By Enterprise Security Magazine | Saturday, December 19, 2020
Successful deployment of blockchain identity management can improve the level of security and privacy.
FREMONT, CA: Blockchain technology helps several industries with transparency, security, and many other features, adding value to their businesses. Thus, it is all set to revolutionize the current working of identity management and in a highly secure manner. The current identity management system is neither secure nor reliable. At every point, users are asked to identify through multiple government-authorized IDs like Voter ID, Passport, Pan Card, and many others. Sharing multiple IDs leads to privacy issues and data breaches. Therefore, the blockchain can pave the way to self-sovereign identity through decentralized networks, assuring privacy, and trust.
People share their data online through different unknown sources or services that can put their identification documents into the wrong hands. Also, as online applications have centralized servers for storing data, it becomes seamless for hackers to hack the servers and steal sensitive information. The breach statistics shows how quickly a hacker can steal personal or other confidential information. While signing up on several online platforms, users have to generate a unique username and password every time. It becomes complex for an individual to remember a combination of usernames and passwords for evaluating different services. Maintaining different authentication profiles is quite a daunting task.
Since KYC firms have to serve requests of several entities like banks, healthcare providers, immigration officials, and many others, they require more resources to quickly process their requirements. Therefore, KYC companies have to alter a higher amount for verification, passed to individuals as hidden processing fees. Moreover, third-party firms have to wait for a long time to onboard the customers. As a result, the current identity management processes need an innovative change. Using blockchain for identity management can enable individuals to have ownership of their identity by generating a global ID to serve multiple purposes. Blockchain provides a potential solution to the above challenges by enabling users a sense of security that no third party can share their PII without their consent.