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Created by - Digitalatto Academy

Blockchain Identity Management- Boon or Bane?

Cybersecurity, especially identity theft has become an urgent issue around the world. Resolving is most important for obvious reasons. And given the availability of blockchain today,what is the better way we could have hoped? Blockchain technology has the potential to better and more securely manage and validate user identities and credentials. But you might ask why it's a blockchain. This is because we do not want incidents where personal data is hacked. Technologies like the blockchain give people the right to control their data, the right to have a self-sovereign identity that they control. The blockchain will allow users to manage their identities and be more proactive in managing and sharing their identities as needed. The blockchain-based identity management concept also applies to the following general phrase: "The best way to protect your data is not to collect it in the first place." This is because traditionally central servers collect data and store prone databases. It is a single point of failure and can be hacked. You can think of it as the perfect honeypot for cyber attacks. Even if not hacked, it is certainly used for monetary purposes by the same centralized organization that sells data without your permission to generate high annual profits. Facebook andGoogle are classic examples of such data monetization but they are not the only ones in this business. On the other hand, blockchains are based on the fundamental tenant of not collecting the data or distributing the data in ways that it becomes impossible to attack them considering there is no single point of failure or the involvement of a central system. Most identity management systems that are being developed via the power of blockchain have this basic tenant as their departure thereby making it more difficult for unauthorized entities to exploit it or monetize it in one way or the other.  Fundamentally, blockchain-based identity management solutions put control of personal identity data back in the hands of end-users.  And when the engagement of data, like identity, happens with blockchain systems, the following benefits are natural to emerge: Reduce or eliminate redundant compliance steps Better security of end-users Better end-user experience Being able to meet global identity/privacy requirements  While there is no doubt, KYC and identity management are one of the biggest use-cases for blockchain technology. However, this is still in the very early stages. That doesn't mean it's useless, you'll never see the morning light. We still have time, and we need to do more to solve this multi-billion dollar global problem with digital identities before it becomes widespread.  However, some problems cannot be solved by blockchain technology in the field of ID management. Standardization Demographic restrictions Synthetic ID Issues  Despite these limitations, they are better every day than today's traditional single point of failure systems. For those who don't know, over 20 digital identity platforms are working to make the solution the best. Finally, while it is certain that many countries will switch to blockchain-based identity management solutions in the future, some will resist changes as they develop their own centralized honeypot-like systems. An example of such a country is India, and it's interesting to see why.  Now it's up to you to decide if blockchain is a digital identity management solution.

Published - Tue, 15 Mar 2022