Blockchain: Giving the People Control Over Their Identities
In September of 2017, cybercriminals attacked Equifax databases resulting in a massive data breach affecting over 143 million Americans. Hackers got their hands on personal information such as social security numbers, addresses, financial information, and birthdates. As the threat of identity theft became real for millions of Americans, people began thinking about the future and security of their personal information.
Blockchain advocates have been thinking about security of data for a while now. While most people have heard of blockchain, there is still much confusion regarding what the new technology can accomplish. Simply put, a blockchain is a next generation database. It is a powerful technology that can decentralize the way society currently collects, moves, and secures data. By decentralizing and distributing data, blockchains minimize the risk of large breaches such as the one recently faced by Equifax. As the popular analogy puts it, it may be easy to rob a single house, but nearly impossible to rob an entire city. By moving data from siloed databases held by corporations onto blockchains, people remove their information from a “single house” and securely distribute in throughout “an entire city”.
Bitcoin has already popularized this decentralization and distribution process through the creation of digital money. However, recent hacks that have leaked large amounts of personal data have incentivized individuals to look for solutions that decentralize and secure more than just money, but entire identities.
What is identity on a blockchain?
Let’s start with thinking of information currently used to identify people. One of the first identifications issued to individuals is a birth certificate. When someone is born, they receive a hard copy of their birth certificate and the United States vital records office stores this information digitally at the state level. With a birth certificate, citizens can later gain access to other important government forms of identification such as drivers licenses, passports, and social security cards. All of these documents are stored in digital form by the government, and together, begin to form a complete legal identity for an individual.
However, personal identity is a lot more than some legal documents. A large amount of information about our personal habits and behaviors already exists in some digital form held by individual organizations. Social media sites store our photos and hold data on how we interact with our friends. Ecommerce sites collect data on our shopping habits. Video streaming services hold data on what, where, and when we watch TV and movies. Search engines and email providers organize data on what we search for and when we do it, essentially giving them insight into how we think. The list goes on and on.
Currently, all of this data is held in separate siloed databases owned by various corporations and organizations. But, what if we could aggregate this information together on a blockchain, add the digital legal documents, then pair all that with biometric data from new technologies like the fingerprint scanners and face readers on our phones? We could begin to create an almost perfect digital identity of an individual.
The large hacks of Equifax have shown the weaknesses of keeping this sort of valuable information in a centrally held database. Moving this information onto a decentralized and distributed ledger such as a blockchain removes a central point of attack for cybercriminals, making it costly and time inefficient to target. Furthermore, encrypting the information on a blockchain gives individuals control of their own data because only they will control their cryptographic private keys needed to access the material.
Blockchain digital identity in use:
Over one billion people including millions of children globally lack any form of officially recognizable identification. Without any identification, it becomes difficult for these people to apply for healthcare, gain access to schools, apply for citizenship, vote, or open a bank account. This is the current struggle faced by millions of refugees who are being displaced from their homes. Recently, at the United Nations ID2020 Summit, Microsoft and Accenture released a tool for refugees to help build an immutable identity stored on a blockchain that can never be lost or stolen. By working with global organizations and nonprofits such as UNICEF, the World Bank, and the Bill and Melinda Gates Foundation, individuals can begin to aggregate vaccination records, refugee registration, birth registration, and other important information onto a single, secure blockchain platform.
Homeless Americans face similar identify issues as foreign refugees. Without identity proof, it is hard for these individuals to open bank accounts, become employed, and sometimes gain access to homeless shelter services — all of which would be useful to escape poverty. Organizations like New York City startup Blockchain for Change are working to place identities of the homeless population on a blockchain. They have partnered with Life Wireless, the Robin Hood Foundation, and Urban Pathways to get over three thousand homeless people in New York City access to mobile devices equipped with blockchain powered mobile app Fummi, which aims to help the homeless check into shelters, apply for food stamps, and keep track of financial expenses.
While storing identity on a blockchain can be life changing for refugees and the homeless, it is also useful for the average consumer. Companies like Civic are working to move everyone’s personal data onto a secure blockchain. This information will be distributed and decentralized on a cryptographically secured ledger. Large financial institutions won’t run the risk of losing personal data in hacks. Internet companies will not be able to access and profit off personal data because only individuals will control the cryptographic private keys defending their information. They can then give specific organizations and companies access to their information for predetermined time periods, moving data in a secure peer-to-peer manner without the need of a middleman. Blockchain powered digital identities will finally give individuals the power to control their own information.
While hype surrounding the blockchain has led to an explosion in demand for bitcoin and other cryptocurrencies, it is important to step back and understand that the value of blockchain stretches far beyond digital payment tokens. Anything that involves data and information will be affected by this new technology. From money, to votes, and now identity, blockchain has enormous potential to positively impact society. In a world that is becoming increasingly dependent on digital information, it is time we welcome this new technology that improves the way we handle and control our data.
Image Citations:
https://cdn-images-1.medium.com/max/1000/1*ZZZd3xt8ZUgplvY5lohbMg.jpeg
