Saturday, September 21

Improving Identity Management Through Digital Asset Blockchain

Beyond cryptocurrency, digital asset blockchain is fast becoming a useful solution to various Internet-based operations. One such process is identity management.

Every day, millions of users go online to do different activities, most of which require them to disclose pertinent personal information. With each transaction, whether that involves commenting on a social media post or purchasing an item, a digital footprint is created. Gathering and protecting these data gets more complicated daily, which is why most traditional identity management systems can no longer deliver.

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Issues with Traditional Identity Management

Traditional identity management contains many loopholes that defeat the purpose of its operations. Here is a list of identity management problems with the conventional setups:

  • Disclosure of Personal Information

Almost every online service today requires users to disclose their personal information for sign up purposes. The details are typically stored on many Internet databases. If a hacker manages to access the database, all the information it contains is automatically compromised.

  • Third-Party Access

Information on conventional online databases could be given to third parties without the consent of each individual. While there is often a well-intentioned reason behind this, it does not change the fact that the data was shared without the owner’s knowledge and permission.

  • Identity Theft

Conventional identity management can enable fraudsters to make transactions using other people’s identities. Once compromised by malicious software, it can allow unauthorized device scans, the acquisition of login details, and other online attacks.

Benefits of Using Blockchain in Identity Management

What is blockchain? and how can it solve these identity management problems? Blockchain technology is an alternative online platform that allows users to make transactions without compromising their security. Leveraging it for identity management comes with these advantages:

  • Self-Sovereign Identity

Through blockchain, users have full control over their data. They can decide what information to share with each interaction they make online. Governing entities no longer have to collect and store every identity attribute from each individual.

  • Digital Watermark

The marriage of decentralized blockchain and a comprehensive identity verification system can produce a digital watermark unique to the user. This means that every transaction the user will make will come with the distinguishing sign. Should this be implemented with the help of blockchain technology companies, individual identity can be ascertained systematically.

  • Master Nodes to Verify User Identity

In a blockchain, a master node is an independent entity that validates the information from other nodes. It can select a node in the platform for user identification purposes, and the individual behind the node can choose to respond or not.  If the specified node does not perform well, the master node will look for a different node to verify.

Identity Management Made Better through Blockchain

Through a system based on ledger-based technology, users can expect a more efficient way of processing and managing information. With the strategic use of digital asset blockchain in the identity management arena, more people will be assured of a secure, sustainable, and fail-proof way of using their data for transactions.

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