How Influencial Is Blockchain In Identity Managements In The Digital Era?

Each of us has our identity, not just us, from something I'm typing out here to that even doesn’t exist has their kinda identifications for their existence in this so-called space. And we have to relate this with digital transformation, a Digital identity especially for a human is the keynote to denote one’s unique existence here. From a long gazette, we have now come to cut down paper works and use cloud storage, which is comparatively less but with a substantial amount of data.

Eventually, the traction over digital identities is buzzing that has now a status with global recognition. Identities as it calls themselves to be, denote one's existence in the real world, and that also explains their different attributes elaborating on their physical form. Through digital transformations happening worldwide, from data stored in the cloud and drives that ease data handling. And now, in no surprise Digital identity is rendered through blockchain, spruce casting one’s identity that is unique and accurate.

Let us explore if this transformation towards digital identities rendered through blockchain networks is effective. And in terms of long-term goals of accomplishing global desires, are these transitions help in the best way to support better data handling?

Identity - The Transformation That The World Is Looking Up To

One's identity is usually referred to by their name, height, weight, color, etc., where all of which constitute or define one's physical appearance. Driving licenses, school/college/office ID cards, electricity bills, voter ID, and many unique identity cards denoting the same purpose.

Later, the hit over digitization ignited the transformation of massive paperwork to a digitally enlightened infrastructure reducing wallet spaces, and this time it is comparatively more to store with less storage accumulation. There are digitized identity structures.

Classification of user data

Companies and organizations

Devices connected through the internet

Individuals data

This has helped a major part of the ecosystem. Let it be companies who collected sensitive information from users and stored them on a routine basis, eventually risking the creative business with the use of user privacy-centric regulations and the industries focused on corporate IT responsibilities. While these wouldn't contribute to understanding customers or driving product improvements. And this can be well achieved with stronger IT compatibilities in the right balance and prepositions.

The next comes IoT Devices. For about seven billion internet-connected devices, the numbers are constantly expected to grow and in the next three years, the scale shall increase to triple the time of this estimation. As most of the IoT technologies do not comprehend actual identity and access management capabilities, trusting them still hangs doubtful. These systems as they majorly drive to identify sensors, monitors, and devices and also manage access to sensitive and non-sensitive data in a secured system. Most leading IT hubs are comfortable in rendering IoT management systems and addressing these service gaps.

The final set of audiences are individuals whose identities are integral to the function of a society and economy. Having our identification is important and mandatory. In the process, we will also have to accept that not everyone carries a physical form of identification for different reasons. And at the same time, we also have to note that approximately 1.1 billion people do not own their identity for themselves - leaving 1/7th of the population vulnerable. This inability also constitutes jeopardizing one’s financial system, limiting freedom. Eventually, this also has its impact on people or individuals who have their official identification and also have situations that are not so encouraging. As data hacking and duplication are so common.

From there the upgrade in the tech industry seems like a very long step taken forward with the concept of Digital Identity. The intrusion of decentralization and its shift has brought in a complete revolution upside completely round. Unlike having different cards, one identity for every single query on you. DID (Digital ID) is uniquely rendered to perform systematically and maintain accuracy and security.

What Is Digital Identity (DID) And Its Emergence In Importance?

Digital identity itself has its significance, before considering its impact with the influence of blockchain. In general, its notion is assumed to hold an individual's personal information of a person that is available on the internet. But it is not exactly that, the digital identity of a person does include their social media profiles or emails, and others. Instead, it encompasses all that one holds on the web. Including images, preferences in shopping, user behavior, account information, payment choices, etc.

Denoting digital identity in the blockchain

However, the representation of Digital identity varies from platform to platform in the digital spaces - Banking systems, social media platforms, telecom networks, etc. While DID establishes the identity of an Individual both online and offline.

When we have to address the impact of Blockchain on Digital Identity, it shall be exclusive and dependent on the foundation of its importance. As accuracy is a major key to increasing the speed of process for customer onboarding, DID is crucial to prevent fraudulent activities like money laundering, etc. Here Digital identity management systems help manage the streamlining and standardization of citizenship services offered by nations.

In terms of social transformation projects, Digital identities play a vital role, while it ensures economic improvements for communities through different measures. To consider, we shall take Singapore. Their National Digital Identity system is one of the smartest initiatives helping citizens to access government services online.

