Identity Management System (IDMS) refers to how users or individuals are identified and authorized to use organizational systems and services. Since traditional identity management and authentication systems rely heavily on a trusted central authority, they cannot mitigate the effects of single points of failure. As a decentralized and distributed public ledger in a peer-to-peer (P2P) network, Blockchain (BC) technology has garnered a considerable amount of attention in the field of IDMS in recent years. Through Self-Sovereign Identity (SSI), users can have full authority over their digital identity. Successful implementation of a BC-based IDMS can significantly increase the degree of privacy and security of a user's SSI. However, the integration of BC-based IMDS to provide a user with SSI is still an unorganized area of research in its early stages of development. This article presents an extensive literature review of state-of-the-art academic publications as well as commercial market offerings regarding the applicability of BC-based SSI solutions. It also provides a detailed preliminary regarding the building blocks of blockchain technology and a progressive roadmap of IDMS solutions. In order to develop an effective BC-based IDMS solution that focuses on securing a user's SSI, this article outline five essential components of a BC-based IDMS: authentication, integrity, privacy, trust, and simplicity. Furthermore, we perform a security analysis that outlines several types of adversarial threats that can cause potential damage to the BC-based IDMS. We identify and discuss associated issues and challenges by analyzing several notable BC-based IDMS solutions in academic literature. We also highlight potential research gaps and provide future research scope.INDEX TERMS Blockchain, peer-to-peer network, identity management system, self-sovereign identity, security.