Blockchain Identity Management: A New Revolution in Security Model

Reshape your security system through Blockchain Identity Management

For the past few generations, mankind has come across encountered several technological innovations and advancements. Each technology has its own set of features, layers, and security measures. Even though many features have been incorporated and gained popularity among many people in previous generations, security features have not yet met user fulfillment. This is because traditional technologies are subjected to many kinds of security breaches, data hacks, etc. So the world of security is always questionable.

To overcome the issues in previous-generation security models, blockchain, a cutting-edge technology, provides a security model for identity management. This blockchain-based identity management system is said to transform the current identity management systems in a highly secure manner

What is Blockchain Identity Management?

Identity management refers to the identification of users through personal identities like fingerprints, face recognition, card recognition, etc. Identity management in previous generations was carried out through centralized networks, and there is always a high chance that data in a centralized network can be hacked or subjected to security breaches. On the other hand, blockchain operates on a decentralized network where there is no central authority or intermediary, reducing the chance of security breaches. Once data is stored on a blockchain, it is guarded cryptographically and can never be changed or altered.

Benefits Of Blockchain Identity Management From the User Side

From the user’s point of view, blockchain-based identity management provides several uses. Some of them are discussed below:

Unique ID:

A unique identity number will be allocated to each user who registers in a blockchain-enabled identity management system. An IPFS-backed device stores all personally identifiable information in an encrypted format as part of a user’s unique ID number. Through blockchain identity management, users can share unique IDs with any third party to authenticate themselves directly.

Decentralization:

A centralized server will not store any personal identification information. All documents that identify users are stored on their devices and backed by IPFS, making them safe from mass data breaches. A blockchain identity management system backed by IPFS ensures that hackers cannot steal identifiable information. Due to the decentralized nature of the system, there will be no single point of failure. A single point of failure is that part of the system that fails, causing the system to stop working. In this way, there is no risk of compromise in the system due to the absence of SPOF.

Universal ecosystem:

There are no geographical boundaries when it comes to blockchain identity management. This allows users to verify their identities across borders.

Eradicating Traditional Issues in Claiming ID Proofs:

Blockchain technology is mainly known for its simplicity and quality. Blockchain identity management eases the process of claiming duplicate ID proof in case you miss the original one. People have to undergo a long procedure to claim new original IDs.For instance, people have to wait for long hours in government offices and undergo several formal procedures, while in blockchain-based identity management, people’s IDs and data are stored in the blockchain network and can be accessed when necessary. This greatly helps in reducing the paperwork and saves the valuable time of users.

Various Use Cases Of Blockchain Identity Management

Banking Sector:

Blockchain identity management eases the process of applying for loans, opening accounts, and other bank-related operations. Traditionally, the loan-claiming process involves a greater amount of paperwork and an identity verification process. In blockchain-based identity management, the required documents and IDs are incorporated into a decentralized network, so there is no need to carry any separate documents or IDs, and the verification will also be done directly from the blockchain. A lot of people’s time is saved through this.

Voting System:

Due to its vast advantages in several fields, many governments all over the world are planning to implement blockchain-based voting systems. Incorporating blockchain into the voting system helps to monitor the increasing and decreasing count of votes, which minimizes the chance of fake votes. It also enables election authorities to oversee the entire election through mobile phones over blockchain networks. Trust building plays a vital role in blockchain identity management. Voters can now believe in the result of voting since the chance of fraudulent activities in a decentralized network is completely low. Since there are no intermediaries in a blockchain network, labor costs can be avoided.

Transportation and Logistics:

Blockchain-enabled identity management provides a secure and immersive platform for transportation and logistics. Through the distributed ledger technology of blockchain, transport companies can store and manage their customer’s data securely. This eliminates the traditional method of manual entry and ensures that all the data is accurate and up-to-date. By automating the process of customer verification in a blockchain identity-enabled system, a large amount of time is saved.

Conclusion:

On the whole, blockchain identity management is indeed a gift for modern security systems and a perfect alternative to traditional identity management systems. Presently, blockchain identity management solutions are slowly gaining people’s recognition and in the future, they will be the talk of the world. This is because, in the upcoming generation, many further advancements and updates are expected in blockchain-based identity management systems.