Blockchains and Digital Identity
We all leave digital footprints on the internet whenever we transact, do a payment, sign–up on a website such as Facebook, etc. The more platforms we us, the more we leave traces on the internet. When using the platforms Paypal, Google Wallet or Apple Pay, you have to disclose your personal details and financial information. Daily, millions of people carry out activities online and the more transactions the individual carry out the more footprints he leaves behind. Most online transactions require that individuals disclose personal information before they can make use of the service. As soon as this information is captured on the specific database, which is centralized and controlled, other databases also have access to it.
Currently there are many problems in the identity management system. Users enter their data and register on several online platforms and websites, and need to remember numerous passwords. Some of the individual‘s data change over time, for example, residential addresses and telephone numbers. People can‘t update it all and they also forget where they put their information and on which website.
Bad actors like hackers can easily break into just one major database and gain every user‘s information. Most individuals‘ data can be obtained without the knowledge of the owner, and third parties can gain access to this information without the owner‘s knowledge. Fraudulent people are now in control of information of the database and without consent, the individual‘s information can be shared with other parties, sometimes in favour of the client, to recommending related goods and services to try out.
The Blockchain can be used to create a platform that protects individuals. The Blockchain technology stores data in a decentralized and trusted manner. This single digital identity can always be kept up-to-date with the latest information. Industries which will adopt a blockchain-based identity could, for example banks, credit card companies, and healthcare providers. The blockchain can be used to create a platform that protects individuals identities from theft and fraudulent activities. It can allow individuals the freedom to create encrypted digital identities that will replace multiple usernames and passwords.