Blockchain-Based Decentralized Digital Self-Sovereign Identity Wallet for Secure Transaction

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Blockchain-Based Decentralized Digital Self-Sovereign Identity Wallet for Secure Transaction
Md. Tarequl Islam1,*, Mostofa Kamal Nasir1, Md. Mahedi Hasan2, Mohammad Gazi Golam Faruque3, Md. Selim Hossain4, Mir
Mohammad Azad3
1Department of Computer Science and Engineering, Mawlana Bhashani Science and Technology University, Tangail-1902, Bangladesh
2Department of Management and Information System, Prime University, Dhaka-1216, Bangladesh
3Department of Computer Science and Engineering, Khwaja Yunus Ali University, Enayetpur, Sirajganj-6751, Bangladesh
4Department of Computing and Information System, Daffodil International University, Dhaka-1207, Bangladesh
A R T I C L E I N F O
A B S T R A C T
Article history:
Received: 24 January, 2021
Accepted: 07 April, 2021
Online: 22 April, 2021
Blockchain (BC) as the widespread innovations in the 21st century has recognized itself to
be immutable, tamper-resistant, decentralize and secure. This emerging technology is used
as a functional technology for refining present technology and forming new applications for
its robustness and disintermediation. Decentralized Digital Self-Sovereign Identity (DDSSI)
is an identity mapped with individual identity information along with the user’s reputation
in the transaction. User’s information will be preserved in the decentralized cloud server
which will be controlled and maintained by the user. In this research work, we suggest a
Blockchain-centered DDSSI wallet to modernizes the existing identity management system
that will be used to identify as well as access control to provide validation and endorsement
of entities in a digital system. BC technology in this innovation ensures credible and safe
information in a transaction besides. Here, we use Bitcoin cryptocurrencies to generate
secure and unique DDSSI public key addresses by integrating the private key with the
random number for transferring and accepting information and a token-based system to
identify customer reputation.
Keywords:
Decentralized identifier
Distributed ledger
Identity management
Self-sovereign identity
User-controlled identity wallet
Verifiable credential
Zero-knowledge proof
1. Introduction
The Internet of Things (IoT) targets linking the whole thing
from human-being, households, organizations, and objects in the
real world. About 13.5 billion devices will be connected which
are equipped with actuating and sensing abilities [1]. This very
fast-growing innovation in the digital ecosystem with the
diversity of e-services, a variety of entities, billions of people,
trillions of devices need to have their own digital identities to be
easily identified and interrelate with each other in this virtual
world safely and securely. In the early decades, credentials as
username and password were commonly used for every individual
to do registration, access and manage in the different online
platform. Societal security address, National identification
number, passport number, and other authentication numbers were
used in the traditional approach. The systems have a centralized
databank for storing individual records [2]. The national identity
management systems experience security instabilities subject to
system downtime, attacking hackers and software up-gradation as
well as network traffic restrictions [3]. Identification,
authorization and authentication process of individuals must have
mechanisms to manage the information about individual
trustworthily. In recent times, the internet security issue is very
challenging and crucial. The secure access demand is a very
significant assurance for the information technology workforce.
As a result, individual information is often tampered with or
leaked. Therefore, society demands secure identity management.
With the benefits of BC technology, identity management offers
a decentralization feature without using any centralized database
or dedicated databank where information can be stored and
verified your identity on the internet. Our DDSSI ensures secure,
safe and authentic identity management with the integration of BC
technology. DDSSI is a unique perfect in which somebody,
organization, or entities completely preserves as well as panels
their data that is not administered by the federal system which can
never be unconcerned from the identity owner. The necessities of
the SSI are designated below:
ASTESJ
ISSN: 2415-6698
*Corresponding Author: Md. Tarequl Islam, Department of Computer Science and
Engineering, Mawlana Bhashani Science and Technology University, Tangail,
Bangladesh, Email: tareq.cse@gmail.com
Advances in Science, Technology and Engineering Systems Journal Vol. 6, No. 2, 977-983 (2021)
www.astesj.com
https://dx.doi.org/10.25046/aj0602112

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The owners of the Identity have full control over the data.
Data reliability, safety, and confidentiality are ensured by the
system where central authority is not mandatory for reliance.