Beneficiaries Of Digital Identity Managements In Blockchain

The EU General Data Protection Regulation provides modern solutions and strengthens its standards alongside. Through distributed ledgers infused in the scenario, Governments try to establish a well-own bestowed identity to the unidentified to protect citizens' personal information.

In terms of social transformation projects, Digital identities play a vital role, while it ensures economic improvements for communities through different measures. To consider, we shall take Singapore. Their National Digital Identity system is one of the smartest initiatives helping citizens to access government services online.

Beneficiaries Of Digital Identity Managements In Blockchain

The EU General Data Protection Regulation provides modern solutions and strengthens its standards alongside. Through distributed ledgers infused in the scenario, Governments try to establish a well-own bestowed identity to the unidentified to protect citizens' personal information.

DID enjoys the following benefits through blockchain technologies.

Decentralized Public Key Infrastructure (DPKI)

Completely decentralized storage.

Easy Manageability and control.

Public Key Infrastructures - Decentralized identity

By enabling PKI Identity holders are offered tamper proof, trusted medium to distribute asymmetric verifications and encrypted keys. This enables everyone to curate cryptographic keys on the tamper-proof blockchain networks in chronological order. It allows users to verify digital signatures, encrypted data, etc. in the process, we will also have to consider Certificate Authorities to provide traditional certification before decentralized solutions. While blockchain technology has made it much easier and simpler in many use cases than centralized solutions. Many of us are adopting verifiable credentials that are digitized credentials coming with cryptographic proofs.

Completely decentralized storage

The identities on the blockchain are inherited and stored on centralized servers. Through cryptographical Ethereum blockchain combinations, interplanetary File-systems that are distributed data storage systems or OrbitDB can do this intermediate centralization of data storage systems that maintain trust and data integrity. The tamper-proof decentralized storage solutions are structures to reduce entity and ability to accumulate data access and deny unauthorized sources that exploit and monetize through individual's confidential information. Moreover, this is one of the core components to secure identity data management. The decentralized framework credentials are directly stored in the user’s device which is termed as uPort’s trust graph or 3Box. And to add on with user control the identities are self-sovereign, and the worry about it getting revoked is eliminated. And the data under the user's control is interoperable at the same.

Easy Manageability And control

The entity provided for the identity is generally responsible for its security. Through decentralized identity frameworks, security becomes the main priority of the user to decide to implement their security measures on their measures and outsource tasks to services including digital bank vault, a password manager like applications, etc. Moreover, decentralized identity solutions force hackers to attack individual data stores that are costly and unprofitable.

Various Use cases of Blockchain Identity Management

Let us discuss various use cases of blockchain-based Digital identity management.

Use Cases Of Digital Identity Management In Blockchain

Identities are empowered with the ability to self-sustain.

The user data has capabilities to monetize

Data probabilities make them easily accessible.

Self Sovereign Identity (SSI) - Self Sustainable

The concept of Self sovereign identity is where people and businesses store their identity on their devices, and a chosen piece of information is shared to validate without depending on any centralized repository of data identity. This allows the data creation of independent nation-states, corporations, or any other global organization.

Data Monetization

With the ability to examine who owns the data and the profit shared, blockchain-based SSI gives control to users through decentralized modules and carves a path to data monetization. In general data, monetization refers to making quantifiable economic benefits where the information gathered from personally identified data substantially has increased value. By the end of 2022, it is expected that nearly 60% of the global GDP from 4.39 billion internet users are to be digitized. That assures an increase in the personal data count.

User Data Portability

The users are granted the right to data portability from Article 20 of the European Union General Data Protection Regulation. This pertains to data subject rights where data can be transmitted directly from one to another controller - which is also technically feasible. This enhances user experience and cuts down the need to re-verify identity across different services and platforms. It is also possible to migrate identities anchored on a targeted system to one another with ease. Moreover, data portability reduces friction for users and simplifies sign-up processes. And through reusable DID with quick KYC it's easy to regulate and also control user onboarding avoiding dropout rates.

Blockchain-Based DID Contributing To Economic Growth

With its futuristic approach to Blockchain, Digital ID is expected to contribute hugely to economic growth. And in a decade, it is considered inclusive as it has benefited individuals largely with the ability to stimulate economic activity for the global market.

It is seen that Decentralized Identity modules give the users a chance to unlock values contributing to greater economic growth in the global market. With decentralization picking itself into various streams, it has been a refined addition to progress, and data security in the first place is well coordinated with ease!