and also the DD five protocol having to enforce that as well. So I think what, what we're expecting is actually having a mix of like SSI and defi kind of combining so that you're now meeting those regulations, but without whilst kind of minimizing the amount of privacy that you're leaking out as you, as you do it. So I won't kind of go through this as see a few people taking pictures, but I think all of this is, is online and, and can be cut a look through another example would be peer to peer payments. So right now, anyone who is doing this in fear terms would be using something like an MPAA Venmo or, or kind of others, and being able to kind of move that data kind of move payments around, but it's always kind of payments tied to an identity.
And your kind of user experience is built around paying someone. And right now in, in kind of crypto, if you are paying someone, you're basically just going address to address, which means that any time that you're looking to pay someone, even if you paid them 15 times beforehand, you're typically still checking that wallet or address belongs to them or is related to them. And there was a great example recently where they got this massively wrong, which was a network was shifting funds around between kind of a user and treasury and someone fat fingered, the address. And now the funds are just locked forever and they can't get them back disappeared for anyone who's interested. If you look up the genome network and kind of what happened there, that was effectively kind of the loss that they had. And it was significant into the hundreds of millions, I think maybe maybe low, maybe tens, but the outcome is still the same, like a huge loss of funds for basically just bad user experience.
And ultimately we, we see that kind of SSI can be combined with kind of defi and in these payments just to enable kind of using the, or creating a user experience where payments are tied to identity, but in a very usable way. And again, it just, it reduces kind of scamming. It reduces just mistakes, like fat fingering. And this was kind of the one that I mentioned before. So SSI for gaming. So really being able to pour experience avatars all this stuff across games. It, and it really wasn't when we started engaging and kind of going out to customers' clients, all that kinda stuff. This was not the one that we thought would get the most engagement. We thought this would be really low down on people's priorities, but there's been a really big shift of, we wanna own like, especially create kind of created content where someone is creating avatars, they're creating skins and they wanna take ownership of that and port it between multiple games.
So that's become a massive, massive thing. And we know at least two or three companies, that's starting to look directly out this and solving it for the other clients. So I'm really that's. This is one of the ones that I'm really excited to kind of see coming around. So that was extremely quick, but mostly with, with the focus on kind of answer any questions and, and kind of take it through. And the report is up on our website and here is that caveat, which is really the, the numbers that we did, like will stand behind them, but we've kind of caveated them with, they are rough. And if anyone is willing to kind of help us get to better numbers, we'd love to hear from you because what we've found so far is everything is behind a pay wall, or it's not been locked out for, for a long, long time. So yeah, more than happy to answer any questions. If there are any.

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