Hyperledger Indy in Blockchain

In order to provide self-sovereign identification, the Hyperledger foundation created the Hyperledger Indy blockchain network. This network was created specifically for decentralized digital identity management. The platform offers several reusable components that are used to build digital identities for entities, along with tools and libraries. Users can use these IDs in any other application because Hyperledger keeps them on its openly accessible distributed ledger. 

What is Hyperledger Indy?

Hyperledger Indy is an open-source, decentralized identity management platform for individuals and organizations to have complete control over their digital identities. It provides a secure and scalable infrastructure to manage and store decentralized identity information, enabling the creation of self-sovereign identities (SSI) that can be used across various applications and services. Indy uses blockchain technology and cryptographic algorithms to ensure the privacy and security of identity information. 

• The Hyperledger Indy blockchain is both public and permissioned. 
• In Indy, users must have permission to write information to the blockchain, but not to read information from it. 
• It should be emphasized that despite the fact that Indy is a public blockchain, not all user information is recorded there.
• Private information and private keys are not stored on the network.

Why Do You Need Hyperledger Indy?

• Centralized Identity Management Limitations: Currently, individuals and organizations rely on centralized identity management systems, which can be vulnerable to data breaches and lack of control over personal information.
• Lack of Privacy: Traditional identity management systems often collect and store vast amounts of personal data, putting individuals’ privacy at risk.
• Interoperability Issues: Different identity management systems often use different standards and protocols, leading to interoperability issues and difficulties in exchanging data between systems.
• Self-Sovereign Identity: With Indy, people, and organizations can manage their digital identities in a safe, decentralized manner, providing them more control over their privacy and personal data.
• Blockchain Technology: Indy leverages blockchain technology to create a secure and transparent identity management system that is tamper-proof and resistant to tampering.
• Increased Trust: Indy’s decentralized identity management system can increase trust between individuals and organizations, enabling secure and efficient transactions and data sharing.
• User-centric identity: This enables the user to control what information will be shared and it was also limited to the identity register that can revoke access anytime they want.
• No global identity: In centralized systems, there is no global record system so one has to submit the same documents every time one applies for any of the documents like PAN, driving license, etc. This can be very time-consuming and makes the process cumbersome.
• Lack of control: In centralized systems, users don’t have control over the system. The information will be used according to the authority’s needs. 

Hyperledger Indy Consensus Algorithms

Hyperledger Indy uses the Byzantine Fault Tolerant (BFT) consensus algorithm, specifically the Plenum consensus algorithm. BFT algorithms are designed to ensure consensus in a network even in the presence of unreliable or faulty nodes.

The Plenum consensus algorithm used by Indy is a modified version of the PBFT consensus algorithm, optimized for large-scale, decentralized networks. In the Plenum consensus algorithm-

•  A designated set of nodes, called Replicas, are responsible for processing transactions and maintaining the state of the ledger.
•  Transactions are validated by a quorum of Replicas, ensuring that consensus is reached even if some Replicas are unreliable or unavailable.
•  This provides high levels of reliability and fault tolerance, making it well-suited for large-scale identity management systems.

Features of Hyperledger Indy

• Decentralized Identity Management: With the aid of Indy, people, and organizations can independently and decentralized manage their digital identities.
• Privacy-Preserving: Indy uses cryptographic algorithms and blockchain technology to protect the privacy of identity information and ensure secure data sharing.
• Interoperability: Indy is designed to be interoperable with other blockchain networks and identity management systems, enabling seamless integration and data exchange.
• Scalability: Indy’s architecture is designed to scale to meet the demands of large-scale identity management systems.
• Modular: Indy provides a modular architecture, allowing developers to choose the components and tools that best meet their needs.
• Open-Source: Indy is an open-source platform, with a growing community of developers and users who contribute to its development and evolution.
• Zero-knowledge proofs: With the help of zero-knowledge proof one can disclose only the information needed without anything else to prove credentials.
• Peer-to-peer connection: In Hyperledger Indy, any communication would happen between two peers. 
• Identity correlation-resistant: Hyperledger Indy is identity correlation-resistant which means that there is no way for the platform to connect two IDs or have two similar identifications in the ledger.
• Self-sovereignty: Hyperledger Indy stores identities like cryptographic accumulators, public keys, proof of existence, etc on the distributed ledger.

