Advancing Identity Management with Blockchain Technology

Posted by MuBlockchain on February 9th, 2021

The blog post highlights the problem that today’s identity management systems are not sustainable enough. As a solution, it proposes considering blockchain app development for streamlining digital decentralized identity management.

 

Digital Identity Management | Challenges

Millions of people come online every day. They conduct various activities, ranging from researching an academic topic, shopping for new goods, dropping comments on social media sites, and even carrying out various financial transactions.

Many online purchases require individuals to reveal particular personal details before accessing services. For instance, users are often required to enter their sign-up/login information, i.e. financial and personal details, before financial transactions can be carried out on sites such as Amazon Pay, PayPal, and Google Wallet, among others.

Centralized Systems

Thus, it is stored on various internet databases any time a person discloses this information. As such, through these various channels, digital copies of the same person spring into being.

Inappropriate Consent Management

The majority of systems in place rely heavily on individual data collection without the owner’s knowledge, and third parties may in turn gain access to that data without the subject’s knowledge. Furthermore, without the permission of the subject, information stored in these online databases may be shared with third parties.

While this can often be done in the subject’s interest or service, such as suggesting relevant goods and services that the subject can check out, the fact that the consent of the person was not obtained and power is left in the hands of those who own the database does not alter.

Determining whether or not they want their information shared with other people, leaves the subject with little or no options.

Blockchain for Identity Management

Blockchain can be used to construct a network that protects the identity of people from theft and reduces fraudulent activities significantly. The technology can also help companies develop powerful blockchains that deal with the authentication and reconciliation problems faced in many industries. Also, it will give people the ability to create encrypted digital identities that will replace several usernames and passwords while providing more robust security features that will save valuable time and money for consumers and organizations. On the blockchain, individuals can also easily establish a self-sovereign identity.

A self-sovereign identity simply refers to an individual identity that is personally completely regulated and preserved by the person. Such an identity is difficult to steal from a person, and this deals with the problem of identity theft that is prevalent in the conventional identity management system.

The use of approved blockchains may also include a decentralized registration mechanism that means that an individual can obtain an identity that is not dependent on any centralized authority and thus can not be regulated or dealt with without the permission of the individual by any third party.

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MuBlockchain
Joined: October 27th, 2020
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