It arranges for full transportability of the information where
owners can procedure their uniqueness documents in where they
want for example accessing an online service.
Changes to the data are clear, and clearness is continued by
the system [4]. BC proprietors are recognized by public-key
cryptography based on unique elucidations to develop the
conception of asymmetric cryptography to assign digital identity.
Several features of BC mark the technology appropriate for well-
organized and secure identity supervision: BC is a digital ledger
system that is immutable and transparent (based on permissions
or permission-less) where immutability and transparency are
important for identity management. Single point of catastrophe
and denial of service (DoS) attacks can be unaffected by BC
technology. BC offers a proficient application of public-key
cryptography and hashing which:
• can be persistent for digital identity control.
• provisions protect the integrity and validity of identity-
centered records.
• can be developed for third-party attestation of proceedings.
• supports simplifying agreement-oriented record delivery
with smart contracts. technology.
BC eradicates domination in identity management, as it is not
controlled by a central power that permits identity and records
amalgamation on a worldwide scale. BC chains inducements via
crypto-currencies that can be applied for convinced
responsibilities such as providing incentives to the participants for
data sharing.
2. Background Work
This section represents the advancement of identity
management systems: Centralized ID System, Integrated ID
system, and Self-sovereign ID system.
Figure 1: Advancement of the Identity Management System
2.1. Centralized Identity System (CIS)
A centralized identity system is the SILOED and the simplest
traditional identity system which was used in the early days of the
internet. Organization issues digital credentials that users can use
to access the services of the organization [5]. In this system, the
organization controls and stores the identity-related credential of
the user. Besides, to obtain service, the user needs separate
credentials for each system or organization. The trust association
between user and organization is built on a mutual secret, in most
circumstances, log-in username is typically linked with a
password. Recently, with the advancement of the Internet of
Things, every organization, and billions of people are now
connected over online, problems such as fraud are rising fast.
2.2. Integrated Identity System (IIS)
This integrated identity system incorporates a third-party
enterprise or confederation to act as a centrally controlled identity
provider between an organization and user [6], [7]. In IIS, the
identity provider issues digital credentials to the user to access the
services of the organization integrated with the identity provider.
IIS resolves two major issues, firstly, IIS provides seamless access
to the services of the organization where the liability of handling
identity as well as password confidentially by integrating an entity
who provides identity, which is a supplementary duty besides the
core commercial procedures and secondly, it eliminates the
encumbrance from account holders to accomplish numerous
identity-associated information for numerous entities by
proposing a Single-Sign-On (SSO) benefits. IIS works as a user
login to the identity provider portal, which then “federates” login
to the facility using numerous protocols such as OAuth, SAML,
or OpenID [8] Connect. Trust between the user and the identity
provider is preserved similarly to CIS.
2.3. Self-Sovereign Identity System (SIS)
SIS is a two-parties relationship identity system which is the
advancement of IIS, where no third entity coming between the
user and the organization [7]. SIS directly connects user and
organization as a peer. Users have full control over their
confidential and personal data by using a digital wallet. SIS wallet
stores all the trustworthy and private data on the system that is
maintained by the user. SIS introduces three significant entities
i.e. owners, issuers, and verifiers. Credentials are created and
issued to the owners by an issuer who gets credentials from an
issuer, stores it, and submits these credentials to the verifier to
verify once required [9]. The verifier accepts and authenticates
credentials claimed by owners.
2.4. Blockchain and Bitcoin
To keep pace with the era, there is no alternative way to the
development of technology. A trustworthy system is a key
objective to deal with profound data such as commercial
transactions with digital currencies even when it is very difficult
where no authentication nor assessment apparatuses are delivered.
This framework presented two essential thoughts[10]. The first
one is Bitcoin which is a virtual value of cryptocurrency without
depending on any centralized organization. Somewhat, the
currency is held collectively and securely by a distributed network
of the user that makes up an auditable and confirmable network.
