The Role of Blockchain in Digital Identity Management

Image Source

Technology have really successfully transform our digital world and makes it much more better than it usually is to be. In fact, it has been able to take it to another level and that is in the aspect of how our digital identity are been managed. For years, the issue of identities most especially in the digital age have been facing issues like data breaches, like been subjected to identity theft and many more. Even though we have been using the centralised system to help regulate our identities in the digital age for many years, but it still has its own limitations. Thanks be to Blockchain technology that have been innovated to help changed things around and help to offer this Decentralised system instead of the Centralised system when it comes to digital identities management.

Blockchain does not need any introduction any longer. Virtually everyone of us knows about it and how it actually works. Blockchain technology works in connection with several computers to help record transactions that are taken in a very accountable and transparent manner. The nature of blockchain technology works in a way whereby it helps to secure every transactions that are been recorded so that it should not be altered any longer the moment it is been recorded.

Due to the strength and power that the Blockchain technology actually has, it makes it work in a way whereby digital identity can be effectively managed much more. We have been using the Central system for our digital identity management for many decades. Centralised system like governments and many more. Even though they help to an extent, they are not fully efficient because those centralised system are prone to data theft and beeches. But with the Blockchain technology, it helps to offer that security most especially with the fact that it is Decentralised in nature.

There are a whole lot of roles that Blockchain technology plays when it comes to the digital identity management. The first is the fact that it helps to give this Decentralised system of management. This helps to eliminate any Centralized authority having the full ownership towards individual identity data. Now with the Blockchain technology, individuals have full access to their own digital identities and even the data. This goes a long way to help fight against the constant data breaches that have always been faced under a centralised system.

Image Source

Not only that, the fact that any transactions that are recorded on the Blockchain technology can not be altered also gives a high level of security much more. This goes a long way to enhance security for the digital identities and the data associated to it. Every individual data is fully protected under the Blockchain technology making it so difficult for hackers to hack into the data of individuals. Trust me, if you have ever walked in any identity management systems, you will agree with me that security is a priority most especially when data of individuals are involved.

There are lots of applications or should I say areas whereby blockchain can be applied to when it comes to digital identity management. The first is in the aspect of financial industry. If there is an industry that I really know which has been full with lots of issues concerning data breaches and data theft, I will say it is the financial industry. With Blockchain technology, it helps to secure the identity management of users involved in the financial sector. This goes a long way to prevent fraud issues and help to strengthen the confidence that customers have in the financial sectors.

Another aspect is in the aspect of the Government services. Few days ago, I wrote on how the Blockchain technology has helped to enhance the voting system. Same also applicable for identity management. With digital identities that we have right now, it helps to make sure that processes like voting, tax and many more are secured and easily accessible. I can also talk about the aspect of the health also whereby the data of the health of the patients are fully secured so that it can help to strengthen the health state of the patient involved.

As I conclude, if you will ask me, I will say I am really optimistic about the future of the Blockchain technology and how it is capable of offering it's potential to lots of areas in the digital space that we least think about.