Blockchain in Identity Verification Industry
Blockchain technology has proven in improving transparency and efficiency in the different business operations. It also has been seen in improving security. The major reason that we’re stuck in such predicament is due to the companies, service providers, and other organizations that actually rely on the central party for maintaining and managing our identities online.
Looking at the history of the digital identity verification & authentication, there has never been any method that gave us the choice to choose what information one must share on the internet. We completely relay our trust on to the third party that relays theirs on the central server that is susceptible to hacking.
Blockchain is your solution
As per the industry veterans and cybercrime experts, blockchain appears to have the potential of giving you control over your online identity, by not sabotaging your capability of transacting with an outside world. Such technology, when implemented rightly will help to bring this concept of the self-sovereign ID verification to life and giving users an option to share the right information required.
How does Will Blockchain help?
Trustworthy digital identification is “one main challenge that internet is facing ever since it came into existence. Moreover, digital IDs will raise questions about the main points of the failure & surveillance states if the IDs are made, stored or managed by the central authority.
Just creating the digital identity isn’t sufficient, there’re some specific properties needed for the digital identity in order to fulfill the potential and maximize the social impact. Blockchain systems reduce dependence on the third-party intermediaries as well as will survive disasters that may wipe out and compromise any centralized record-keeping solutions (that includes breaches.)
How Is Blockchain Effective in Identity Management?
Blockchain technology gives the right to the people to be in charge of the data that is to have the self-sovereign identity that they control. Blockchain provides people the complete control of their own identity so they will manage or share this proactively when required.
Even if it isn’t hacked, certainly it can be used by the same centralized firm for the monetary purposes and where they will sell your data without taking your permission to make hefty profits. Google and Facebook are two classic examples of the data monetization however they aren’t only ones in the business.
Blockchain Startups Changing Its Identity Management
Fundamentally, the blockchain identity management systems put total control of the personal identity data in the hands of the end users. When engagement of the data, such as identity, happens with the blockchain systems, the following benefits are quite natural to come up:
- Security of the end users
- Eliminate or reduce any redundant compliance steps
- Meet global identity and privacy needs
- High-end user experience
Some notable projects are listed here:
Civic aims to create a digital identity for everybody in a decentralized way. Such identities can be compliant with different rules of governments across the world (such as digital ID number). And all this without any actual data collection or storage is done by Civic company.
Civic makes use of blockchain solution to secure data. Such data is verified stringently by Civic and identity verifying partners then anchored and attested to a blockchain system in the un-decryptable data form. Such data is exchanged only between the requestor and user of that data just by using the Civic tokens.
In this way, you do not have to give away your data to different entities. Civic makes this simple and effortless for the users & identity requestors to check data as well as prevent identity theft as it is stored on blockchain technology in a form of the verifiable hash.
uPort is an identity management solution that is developed by prestigious blockchain company named ConsenSys. Their goal is to build a simple to use and self-sovereign ID for the individuals & businesses using the Ethereum’s blockchain.
They consider your phone as your extension and whenever you configure the uPort for the first time, it takes data from your phone with your permission & writes in the Ethereum’s smart contract that will later get shared by users when required. It doesn’t have any native token but it might be the high possibility in the future.