Modular Architecture of Hyperledger Indy 

Hyperledger Indy has a modular architecture that is comprised of several key components, including:

1. Identity Wallet: A secure software application that allows individuals and organizations to manage their digital identities.

2. DID (Decentralized Identifier) Method: A protocol that enables the creation and management of decentralized identifiers (DIDs) that represent individuals and organizations on the network.

3. DID Resolver: A service that resolves DIDs and retrieves information about the associated identity from the network.

4. Verifiable Credentials: Digital representations of real-world credentials (e.g. degrees, licenses, etc.) that are verified and signed by a trusted source.

5. VC Issuer: An application or service that issues verifiable credentials.

6. VC Holder: An application or service that stores and uses verifiable credentials.

7. Ledger: A secure and tamper-proof database that stores identity information and transactions on the network.

8. Nodes: Nodes in Hyperledger Indy can be classified as full nodes, master nodes, and nodes. 

• Full nodes: The client that operates on the network and maintains a full copy of the ledger is a full node.
• Master nodes: These are responsible for decentralized governance.
• Nodes: A device that performs transactions on the blockchain is a node. 

9. Agent: Hyperledger Indy agents can come in many varieties. They can be quite simple and static and they can also be cloud-based and complex. 

10. State and Storage: The state of the Hyperledger Indy network is maintained by Patricia Trie. It is a combination of Merkle Tree and Radix Trie. The storage system is implemented with leveldb as it offers ordered mapping and implementation of value/ key database. 

These components work together to provide a secure and decentralized identity management platform that enables individuals and organizations to have complete control over their digital identities.

Application of Hyperledger Indy

Hyperledger Indy has a wide range of potential applications, including:

• Digital Identity: Indy provides a secure and decentralized infrastructure for individuals and organizations to manage their digital identities and store their personal information.
• Supply Chain: Indy can be used to verify the authenticity and origin of goods and products in supply chain management, increasing transparency and reducing fraud.
• Healthcare: Indy can be used to securely store and manage sensitive healthcare information, enabling secure data sharing and improving patient outcomes.
• Finance: Indy can be used to verify identities and manage sensitive financial information, improving security and reducing fraud in the financial sector.
• Government: Indy can be used to create a secure and decentralized national identity system, enabling secure and efficient government services and reducing fraud.
• Education: Indy can be used to verify and securely store educational credentials, enabling secure and efficient verification of educational qualifications.
• Real Estate: Indy can be used to verify identities and manage property transactions, improving security and reducing fraud in the real estate sector.

Benefits of Hyperledger Indy

Below are some of the benefits of Hyperledger Indy:

• Transparency: The information on the ledger is encrypted and visible to everyone.
• Control: Users in Hyperledger Indy will have full control over their identities.
• Existence: All the users in Hyperledger Indy will have full independent existence on the ledger.
• Protection: The platform will protect user rights all the time.
• Longevity: The user identities will stay on the ledger as long as the user wants. So, users can delete their identities if they want.
• Portability: Users have also an option to transport their identities to other devices.
• Minimization: Disclosure of any kind of documentation comes with heavy minimization.

Limitation of Hyperledger Indy

Hyperledger Indy has several limitations, including:

• Adoption: Hyperledger Indy is still a relatively new platform, and its adoption has been slow. The platform requires widespread adoption in order to realize its full potential and provide real-world benefits.
• Scalability: The current scalability of the platform is limited, and there is a need for further improvement in order to handle a large number of users and transactions.
• Complexity: The technical complexity of the platform may be a barrier for some users, making it difficult to integrate with existing systems and workflows.
• Interoperability: Hyperledger Indy is designed to work with other Hyperledger projects, but it may not be compatible with other blockchain platforms and technologies, leading to interoperability challenges.
• Regulation: The regulatory landscape for decentralized digital identity solutions is still evolving, and there may be limitations on the use of Hyperledger Indy in certain jurisdictions.