How blockchain is going to give you back control of your own identity
Get ready to take control of your own identity (surprise — you currently have very little control) because the world of identity management is about to be revolutionised by Web3.
As we all know, having efficient and secure identity management is more crucial than ever, and the race is on to discover even more practical use cases for blockchain. When it comes to identity management, blockchain is stepping up to the plate with unmatched security and transparency, making it a total game-changer in the way we manage our digital identities.
At the core of blockchain’s identity management capabilities lies its inherent cryptographic architecture. By integrating cryptographic signatures and public key infrastructure (PKI), blockchain provides a robust framework for verifying and storing user identities. In this decentralized model, users retain absolute control over their personal information, granting access only to authorized parties. This approach mitigates the risks of data breaches and identity theft, engendering a safer digital environment.
A good example of identity management on the blockchain is the concept of self-sovereign identity (SSI). SSI empowers individuals to independently create and manage their digital identities, without relying on centralized authorities. Users can generate a unique digital identifier, store credentials, and seamlessly share verifiable proof of identity with third parties. An SSI implementation, such as the Sovrin Network, epitomizes the transformative potential of blockchain technology in the realm of identity management.
But why do we need this?
Think about the numerous instances where you give up personal information to unfamiliar individuals. Consider the moment you check into a hotel, entrusting your passport to a concierge whose identity barely transcends their first name. Similarly, when purchasing alcohol and getting ID’d, you inadvertently divulge an abundance of data (probably your passport or driving license) when only your age is needed.
Imagine a solution that enables you to exhibit your identity whilst granting access solely to the relevant data — your age, in this case. Think about an app where you can toggle on and off parts of your identity you want to share. This approach would completely mitigate the unnecessary exposure of sensitive personal information.
A critical component is the implementation of smart contracts. These self-executing contracts, encoded with predefined rules and conditions, facilitate secure and automated transactions on the blockchain. Smart contracts can be tailored to streamline various identity management processes, such as authentication, authorization, and credential verification. By harnessing the power of smart contracts, businesses thwart potential security threats and foster a more seamless user experience.
Consider a use case where a user, Max, for example, wishes to access a restricted online service. A smart contract, acting as an intermediary, verifies Max’s identity by cross-referencing his digital credentials stored on the blockchain. Once his identity is authenticated, the smart contract grants Max access to the desired service. This automated process obviates the need for manual intervention, enhancing security and expediting transactions.
By combining blockchain technology and identity management, there is a lot of potential for making our digital lives more secure and simplifying identity verification processes. Are you ready?
