Identity in a digital world: A new chapter in the social contract

Summary

As digital technologies of the Fourth Industrial Revolution advance, our identities are increasingly digital, affecting access to products, services, and information. With the proliferation of digital services and internet-connected elements in daily life, individuals are losing control over their digital representation, and some lack digital identities entirely, leading to exclusion from digital life. This situation challenges the social contracts between individuals and institutions. Without action, digital identity could exacerbate the divide between the digital haves and have-nots, or leave most individuals without choice, trust, and rights online.

However, wisely managed digital identities could transform the future, providing billions with new economic, political, and social opportunities while ensuring digital safety, privacy, and human rights. This report explores ideas for achieving this better future, emphasizing the importance of placing individual value at the center.

Digital identities have evolved into complex webs of personal data, digital history, and algorithmic inferences. While they create value for businesses, governments, and individuals, there is a lack of shared principles, standards, and coordination among stakeholders. At the World Economic Forum’s Annual Meeting in Davos 2018, stakeholders committed to advancing a “good” future for digital identities.

Today, three main identity system archetypes exist: centralized (managed by institutions), federated (shared among multiple institutions), and decentralized (granting individuals greater control over their data). The decentralized model, though mostly in pilot stages, represents a future where individuals manage their own identity data.