We sat in on the event organised by the SFA and Sumsub to understand more about developments around DIDs and Digital Identity 3.0.
Unravelling the challenges of digital identities was at the top of the list at Sumsub’s latest multiverse event, held in collaboration with the Singapore Fintech Association on 16 October. We sat in for the key focus of the night, Digital Identity 3.0: Breakthrough or Bubble?, a panel discussion organised by Sumsub where the panellists explored the evolution of decentralised digital identities (DID) within Web3, and its potential as a public good.
Digital Identity 3.0: Breakthrough or Bubble
- Reuben Lim, CEO, Singapore Fintech Association
- Andrew Novoselsky, Chief Product Officer, Sumsub
- Julia Chin, Chief Regulatory Affairs Officer, xcube
- Chris Ngoi, Director of Financial Services (FinTech and Ventures), KPMG
Lim kicked off the discussion by tracing the journey of digital identity across Web1, Web2, and Web3, identifying the current technology and regulatory frameworks shaping DIDs. Novoselsky emphasised the importance of interoperability and standardisation, citing Sumsub’s goal of aggregating diverse identity documents to simplify digital verification processes across jurisdictions.
The discussion then explored the role of government and private companies in shaping the current state of digital identities. While Novoselsky acknowledged that governments remain the primary document issuers, he stressed that true interoperability requires the collaboration of public and private entities.
Chin noted the substantial political and infrastructural effort needed to make DID widely compatible, especially in APAC, to which Ngoi pointed out a shift in consumer expectations around privacy, which underscores a need for digital identities that users own and control — a departure from Web2 models, where free services often trade user data for advertising revenue.
Lim then questioned whether one’s digital identity could be monetised, and whether people could trust governments to safeguard it. Novoselsky pointed out that in Singapore, citizens are generally willing to trust government-managed digital identity systems thanks to robust standardisation. However, he likened DID’s role in Web3 to internet infrastructure — largely invisible but crucial to functionality. Ngoi then suggested that generative AI and deepfake technology may redefine digital identity, increasing the demand for trust and verification mechanisms.
Addressing the practical future of DID, the panel agreed that smaller, verifiable data sets could offer more secure, decentralised solutions than traditional large-scale centralised systems. While DIDs and digital identity need not be mutually exclusive, the ability of blockchain-based identities to advance cross-border regulatory standards is proven, as evidenced by blockchain-based COVID passes issued during the pandemic.
Who should the responsibility for building trustworthy DIDs go to? Chin suggested that public-private partnerships might be essential, especially in regions with less-developed ID systems, while Ngoi foresaw digital wallets and identity verification services becoming commonplace, with revenue opportunities centred on issuers, verifiers, and guardians of digital identities.
Chin concluded that future identity solutions would likely involve both DID and digital ID frameworks, where value could accrue to those who provide and protect verification.
