In a groundbreaking move to revolutionize online identity management, China has introduced a cutting-edge blockchain-based real-name verification system, marking a significant stride in digital security without compromising user privacy.

Recent reports from reputable sources reveal that China, through its Blockchain-based Service Network (BSN) and the Ministry of Public Security’s First Research Institute, has launched the innovative Real-Name Decentralized Identifier (RealDID) system. This initiative aims to transform how internet users log into online platforms by eliminating the need to divulge personal information like phone numbers.

The RealDID system, as reported by South China Morning Post, involves a collaborative effort among key governmental bodies, including the National Development and Reform Commission and the National Data Administration. Anicert, a subsidiary of the research institute, spearheads the issuance, management, and verification of user identities through its Cyber Trusted Identity (CTID) system, already in use for verifying Chinese identities across various institutions.

The primary objective of this pioneering system is to eventually encompass all of China’s 1.4 billion citizens. Although the scaling process will be gradual, the initial phase aims to issue 5 million RealDIDs over the next year through carefully curated pilot projects.

This avant-garde RealDID system operates exclusively within China and is inaccessible to IP addresses outside the mainland. This approach mirrors BSN’s other projects, maintaining a strict bifurcated stance.

How does the RealDID system function?

Utilizing a public key infrastructure (PKI), users store their public cryptographic keys in a RealDID document on the Yanan Chain post-verification by the CTID system. This verification process involves a robust “three-factor process,” incorporating government ID, legal name, and facial recognition. Once verified, users can create multiple public-private key pairs, enabling login with an anonymized DID address across various platforms.

Importantly, this system empowers users to sign files, leaving a distinct watermark as proof of origin, while allowing the government access to user identities when necessary.

A critical aspect highlighted by the report is the separation of personal information storage between national regulatory bodies and companies. While the former retains personal data, companies do not have access to this information. This aligns with Chinese law, mandating online accounts to be linked to real-name identification, typically through a phone number.

The RealDID system stands as a formidable solution against the monopolization of data traffic by major internet platforms, aiming to mitigate data leaks. Yang Lin from the security ministry’s research institute emphasizes that privacy breaches often fuel profitable activities such as online scams and cybercrime, necessitating innovative measures.

BSN, an ambitious project launched in April 2020, seeks to create an extensive blockchain infrastructure platform. It integrates diverse blockchain technologies, including public, consortium, and private chains, fostering a more versatile approach to application development.

One of the key goals of BSN is global expansion, aiming to build an international network facilitating blockchain technology’s growth worldwide. This network is intended to support various applications, particularly in smart cities and the digital economy, enabling efficient development and operation of decentralized applications (dApps).

However, concerns regarding data privacy and security have emerged due to BSN’s ties with the Chinese government. International scrutiny surrounds potential government surveillance and control over data and transactions within the network.

In conclusion, China’s innovative RealDID system, integrated within the broader scope of BSN, represents a significant leap forward in the realm of online security and digital identity management. Its implementation showcases a remarkable step towards safeguarding user privacy while countering data breaches in the digital sphere. As this pioneering technology continues to evolve, its global impact and acceptance remain subjects of interest and scrutiny on the international stage.