Blockchain turns digital identity; genuine, irrefutable, immutable, and more secure

August 2, 2017

Blockchain is poised to revolutionize the way we do business.  In an increasingly digital society, digital identity is growing in importance and blockchain provides the technology to put security and trust into digital identity applications. Digital identities allow for the storage of a lot of personal information, but also provide a vital link for transfers of assets, whether they are human, animal, tangible or non-tangible etc.

Digital Identity

Imagine never having to worry about your digital security every again. It is a massive problem in the world. Blockchain technologies make tracking and managing digital identities both secure and efficient, resulting in seamless sign-on and reduced fraud. Be it banking, healthcare, national security, citizenship documentation or online retailing, identity authentication and authorization is a process intricately woven into commerce and culture worldwide.

Blockchain technology offers a solution to many digital identity issues, where identity can be uniquely authenticated in an irrefutable, immutable, and secure manner. Current methods use problematic password-based systems of shared secrets exchanged and stored on insecure systems. Blockchain-based authentication systems are based on irrefutable identity verification using digital signatures based on public key cryptography. In blockchain identity authentication, the only check performed is whether or not the transaction was signed by the correct private key. It is inferred that whoever has access to the private key is the owner and the exact identity of the owner is deemed irrelevant.

Promising Digital Identity Applications:

  •  Digital identities for property buyers, augmented with a personal credit score. This would include elements such as income, personal loan repayment history, social media profile and more. A smart contract containing the full details of the property, together with the buyer’s digital identity can be put up for auction on blockchain for potential financiers. The buyer chooses the best offer and the financier gets a reward for taking the risk. Only those elements necessary to judge the creditworthiness will be disclosed before the offer is accepted.
  • Doing most of our shopping online, we may demonstrate our trustfulness with a Know Your Customer (KYC)/reputation management system. This could enrich classical identification data by much more qualitative and quantitative information (client endorsements, transaction history etc.), stored in a blockchain-based public profile.
  •      Digital identity in the food chain, where the origins and safety no longer get verified by an official middleman but by participants in the chain. A simple barcode, and blockchain information linked to it, will thus disclose the complete and verified trajectory of the product.

Blockchain is set to change the way the world does business. Secure and trusted digital identities will play a crucial role.

Blockchain Identity Use Cases

Blockchain technology can be applied to identity applications in the following areas:

  • Digital Identities
  • Passports
  • E-Residency
  • Birth Certificates
  • Wedding Certificates
  • IDs
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