The other concept, whose reputation has away even further than
the cryptocurrency itself, is BC. BC is the approach that consents
communications to be tested by a group of untrustworthy users. It
delivers a disseminated, immutable, apparent, confident and

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auditable register [11]. The BC can be accessed willingly and
entirely, permitting access to all contacts that have arisen since
the first transaction of the approach, and can be certified and
organized by any individual at any instance. The BC protocol
organizes data in a chain of blocks, where a set of Bitcoin
transaction details accomplished at certain instances are stored.
Every block is associated with the prior block, for developing a
chain. To support and operate with the BC, network peers have to
provide, the functionalities of storage, transmitting, mining and
wallet amenities [5] are delivered by network peers to control and
provision with the BC. BC is a digital ledger where a paired node
shares their data transacted between them. As it was earlier stated
that this approach is deliberated as the key contribution of Bitcoin
since it resolved a long-lifelong commercial issue known as the
dual-spend problem. The explanation anticipated by Bitcoin
comprised in looking for the consensus of the most mining nodes,
who affix the effective transactions to the BC. Although the BC
concept was initiated as a means for a cryptocurrency, it is not
obligatory to improve a cryptocurrency to practice BC and
construct the decentralized solicitations [12]. A BC is a chain of
time-stamped blocks that are connected by hashing address of
cryptocurrency and is the process by which data is distributed
among all nodes [13].
Table 1: Comparison of different types of an identity management system
PKI
Bitcoin
Based
Ethere
um
Based
Reputa
tion
Privacy
Year
Namecoin
2014
Certcoin
2014
Fromknecht
2014
Uport
2015
Soverin
2016
Jolocom
2016
Chainanchor
2016
NEXTLEAP
2017
Azouvi
2017
Axon
2017
Augot
2017
SCPKI
2017
DDSSI
2021
The Namecoin [14] used a Bitcoin-based BC system to
provide domain naming systems along with the IP address
identification. The next that has been modified by Namecoin,
Certcoin [15] forms decentralized validation system PKI. A paper
of decentralized PKI [16] proposed certcoin factors to certify the
preservation of identities where entities could not register
multiple times. Privacy-awareness in blockchain-based PKI [17]
scrutinizes privacy desires when planning decentralized PKI
methods and a blockchain-based PKI with concealment
consciousness has been signified here. According to a user system
for verified identities [18] amend the Bitcoin stack to construct an
identity management resolution and introduce a zero-knowledge
proof. Secure identity registration on distributed ledgers [19] are
other decentralized systems along with confidentiality preserving
landscapes using blind signatures. Besides, several setups and
researchers collaborating with technological experts are
concentrating on the improvement of identity methods such as
Evernym, Uport [8], [20], Shocard [21], Civic [22], Jolocom [23],
Bitnation [24] and Sovrin [8] to solve the digital identity problem.
We also propose PKI based DDSSI identity system where we use
a Bitcoin system along with the combination of privacy [25] and
reputation with the collaboration of BC [26].
3. Proposed Method
In this research, we suggest a DDSSI structure using a Bitcoin
cryptocurrency-based BC system. Unlike other identity systems,
our proposed method contains three parts: i) identity address ii)
user information and iii) reputation task of the user. Here, we use
bitcoin cryptocurrency to generate secure addresses by Elliptic
curve formula where a random number is integrated with a user
private key. In general, a pseudo-random number generator
generates a random number that is almost deterministic. Therefore,
we have proposed to ingrate private keys with a random number
to generate the secure address. The private key (pK) is very
important in cryptography. Here, we integrate a user-defined
private key and a random number to generate a digital
identification address (dSIaddress) for transferring and accepting
data by using SHA-256 hash function. In this system, the number
of bits is reduced and the security is enhanced compare to RSA
encryption [27]. User information (dSIinfo) is user-controlled data
as biometric data, images and other attribute inherited from
national identity (NID). User can set any other attribute belongs
to them those are encrypted by pK and are hashed to create dSIinfo
which is controlled and maintained by the user. User can update
their information at any time. uRtoken is used to detect user
behavior. Therefore, a user is individually recognized by the
amalgamation of their record, public key Bitcoin address, and
uRtoken.
Figure 2: Block diagram of DDSSI Wallet
An entity user may change their information even the address
dSIaddress may be updated which will not impact the user behavior
uRtoken. While updating the user information, a new hash value
to be generated and uRtoken will not be impacted and migrated to
the new one. Users may request to change their address. In this
case, the user information and token will be transferred to the new

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one. In both cases, the old information is stored in BC.
