Citizen Identification (4/4): Benefits of Decentralized ID
In the last article of this series of blog posts, we will briefly sum up the benefits of Decentralized Identity and how blockchain technology can contribute to it.
What Are the Benefits of Decentralized ID?
European Union General Data Protection Regulation (EU GDPR) looks for increasing of ID standards that modern Digital ID solutions need. Governments showed the willingness to use blockchain technology to confer identities to “unidentified” people in developing countries and to protect citizens’ personal identification information in developed countries.
Blockchain technology offers the following advantages:
- Decentralized Public Key Infrastructure (DPKI)
- Decentralized Storage
- Control and responsibility
Decentralized Public Key Infrastructure (DPKI)
DPKI is the core of Decentralized ID. The blockchain makes it possible to create DPKI using a tamper-proof and reliable way to distribute the asymmetric keys for verification and encryption for ID owners (cf. The second article of this serie).
DPKI allows ID owners to create or attached cryptographic keys on a blockchain in a chronologically order and tamper-proof way. These keys are used to allow others verifyers or issuers (governments agencies, banks, insurance companies, employers, etc.) to checks digital signatures, or encrypt additional data (new diploma, certificat of ownership, etc.) to an ID holder.
Without DPKI, individuals and companies have to obtain, which most of the time means to buy, digital certificates from traditional official certificate authorities (public or private). Thanks to blockchain technology, there is no need for such centralized certificators.
DPKI enables people to use and remain the owner of verifiable credentials which come with cryptographic tamper-proofs.
Decentralized Storage
As we discussed, ID documents anchored on blockchains are, thanks to cryptography, incomparably safer than identities stored on centralized servers. By using cryptographically secure blockchain like Cardano, together with a distributed ID management system like Atala Prism, it is possible to proceed without such a centralized data storage solutions while still increasing the level of trust and the data integrity.
Decentralized storage solutions, which are tamper-proof by design, reduce or even eliminate an entity’s possibility to obtain unauthorized data access to use or monetize an individual’s information without his consent.
Decentralized storage is a cornerstone of a secure digital ID management. In a decentralized architecture, credentials and documents are usually stored off-chain directly on the owner’s device (e.g., smartphone, laptop, etc.) or securely held by private identity storage solutions. Even if store by another entity, data remain accessible only to the rightful owner as long as he keeps his private cryptographic key safe.
Control and responsibility
When the owners is the only one having access or to allow access to his ID data, identities are considered as self-sovereign. This means the user can fully control access to his data without to fear losing/being revoked the access. This principle makes the information more interoperable, permitting users to use data on multiple and different platforms, employ the information for various purposes, and avoid the user from being locked and forced into using one platform (cf. Google solutions).
In centralized systems, the entity providing the ID’s is often responsible for the storage and the security of the data. In a decentralized architecture, security becomes the responsibility of the owner, who decide to implement his own security measures or to use secure services like a digital vault or a password-manager like app.
In addition, blockchain-powered, decentralized ID solutions force hackers to attack individual data storage instead of centralized servers, which is costly and way less profitable.
Conclusion
The development of new identity management systems coupled with blockchain technology shows great promise for citizens around the world.
In developing countries, this will provide all citizens with the means to obtain, maintain and prove their identities anytime and anywhere. this will allow them to access all of the things that they currently lack:
- Legal existence,
- Access to banking and financial services,
- Access to property,
- Access to different credentials.
In countries where citizen identification systems are more developed but still centralized, the decentralized architecture will allow:
- Full control by the owner of hos own data,
- Increased security thanks to cryptography,
- Use and monetization of data by the owner himself
- A guarantee that the information is forever anchored in the blockchain and cannot be altered,
- ID portability.
Proof of Africa supports the “African Blockchain Centre for Developers” (ABCD) which aim at creating opportunities by providing blockchain solutions to the world thanks to young talents working in Africa
Learn more about our initiatives here.
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