The prevalent methods of storing, accessing, and using personal identification documents have several loopholes and limitations.
Blockchain technology provides a revolutionary alternative that addresses these limitations effectively.
Personal identification documents are information that is an integral component of everything we do from banking, and education to getting jobs.
Sometimes, after we have given these organizations access to personal information we don’t know how they manage it and we don’t have control over that.
A data breach is another common occurrence with this uncontrolled access to personal identification documents.
Blockchain technology was initially thought to be a technology catering to just cryptocurrency however, we can see that it is way beyond that.
Blockchain technology stores information in a secure and decentralized manner that if it is used to store and access personal identification documents has the potential to unleash profound impacts and improve privacy, security, and control of personal identification documents.
Some of the possible impacts include the following:
Cryptography is used in blockchain and this will ensure that sensitive information will be secured as cryptography employs the use of hashing and digital signatures, making it accessible only to authorized personnels, effectively reducing fraud and improving the efficiency of identification verification.
Increased Privacy and Control
Individuals get to create their digital identity and set up smart contracts around it, making it accessible only to those to whom they give access and can control what they can do with the information made available to them.
This increased transparency can help individuals detect any unauthorized access or misuse of their personal information.
This is the ability to exchange or share information between different devices or software. The digital identity built on Blockchain would be designed in such a way that it exhibits interoperability.
This can make it easier for individuals to share their personal information with different organizations, without having to go through the process of manually sharing and verifying their information every time they share the information.
Flexible and Portable Identity
Using blockchain-based digital identity can give one flexibility as to whether one changes jobs or moves to a new country, the documents are in a globally accepted form. This reduces the need to constantly process these documents for any new move.
Identity Verification and Automation
Organizations can easily verify a document with an increased success rate, which will greatly reduce the risk of fraud.
For example, Banks and other financial institutions could use this when processing a loan application. Also, it can help organizations with automating the process effectively reducing their burden and improving their efficiency.
The administrative costs involved in keeping and managing central databases are quite hefty, using blockchain technology can be more cost-effective and time friendly, as it eliminates the need for intermediaries.
While all these impacts look juicy, it is worth noting that there is a long road before we can get there starting with adoption, and getting people to create their digital identity on blocks, then there are challenges like network speed and the regulatory policies are still evolving as well.
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