Sidestepping the attackers conceal their credentials by altering
their addresses. The amendment of the user's information must
require their aforementioned address which was delivered to
ensure the acceptability of the information alteration process.
Reputation is the behavior in which the aspect of identity in the
scheme is noted. uRtoken is one type of reputation system where
no one can alter the manipulator’s information to confirm the
protection of the individuality connected information. As soon as
manipulator comportment meets the execution situations, the
convention is inevitably completed with the data precisely written
or improved, confirming the safety of the associated information.
3.1. Algorithm
Input: a 𝜖 Private key, National Identification Number,
Random Number, user information
output: a gateway to access enterprise platform, validation and
mine transactions
• Generate Bitcoin address dSIaddress by using a random number
of generator and Private key (pK)
dSIaddress = SHA256(RANDOM_NUMBER, pK)
• Create user digital identity information by hashing and
encrypting user information and NID by the private key.
dSIinfo = SHA256(NIDinfo, entity information)
• Organize wallet to authenticate and authorization of access.
dSIwallet = (dSIinfo, dSIaddress, uRtoken) where uRtoken: ϵ
(Reputation of user)
Another way, uRtoken is cast-off to recognize the
manipulator’s character which is an object of the manipulator in a
physical world to distinctively recognize. The feature of uRtoken
is that the alteration of distinctiveness information will not
distress the manipulator’s character by avoiding the formation of
various identities, the system accomplishes uRtoken alteration
when a manipulator changes his uniqueness info.
Another way, uRtoken is cast-off to recognize the
manipulator’s character which is an object of the manipulator in a
physical world to distinctively recognize. The feature of uRtoken
is that the alteration of distinctiveness information will not
distress the manipulator’s character by avoiding the formation of
various identities, the system accomplishes uRtoken alteration
when a manipulator changes his uniqueness info.
An alternative form of uniqueness amendment is the
modification of manipulators’ Bitcoin-based public identity. Once
a manipulator desires to alter his Bitcoin-based public identity, the
scheme will also create a new address, and the ancient identity
will persist warehoused in the BC. Consequently, the
individuality information and uRtoken are lifted from the ancient
identity to the reorganized one, circumventing the invader’s hide
their uniqueness by changing their identity. It is well-known that
the alteration of a manipulator’s address entails the manipulator
deliver his ancient address of the ID to confirm the lawfulness of
the address amendment procedure. Once a manipulator always
behaves honestly and energetically, the manipulator’s reputation
should be high, and verse vice. As a result, the uRtoken score of
a manipulator replicates the manipulator performance variation
with time.
Figure 3: Identification of user behavior by reputation token.
The uRtoken is symbolic related to the repute parameters and
inducement responsibilities. In this paper, we recommend a new
perception uRtoken day that gathers the stricture apprehending
the entire number of days a manipulator grasps uRtoken. For
example, a manipulator has convinced figure of uRtoken at time
t, at that time the manipulator's uRtoken day upsurge by uRtoken
at time t+1. In other words, a manipulator's uRtokenday is a
snowballing function of time, and it rises quicker when the
manipulator has more uRtoken. When uRtoken of a manipulator
is positive, the manipulator's uRtokenday resolve reliably rises
gradually.
Figure 4: Changing the behavior of uRtoken concerning time.
Consequently, uRtokenday organizes not only replicate the
number of tokens that manipulators holding, but also imitate the
days that uRtoken holds the day. When the manipulator holds a
static uRtoken, and the manipulator's uRtokenday will increase
linearly. On the other hand, when the manipulator holds a smaller
amount of uRtoken primarily and gains more and more uRtoken
concerning time. As a result, the user's uRtokenday rises convexly.
In the same way, if the manipulator holds a greater volume of
uRtoken at first and loses it progressively. In this case, the
manipulator's uRtokenday will be increased concavely.

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• ΔuRtokeni = 0 which indicates that the amount of uRtoken
held by the manipulator i with time T remnants unaffected.
• ΔuRtokeni < 0 which represents that the quantity of uRtoken
held by the manipulator i with time T is diminished.
