European Blockchain Service Infrastructure (EBSI) and European digital identity : a public sector overreach or a valuable framework for the private sector’s next phase of digital transformation? : a critical assessment from an interdisciplinary perspective

Abstract

This dissertation explores opportunities and risks associated with the European Digital Identity Framework (EUDI Framework), built upon the European Blockchain Services Infrastructure (EBSI), from perspective of the private sector’s digital transformation. The research is motivated by challenges posed by the absence of decentralized digital identities and credentials in the current Internet, forcing the private sector to utilize complex Identity and Access Management (IAM) solutions, depend on large technology corporations, and operate costly and risky processes for handling Personally Identifiable Information (PII). Through interdisciplinary mixed methods research, based on exploratory interviews and a survey among digital transformation experts, this dissertation identifies several key issues: a) Lack of awareness and knowledge about EUDI Framework and EBSI, b) Complexity of current Web 2.0-based IAM solutions and dependence on large technology corporations, c) Trust-issues regarding identities, events, and data, especially when integrating Artificial Intelligence (AI), digital twins and Internet-of-Things (IoT) devices amid growing cybersecurity demands, d) Concerns that public-sector-driven solutions may stifle innovation and increase costs. Despite these concerns, the research revealed that the EUDI Framework based on EBSI has potential to support the next phase of digital transformation, provided infrastructure and applications align with the EU’s Next Generation Internet (NGI) visions of open-source-based, privacy-respecting and globally interoperable solutions. While moving from beta-testing and piloting closer to rolling-out EUDI Wallets, signs of disillusionment are noticed, raising questions about the commitment to SSI and blockchain, particularly as federated identity solutions gain renewed interest. In parallel, the ongoing rebranding of EBSI to ‘Europeum’ and its transition from management by EBP to an ‘Europeum EDIC’, adds to uncertainties about future direction and funding, potentially having negative impact on private sector engagement. This dissertation closes with research ideas and recommendations addressing some of these challenges.