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The Government Services Report
Identity Hierarchy
The Prism Identity Hierarchy illustrates the six levels of identity: human, foundational, biographic, contextual, pseudonymous, and transactional.

The model shows each level radiating out from the human at the center of the hierarchy, representing how far removed a type of identity is from the carbon life form it represents. Crucially, while ascending the hierarchy, the human identity is carried forward from level to level. The same cannot be said from the top down. For each level to carry the assurance of a human being’s true identity, that identity must stem from levels before it. For example, biographical identity can only be fully trusted as belonging to the human claiming it when it is built on the foundational identity underneath it, which is bound to the human through biometrics.
But what does that foundational biometric binding look like in practice? It only requires two elements: a human and a government issuing authority. The government is the arbiter of the most authoritative and definitive identity data describing a document holder. But the credentials it issues, be they physical or digital, are still one step removed from the actual object of the identity (ie. the person it identifies). This becomes a serious problem when transacting over remote channels because the credentials and the information therein can be presented by impersonators by virtue of their transferability. By collecting and binding the credential holder’s biometrics to the foundational identity credentials issued by the government, the cornerstone of identity is created.
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That biometrically-bound foundational identity is the basis for the next two additive layers of the Hierarchy: biographical, based on what a person has done (where they have lived, what they have accomplished); and contextual, based on where they are and what they are doing now. These layers of the identity hierarchy build on the foundation of a government-vetted, real human identity to give permissions like driving vehicles or accessing online portals, and to enhance assurance that the correct human is linked to this permission.
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On the outer layers of the hierarchy, we see the privacy-enhancing and practical aspects of identity. Unlike the layers underneath, the pseudonymous layer doesn’t add data to build the identity up, but obscures what is there so that a person is only asserting the parts of their identity that they are required to complete a specific transaction. For age-restricted substances like alcohol or cannabis, or regulated services like gambling, pseudonymous identity represents the act of confirming you have permission to participate without having to share the actual information that proves it. Think of it as a government-certified checkmark that says, “This person can buy wine, trust us.”
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The outermost layer, transactional identity, represents access. This is the identity of keys and locks, passwords and login pages, payments and purchases. In digital spaces, we are most familiar with transactional identity because, as the outer layer of the hierarchy, the actions it represents can be performed without the deeper layers of identity. That is to say: transactions can be performed without trust, security, or privacy. While that might be the case when using knowledge-based authentication or security- ty tokens and passkeys that have no foundational element, when supported by the full identity hierarchy, transactional identity can be asserted with greater ease, benefit from stronger security, and be easily recovered.
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With the full spectrum of the Prism Identity Hierarchy behind it, as enabled by government organizations and the infrastructure supporting them, biometric digital identity can meet the extremely wide-ranging demands of this market.
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Various form factors have emerged to bring the potential of the full spectrum of the identity hierarchy to fruition. The most common iteration is a government-issued electronic or mobile ID, or a mobile driver's license (mDL), which places a biometrically bound, government-attested digital identity on a user’s smartphone. But recent innovations in biometric encoding technologies are giving rise to analog forms as well, like barcodes containing biometric templates, which can be printed on documents by issuers to add an element of biometric binding without requiring a mobile device. This type of innovation has powerful applications when it comes to including underserved populations in government services.
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These biometric digital identity technologies require participation from identity platform players, biometric core tech vendors, solutions providers, integrators, identity proofing and verification players, as well as organizations that provide the infrastructure for their development, integrity, and adoption—all of which are set for worldwide growth in the coming years.
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The Prism Project is powered by Acuity Market Intelligence (www.acuitymi.com), whose government services biometric digital identity market forecast indicates a Total Addressable Market of approximately $295 billion globally between 2024 and 2028, with Europe demonstrating the most potential. That’s powered by a potential 6.4 trillion transactions in that same period, with Asia Pacific generating half of that potential traffic. About 57% of those transactions are expected to materialize in the 2023 and 2028 timeframe, generating an actual $202.5 billion in global revenue (representing 69% of the Total Addressable Market) spread relatively evenly between North America, Europe, and Asia Pacific.
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Biometric digital Identity in government services is essential for the future of our digital civilization. Thanks to the role the government plays in creating a foundational identity and the ability of digital identity technologies, like those described in this report, to bind that identity to the human it describes, this sector will define how other markets can leverage transactional and pseudonymous user identity for their own digital experiences. By assuming its role as an arbiter of identity and collaborating with the Solutions Titans, Luminaries, Catalysts, and Pulsars highlighted in this report, government agencies can protect their citizens from fraud and cyber threats, enhance their own operations, and stimulate the broader economy.
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