Identity Management with Blockchain Technology Driven by DataNovember 17, 2018
Data completely drive the current day world. And blockchain technology in simplified terms is a distributed database which has the record of digital transactions that cannot be altered.
Every block in a blockchain is identified by a cryptographic signature. All of these blocks are further backlinked. Every block refers to the previous signature, and thus every chain is interlinked in this system.
Security, usability, and privacy are challenging. There are several systems in existence to maintain personal identity in the real world; however, these systems are rather imperfect. No clear system can authenticate personal identities accurately. The government issues identity documents like passports, driver’s license, and a range of documents. However, since there is no inter-governmental global entity overseeing the process authentication is indeed an issue.
This problem can be sorted by making use of blockchain technology. This system delivers a secure solution without the need for a trusted central authority. An identity is created on the blockchain. Thus it will be easier for individuals to manage them. Individuals also have greater control over who has their information in the blockchain and how they can access it.
Decentralized blockchain principle and identity management can be combined with creating a digital identity with a digital watermark that can be used for every online transaction. The organizations will be able to check the identity of every transaction in the real-time world, and therefore will be able to eliminate fraud.
As opposed to using usernames and passwords, the blockchain technology-based solution will store the identity of customers permitting them to share their data with the companies who will, in turn, be managing it in their terms.
There are several companies which are exclusively focusing on identity management solutions. The solutions are divided further into different categories. There are governance platforms like Bitnation who are concentrating on establishing world citizenship for establishing identity. This system is set to work without the limitations of geographical boundaries in a voluntary and decentralized manner. All they need to do is become a citizen of Bitnation by signing up. Similarly, several other companies are working collaboratively to develop decentralized identity management systems for use across the world.
The validation in most cases will be biometric systems, electronic signature identification, recording of transactions, and more. The core complication is about eliminating the risk of counterfeit identification.
Rather than making use of traditional verification methods, customers can get the approval using a simple App. This dApp can be customized to suit the requirement of individual businesses from XinFin using the XDC Protocol and the services rendered by their rich base of developers.