Blockchain Identity Solutions: Empowering Digital Identity Management

Reverbtime Magazine -
  • 0
  • 95
Scroll Down For More

There were older and less secure identity management processes and those led to many issues such as large-scale data hacks, data breaches, and sensitive data leaks. But with time, some regulations changed the way personal data was collected, stored, shared, and used.

Blockchain Identity Management Technology

Blockchain identity management technology increases effectiveness, accuracy of data, accessibility, and security. Thus, it helps to solve all the security and data breach issues. Blockchain identity management offers an affordable and secure way to manage digital identities and because of this, it is getting very famous.

Blockchain identity solutions use custom blockchain development and users store all of their ID information and credentials in a well-organized wallet application. At this point, blockchain technology helps to make this information verifiable immediately and there will be no need to contact the user. With ID wallets users get complete control over their personal information.

Defining Identity Management

Identity management comprises technologies, policies, and processes that allow only authorized people to access the services, data, or technology resources. Identity management technologies and systems are changing and adding different features to improve overall security and the user experience.

Issues in Current Digital Identity Management

When we talk about digital identity, it is the whole information about an organization or a person that is present online. In a digital identity, there are different types of data including an ID number, search history, usernames, and buying history.

All of the digital identities of people are connected via different applications, services, and devices. Also, these digital identities use federated and centralized identity systems. Organizations gather private and sensitive data of users and store them and that can lead to business risks. Apart from this, digital identity management has the following issues:

With federated and centralized identity systems, there are more chances of data breaches and also identity theft.

When there are centralized identity systems, whenever a person signs up for a new application or website, it requires them to create another account and password, leading to a bad user experience.

Identity theft is also one of the major issues of the current digital identity management that has led to billions of financial losses every year.

It is often not possible for people to get control over their personally identifiable information (PII). 

Benefits of Blockchain in Identity Management

One of the benefits of blockchain identity management is that these systems are tamper-resistant. This technology makes data about the identity of individuals auditable and verifiable within seconds. 

There is no third party involved in the sensitive information delivery or verification processes when organizations use blockchain identity solutions. With this, there is better security from identity theft or fraud as the data is stored by the users themselves in their identity wallet applications. Blockchain identity solutions also have many other benefits:

With blockchain technology, every system on the network has a ledger copy. This means that there needs to be the consent of the majority of computers to add any transaction blocks to the ledger.

In the blockchain system, the transactions are stored and processed with cryptography that ensures the utmost security.

Every person who is in the blockchain network can easily trace the transactions and verify data. Blockchain identity management ensures transparent and auditable information.

Conclusion

Identity management ensures that only the right and authorized people have access to sensitive data, technology resources, and services. Blockchain identity management offers more data security, reduces overall costs, prevents identity fraud, and enables faster verification. Thus, it resolves all security concerns.

Related Posts
Comments 0
Leave A Comment