• ΔuRtokeni > 0 which represents that the quantity of uRtoken
held by the manipulator i with time T is improved.
Let us consider m manipulators in a particular scheme. In the
first stage, the manipulators are graded according to the rising
sequence, and we signify the manipulator address of the
manipulator with the minimum Si as S1, and so on. In the second
phase, we bounce 1 to manipulator 1, and 2 to manipulator 2, and
so on. Here, when the manipulators with a similar representative
deviation, the score will remain similar. In other arguments, if Si
= Si+1, then Rsi = Rsi+1 = i, which resultant the extreme value of
the status score k is a reduced amount of or equal to m.
Table 2: Ranking Score of uRtoken
Si (ascending)
S1
S2
……
Sm−1
Sm
Rsi
1
2
…….
k-1
k
Figure 5: Bitcoin address generation
3.2. Bitcoin Address Generation
The random numeral is a procedure through which an
expedient, produces an order of facts or signs that cannot be
sensibly forecast restored than by a haphazard casual. Random
number producers which is hardware random-number producers
which produce haphazard records as an occupation of present
charge of some physical environment quality. Produce haphazard
information within a min and max series that describe and
category the outcomes as well as to create a usual of one to ten
thousand arbitrarily chosen information. By integrating a private
key with a random number, we can generate a secure number. A
sequestered key, also recognized as an undisclosed key, is
adjustable in steganography that is cast-off with an algorithm to
encrypt and decrypt code. Clandestine secrets are only communal
with the key's producer, creating it extremely protected. Private
keys play an important role in symmetric cryptography,
asymmetric cryptography, and cryptocurrencies. The SHA is one
of a numeral of cryptographic hash functions. A cryptographic
botch is like a signature for a piece of information. If you would
compare two cliques of raw data, it is always restored to hash it
and equivalence of SHA256 principles. It is the fingerprints of the
information. Even if only one sign is altered the algorithm will
yield diverse hash value. SHA256 algorithm produces an almost-
unique, static size 256-bit hash. Hash is also known as a one-way
occupation. This type is appropriate for scrutiny truthfulness of
our data, contest hash verification, anti-tamper, digital autographs,
BC. If we generate a random number and add it to a user-defined
private key, then we pass it SHA256 hash-based algorithm to
generate DDSI number.
3.3 Elliptic curve along with bitcoin address
We can generate secure random number by programming
coding using java, C++ etc. Generating cryptographic
pseudorandom numbers, total number of combinations have been
found:
2(32*8) = 2256 = 115,792,089,237,316,195,423,570,985,008,687,
907,853,269,984,665,640,564,039,457,584, 007,913,129,639,
936 (78 digits or approximately 1077)
After generating the pseudorandom numbers, we have added the
private key as a password. As a result, we will get.
Random number = SHA256(SHA256(password)))
Password: selimtareq@csekyau-12. The 32 bytes signature
generating by cryptographic secure SHA256 algorithm that is
almost impossible to guess and decryption to the original number
in impossible. This omnidirectional algorithm generates HashA1
value that is always 256 bits in length.
By using elliptic curve cryptocurrency can be calculated: y2 = x3
+ ax + b. Elliptic curve assets:
• If a line crosses twofold themes P and Q, it crosses the third
point -R.
• If a line is a digression to the curve, an alternate point will be
crossed.
• The curve will be intersected by all vertical lines at an extent.
3.4. Calculation of BITCOIN Public Key
Elliptic curve (ECC) was developed by Neal Koblitz and
Victor Miller in 198 and used in Bitcoin or Litecoin
Cryptocurrencies. A 256-bits ECC key is more beneficial in terms
of security compared to RSA public key encryption of 3072 bits.
Therefore, processing power consumption is also very less for
using ECC. Ellipses are designed by quadratic curves (x2) where
the elliptic is cubic (x3).
Public Key Version Hash D =Version "00 " || HashD2: Hash
the Public Key Version Hash D value using the cryptographic
hash function SHA256. This omnidirectional Secure SHA256
algorithm generates 256 bits signatures. The Public Address
Compressed is the Public Key Checksum D value coded into a
Base58 value. The Public Key Compressed value can be made
public and can be transformed into QR cryptographs and can be
written on paper wallets.

