A Blockchain Self-Sovereign Identity for Open Banking Secured by the Customer’s Banking Cards

Abstract

Open finance is evolving and extending open banking. This creates a large context that implies a financial and identity data exchange paradigm, which faces challenges to balance customer experience, security, and the self-control over personal identity information. We propose Self-Sovereign Banking Identity (SSBI), a Blockchain-based self-sovereign identity (SSI) to secure private data sharing by utilizing trusted customer’s banking cards as a key storage and identity transaction-signing enclave. The design and implementation of the SSI framework is based on the Veramo SDK and Ethereum to overcome the limitation of signing curve availability on the current banking Java Cards needed for Hyperledger Indy. SSBI uses the elliptic curve SECP256K1 for transaction signing, which exists for several payment cards in the market. SSBI enables automated financial services and trust in the service provider communication. This work analyzes the flow and framework components, and evaluates the usability, integration, and performance in terms of throughput, latency, security, and complexity. Furthermore, the proposed approach is compared with related solutions. The presented prototype implementation is based on a test Ethereum network and signing transactions on the banking card. The preliminary results show that SSBI provides an effective solution for integrating the customer’s banking cards to secure open banking identity exchange. Furthermore, it allows the integration of several scenarios to support trusted open banking. The Blockchain layer settings need to be scaled and improved before real-world implementation.

Factors Affecting Trust and Acceptance for Blockchain Adoption in Digital Payment Systems: A Systematic Review

“…It is critical to understand the ever-changing financial technology landscape in the implementation of blockchain technology in digital payment systems [2,29,30]. Trust is crucial for mitigating perceived risks associated with technology adoption [12].…”

“…Although trust and acceptance are widely acknowledged as crucial, the prevailing literature considers them separately in technology adoption studies. Trust is looked at from a psychological perspective and considered a subjective belief [29] that is based on confidence [3], past experiences [30,31], and evidence [29]. At the same time, acceptance is more of a behavioural intention to use the technology [32,33].…”

A Blockchain-Enhanced Self-Sovereign Identity Platform for Corporate Resource Security

“…When compared with the existing studies in literature [7][8][9][10][11], the proposed novel BlockSSI-CRS platform distinguishes itself by empowering employee independence while ensuring data protection, addressing modern digital threats more effectively. By harnessing the power of blockchain, the platform guarantees a more transparent and traceable identity verification process, and integrates with corporate systems.…”

“…If any discrepancies arise or if the employee lacks the necessary permissions, access is denied. (7) Once access is granted, the system establishes a secure, encrypted connection between the employee's device and the company's database server. This ensures that the employee can interact with the database or other resources securely, even if they're accessing it from a remote location.…”

Special Issue on Security and Privacy in Blockchains and the IoT Volume II

“…Five papers therefore discuss other emerging use cases for blockchain technologies. For instance, Ahmed et al [7] introduce the concept of Self-Sovereign Banking Identity (SSBI), a blockchain-based self-sovereign identity system, to address challenges in open finance and open banking. In open finance, financial service providers are not only able to retrieve transactional details from bank customers but also have write access to such information.…”