Blockchain Digital Identity Solutions- A Revolution in Digital Authentication

Digital identity solutions prove to be invaluable in providing a seamless experience to users and organizations. However, the existing system is not reliable and secure as you are asked multiple times to share your IDs which may lead to data breaches and raises privacy concerns. Hence, it is crucial that the personal information must remain private and secure. Blockchain helps achieve self-sovereign identity goals through decentralized networks. Several organizations, agencies, and departments are turning to Blockchain for government digital identity to provide a secure and trusted infrastructure for citizens to manage their identity independently.

In this blog, we will cover in-depth the challenges in the existing digital identity management system of government and how Blockchain can resolve them.

Challenges in Existing Digital Identity Management

The following are some problems in the current digital identity management system that demand a better solution-

• Risk of Data Breaches

The downside of the current digital identity system is that it stores the user’s information at one place, making it vulnerable to widespread data breaches and identity theft. Hackers can harm the centralized database and access a large amount of sensitive user information that could be further misused. According to a report, personally identifiable information (PII) has emerged as one of the most common types of data breaches that impacted billions of records. Blockchain digital identity solutions can help present the risk of data breaches to a great extent.

• Lack of Data Control and Ownership

The centralized digital identity systems restrict the user’s control and ownership over their personally identifiable information (PII). It also increases the risk of fraud. Users have no idea that their personal information might be being misused without their consent. No control over the data also restricts them from knowing where their PII has been stored.

• Privacy Issues

The existing digital identity system requires citizens to disclose their personal information for verification purposes. The data disclosure raises privacy issues and increases the chances of data being misused by unauthorized or malicious users. It raises the need for a secure system that prevents concerns about privacy infringement to a great extent.

• Poor User Experience

Government agencies typically manage their own digital identity database. Operating in silos leads to redundancy as one has to go through identification and authentication processes multiple times while interacting with different government agencies. This results in more personal data being added to each database, which increases the security risks. Not only this, but the redundancy in the system also affects the overall user experience and makes the process inefficient.

Blockchain: Reshaping Digital Identity Management System

Blockchain for government digital identity management is an innovative approach to address the existing challenges. The following points highlight the benefits of using Blockchain digital identity solutions–

• Consent to Share Identity Data

Blockchain digital identity solutions restrict data sharing without the user’s consent. Whenever the request for data is made, the permission to show a credential will be prompted to the user. Another privacy feature Blockchain digital identity solutions offer is Zero-Knowledge Proofs, which allows the user to prove claims without disclosing the entire data. 

• Increased Data ownership and Control

Another advantage of Blockchain digital identity solutions is that they offer complete data ownership and control. With decentralized identity management, one can get complete control over their personal information. No party can gain access to the user’s data without their consent. This reduces the risk of unnecessary exposure. Such full ownership control gives a reason to avail Blockchain identity management services.  

• Decentralized Data Storage

The decentralized storage system of Blockchain digital identity solutions eliminates the vulnerabilities associated with centralized databases. The data on such systems are stored on individual nodes which makes it difficult for malicious users to access sensitive and personal information at once. Hackers can attack centralized storage systems to obtain 20 million accounts at once. However, in the case of a decentralized storage system, the hacker needs to hack 20 million devices to obtain the data which is next to impossible. This heightened security leads many to avail Blockchain identity management services. 

• Streamlined Identity Verification Processes

The shared and decentralized ledger of Blockchain provides seamless cross-agency access to identity information. This easy information access eliminates the redundancy in identity verification processes and provides a secure and efficient system for identity management. Blockchain digital identity solutions enhance the user experience by reducing the time and effort that is required in conventional identity verification processes across various government services. 

• Emergency Response and Quick Access to Information

Blockchain for government digital identity has emerged as a valuable tool, most specifically in emergency situations. Blockchain digital identity solutions provide immediate access to accurate data that helps authorities make informed decisions during crises. It enhances the ability of the government to respond in an emergency situation.

Conclusion

Blockchain has the potential to address the longstanding challenges of the existing digital identity system. This technology helps organizations and governments to build a secure, transparent, and efficient digital identity ecosystem, where users are not only able to protect but also can gain maximum control over their digital identities. If you’re interested in Blockchain digital identity solutions development, get in touch with a reliable expert. Antier is a leading Blockchain development company, specializing in building digital identity solutions for public sectors. We offer preeminent Blockchain identity management services that enable organizations and individuals to issue, manage, and verify any government digital identity. Connect with our experts to get started with our Blockchain identity management services!