Security, transparency, and many other advantages blockchain technology provides enhance various enterprise sectors’ value. As a result, it is ready to change identity management as it now exists completely.
The current identity management system needs both security and dependability. You are required to prove your identity at every turn using a variety of government-issued identification documents, such as a pan card, passport, voter ID, etc.
The Need For Blockchain Identity Management System
Sharing multiple IDs might result in data breaches and privacy issues. As a result, the blockchain may create a decentralized network that ensures self-sovereign identification inclusive of trust and privacy and where identity papers are checked, safeguarded, and endorsed by participants with the appropriate permissions.
Everybody frequently utilizes proof of identity, kept in an unidentified place, and exchanged with other individuals without specific permission. Identity documents are required for everything from loan applications, bank account openings, sim card purchases, and ticket reservations. Banks, government institutions, and credit bureaus are the weakest link of the existing identity management system because of their susceptibility to data theft and hacking.
As a result, the blockchain has the potential to do away with intermediaries while yet enabling individuals to maintain their identities on their own. But before switching to the blockchain, it’s important to comprehend how identity management functions and the problems with the current system.
Benefits Of Blockchain Identity
What advantages does the blockchain-based identity management system provide users in their eyes? There are four advantages of implementing blockchain identity management from the user’s perspective:
Specific ID, Each user will receive a unique identification number after registering on the blockchain identity management system. All personally identifiable data about the user is kept on their device with IPFS support and combined into a single, unique ID number. Blockchain identity management enables users to identify themselves directly by sharing distinct IDs with any third party.
Decentralized
Users’ personal identifying documents won’t be kept on a central server. Users’ devices are protected from large-scale data breaches via IPFS, which stores every document that identifies them. Hackers cannot get identifying information through the Blockchain identity management system supported by IPFS. No single point of failure (SPOF) will exist because the system has been decentralized. That component of the system, known as a single point of failure, causes the system to break down. As a result, the lack of SPOF guarantees that the network won’t ever be compromised.
Consent
A blockchain-based identity management system won’t keep any user data on file. The technology also uses smart contracts to allow for regulated data dissemination. Therefore, on the blockchain, data modification is not feasible. For identity holders as well, a blockchain-connected identity management system is extremely safe. No transaction involving the user’s information is permitted without the user’s express permission. The user is forced to manage their personally identifiable data.
An International Ecosystem
Blockchain identity management has no regard for borders of any kind. Users can thus utilize the platform outside their country to confirm their identification.
To Conclude
The degree of privacy and security may be raised by successfully deploying Blockchain identity management. Third parties may verify the user’s data without time or cost wastage because of the decentralized and irreversible ledger.