As uncanny as it may sound, blockchain has revolutionized the digital space. The significant part is that various businesses are taking notice of its supremacy. They are even focused on instilling certain features that add value to their business. Numerous fields have risen to heights by the utilization of this magnificent technology. The industry experts and owners are keen on modifying the ongoing identity management mechanism.
Transparency and security are the two significant factors that are the topmost priorities of business entrepreneurs and customers. In blockchain identity management, all the focus points are targeted. The pre-existing identity management system is not that secure and authentic.
That's why at every stage, one is told to give proof of their identity. The verification is provided through government-approved ids like passports, pan cards, voter IDs, driving licenses, etc.
It's pretty clear that blockchain in identity management will prove to be magnificent. Their decentralized network has the potential to pave the way for self-sovereign identity. This will solve all privacy-related and data violation issues.
Identity documents are something that everybody possesses, and the information related is shared with third parties. The concerned party's consent is not considered, and every detail is accumulated at an undisclosed location.
Let's suppose that if a person wants to book a ticket from the "XYZ" website or app, all their details are shared with third parties. The same goes for customers who apply for a bank loan or open a bank account. Now, this information gets leaked out because the Government agencies have a very fragile structure. They are constantly on the verge of hacking and data theft.
Therefore, the application of blockchain removes the intermediaries. Only the concerned members are allowed to have access to data shared and manage it independently. But implementing blockchain is not a piece of cake; many challenges are to be faced during the execution process.
This article will answer your doubts and queries about blockchain technology's identity management. Just keep on reading!
The amalgamation of technologies and processes present within an organization to authenticate a person is known as identity management. This is most commonly known as IAM (identity and access management). The user information is systematically stored on the computer systems. This also involves handling illustrative details of the users, like who and how the particulars can be retrieved and changed.
When the identity is in paper format, it is vulnerable to threats like fraud and deceit. To overcome this limitation, digital identity was introduced to escalate the processing speed. It helped the more prominent organizations to offer reciprocity between various units and subdivisions. The only concern it faces is that it is primarily a centralized platform. A single server handles all the processing. If the primary server goes down, the rest of the members face unnecessary glitches. Also, it falls prey to hackers and fraudsters.
Education: The education sector is soaring high. With each passing year, the number of colleges and schools is rapidly increasing. Also, there are multi cases of providing dummy academic certificates. The legitimacy of such unverified stuff requires a lot of effort and hiring professionals. This process is highly time-consuming and frustrating.
Government: Government is all about bureaucracy. Some different ministries and departments require data sharing at various levels. There is insufficient interoperability, so the information exchange over diverse platforms is impossible. Thus, it magnifies the cost and timing processes that are not suitable for any organization.
Banking: Digitization has made a lot of impact on the banking industry. Now, every user is provided with the login details like user ID and passwords. This makes things easier for the customers as they can access every information related to their account. On the other hand, it causes an epic risk to the user's personal information caused by the fraudsters.
Healthcare: Today, the world is finding it hard to access quality healthcare. People are suffering, and there is massive chaos in the healthcare industry. There is no coordination between the inter-related medical departments with each other. This leads to confusion, and proper facilities are not provided to those who need them the most.
Also, interoperability is required among other sectors like hospitals, health insurance companies, pharma companies, etc. This will significantly impact the healthcare providers, and the appropriate services will be provided to the patients.
These were some of the significant challenges faced by the miscellaneous industries. To surpass these obstacles, blockchain technology is applied in identity management. Here, the ownership is offered by building an ID available worldwide. This technology helps solve the difficulties the users face, like security threats or any third-party information leakage.
The blend of identity management with decentralized identifiers and embedded encryption permits the users to build and manage their programmed identities. These programmed identities are known as digital identities. They are created organically by using any personal details available on the internet.
The next thing is creating a decentralized digital identity(DID). The user must register on the platform by signing up for a self-sovereign identity. There is the creation of public and private keys. In case the public keys are compromised, they can be hoarded on-chain. It can also be seen that the entire data is not saved on-chain because of reliability issues and consent with the privacy management.
A private key shields the decentralized identifier. This gives them the right to have control over their identity. An individual can possess multiple ids. So, monitoring them becomes a task. Some certain specifications or attributes are affirmed with the DID. The providers sign this stuff cryptographically, so all the crucial details are kept with them.
On the contrary, the public keys are distributed on the network. If the pairing of these two needs to be done, then the first step includes verifying the private key holder with a public key. The next step includes the message decryption solely by the private key owner encrypted with the public key. After proper matching, access is allowed.
This application enables users to authenticate their individuality instantaneously. The following steps are involved during the whole process;
Retrieving Identical ID Proof After Misplacing the Original: People tend to misplace their IDs or documents. To obtain the identical copy, they must visit the government offices, which is tiresome and boring. It often takes weeks or months to get a duplicate copy. The conventional method is usually a multi-phase process. This is unquestionably one of the most significant advantages of blockchain, as it does not tamper with the records. This makes the records extraordinarily reliable and secure.
Distinctive ID: A unique ID is presented to every user that registers itself on the blockchain identity management system. This ID contains all personal details in the encrypted format stored on the device. Additionally, the users share unique IDs with a third party to authorize them straight through blockchain identity management.
Authorization: One of the benefits of identity management using blockchain is that no user information is saved on the system. There is an alternative of data revelation in a much-restrained manner that is also permitted via smart contracts. Whatever information needs to be disclosed, the user's permission is required; otherwise, there will be no transaction. Thus everything is controlled, monitored, and managed by personally identifiable information(PII).
Handling User Identity for IoT Systems: IoT(Internet of Things) has successfully made its place in several electronic smart appliances. Contemporary fitness watches, remote patient monitoring (RMP) systems, security cameras, etc., utilize this technology.
They can gather the data and outflow it to the service providers. When the data is stored on the device, it becomes extremely sensitive, i.e., user information becomes vulnerable and is subjected to risk. Now, with the blockchain application, the device is in complete control of the user. This makes the data safe and prohibits fraudsters from acquiring any information.
Decentralized Web: Whatever information is available online is captured by third-party services. This is because the ISPs can track each site, and these third forces keep track of the emails. Blockchain provides a decentralized web where no personal information is leaked while retrieving the services. This is valid only when a digital identity management solution is applied to the system network. The activities are justified when the users can use one digital identity on the blockchain network and gain the services for the user authentication motive.
Non-custodial Login Solutions: When the user is required to log in on any internet-based service, a third party becomes a trusted party where the user IDs and passwords are kept safe. Central servers keep the user information secure, known as the custodial login solutions. They are also prone to getting hacked. Only the blockchain network can change this limitation by administering advanced security characteristics to the system. They don't behave like the central servers; relatively, they are decentralized and require private and public keychains for login.
Identity Verification: The blockchain network provides identity verification by providing an identity management solution.
Blockchain identity management is a fantastic way of keeping your crucial data secure. The incredibly decentralized ledger is fundamentally immutable. It does not allow third parties to acquire user data directly. In case of any disclosure, permission is taken from the user to access the information.
To overcome the identity crisis, they offer a superior solution to rectify such issues. It is certain that in the upcoming years, it will become universally popular, and this blockchain-based ID solution will be accessible to all. Its advanced characteristics are impressive and will lead to phenomenal results.
At suffescom solutions, an experienced team of blockchain developers will guide you through the entire process. Get in touch with our experts!
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