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Koblitz curve using standard efficient cryptography tools
Parameter
Value
a, b
The ellipc arc is defined by the constant a and b, y2 = x3 + ax + b, a = 0, y2 = x3 + ax + b, b = 7
p
The finite number of elements is the prime number p. Fp is called the prime field of order p along with class modulo p,
where the p elements are denoted 0, ..., p - 1. This means prime number p should be used for all the finite field math
operations (better known as modulo operation), for example: y2 mod p = (x3 + ax + b) mod p. The output of the math
operation should never be bigger than the p value. p=2256 -232 -29 -28 -27 -26 -24 -1=2256 -232 -977
G
On the elliptic curve, the predetermined base spot (xG, yG).
By the equation, yG = (xG3 + 7 )1/2, we can obtain yG coordinate
Therefore, xG and yG are the first and last half of the coordinate as followings:
xG: 79BE667EF9DCBBAC55A06295CE870B07029BFCDB2DCE28D959F2815B16F81798
yG: 483ADA7726A3C4655DA4FBFC0E1108A8FD17B448A68554199C47D08FFB10D4B8
n
n is the prime number of basepoint. 32 bytes number in the series [1, n - 1] is a endorsed private key.
Thus the range of any 32 bytes number from 0x1 to 0xFFFFFFFF
FFFFFFFFFFFFFFFFFFFFFFFEBAAEDCE6AF48A03BBFD 25E8CD036 4140 is a valid private key.
h
The cofactor: 01
Figure 6: Generation of public key using elliptic curve approach.
4. Major Outcomes of DDSSI
There are lots of benefits to using this proposed identity
management system that can make the system is desirable for
every nation, organization and person to maintain secure and
timely manner transaction.
Existence: Each user must have a unique self-governing digital
existence in the DDSSI system.
Control: User acts as decisive experts who must have full control
over the data as well as their identities.
Access: Users must be able to access their identities effortlessly
without any overseer. They should be cognizant about any
alterations at each time that have been amended to all claims
correlated to their identities at each time.
Figure 7: Fundamental characteristics of DDSSI
Transparency: All the algorithms and systems that are being used
in the DDSSI wallet must be transparent. Therefore, each user can
monitor how they are controlled, reorganized and worked
accurately.
Minimization: Disclosure of information must be minimized and
provide data as minimal as necessary.
Persistence: Data must be retained unchanged even the system is
being upgraded or any changes made in the algorithm. User
identities must be perdurable until the user’s desire.
Portability: Each user can disseminate their identities and make
them usable once they need it even, they can dispel third-party
dependency. Similarly, the user can transmit the identity when they
need it.

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Interoperability: Identities must be adequate anyplace in the
sphere as serviceable as possible, the system would drop flexibility
without ensuring interoperability.
Protection: User rights acts as a key purpose and guideline
principle of an owner. The boundary of user rights must be stated
and protected.
Consent: Individual identity repositories may be stolen by the
intruder. Users must have a prior agreement for using their identity.
Apart from those properties we propose one further
requirement Non-repudiation to make any transaction trustworthy
between DDSSI owners. Therefore, one entity can’t throw away
the validity of a claim or action taken earlier. Based on the above
features we propose a typical architecture of DDSSI to provide a
decentralized secure and safe platform to store user’s identity
information and every smart transaction that happened by itself.
Compare to other approaches, it would be more beneficial as this
approach used reputation-based transaction management as a
digital signature of behavior by that users can define borders
within which they make the decision and outside of which they
negotiate with others as peers.
5. Conclusion
In every single moment, an enormous digital revolution is
experienced in the world. And now, the physical entity along with
digital instances is merging to form a single reality. Therefore, we
unquestionably need a new approach to manage all the digital
entities. Specifically, the approach should have privacy and
security in every circumstance. That’s why DDSSI shows light in
the way for this picture-perfect solution. In practice, the approach
offers rights and full control of user identity along with makes the
system manage it effortlessly. As we have used the immutable
decentralized BC with Bitcoin technology to maintain the system
safe, secure and fast. Therefore, in the coming days, we believe
that the proposal would be the best approach to make the system
decentralized.
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