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.
