Secured digital identity is one of the luxuries that blockchain affords, the digital identity encompasses an individual’s entire personal information such as educational information, work history, licenses, financial information, and health history to mention a few.
Digital identity serves a lot of purposes like authentication and improved access control. This makes it difficult for identity theft to occur. Hence, the need for wide adoption of digital identity is important.
Blockchain has the potential to significantly promote digital identity by increasing security, privacy, trust, and interoperability.
The immutability feature of blockchain ensures that the information entered into it cannot be altered.
Through the use of decentralized technology, blockchain ensures that individuals control their information and it’s available only to those with access to it.
This ultimately improves privacy and security. The easy verification of digital identity through the use of smart contracts or other automated means improves trust and security as well. When used for compliance purposes, organizations can be confident in their findings.
The interoperability of digital identity through the use of blockchain is another interesting feature that is promoting digital identity, this makes it easy to share identity with organizations while still maintaining privacy.
Blockchain technology can be used to protect against identity theft in several ways, some of which include the following:
Use of Decentralization Technology
The use of a decentralized digital identity rather than the centralized database that most organizations use ensures that issues like data breaches won’t be issues as the decentralized have fail-proof measures.
Also, the decentralized technology is not easily hacked into, which makes identity theft difficult.
This feature of blockchain as an immutable technology ensures that information cannot be altered in any form, and can be used to create verifiable digital identities that are resistant to manipulation and ultimately fraud.
Blockchain helps protect against identity theft by implementing security measures such as cryptographic digital signatures which identifies the owner of an identity. This prevents imposters from claiming identities that are not theirs.
This is the use of zero-knowledge proofs where only necessary information is revealed for verification purposes without giving off sensitive information. It goes a long way to help protect against identity theft.
Autonomy of Identity
The use of blockchain enables individuals to have control over their personal data and its management. This entails only those granted access can view their information. With reduced unauthorized access, the chances of identity theft decrease too.
Finally, the role of blockchain technology in promoting digital identity is enormous as the technology helps to protect against identity theft through improved security, increased privacy and trust, and reduction of risks such as hacking and other forms of cyberattack.
It would be a disservice to fail to mention that scalability and regulations could be a problem to the adoption of blockchain technology for digital identity. Also, the implementation process is complex and requires technicalities.
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