On Chain Cross-border Identity Verification

On Chain Cross-border Identity Verification

How does it change the way we interact with the internet and its impact to our daily lives?

Blockchain presents several compelling use cases for identity verification, addressing many of the shortcomings associated with traditional identity management systems:

Decentralised Identity Management: Blockchain enables the creation of decentralised identifiers (DIDs), which are a new type of identifier that allows for a verifiable, user-controlled digital identity. This approach reduces reliance on centralised authorities or companies for identity verification, empowering individuals with control over their own identity data.

Self-Sovereign Identity (SSI): SSI is a model where individuals and entities can store their own identity data on their devices and provide it efficiently to those who need to validate it, without needing a central authority. Blockchain ensures the security and immutability of this data, making identity fraud much harder.

Ask yourself this :

“Do we actually own the accounts of our current Web2 social media platforms?”

Secure and Fast Verification: With blockchain, the process of verifying identities becomes faster and more secure due to cryptographic guarantees. For instance, once identity information is on the blockchain, verifiers can check credentials without needing to contact the issuer each time, significantly reducing verification time and costs.

KYC Processes: Financial institutions spend considerable resources on KYC compliance. Blockchain can streamline this by allowing customer identity to be verified once and then shared securely with multiple institutions, reducing duplication of efforts and enhancing user experience by avoiding repetitive authentication processes.

Healthcare: Patient identity can be verified through blockchain to ensure that medical records are accessed or shared with the correct, consenting individuals, improving privacy and reducing administrative errors.

Data Privacy and Consent: Blockchain’s architecture allows users to share specific identity attributes without exposing all their information. Through zero-knowledge proofs or similar cryptographic techniques, one can prove certain facts about their identity (like being over 18) without revealing any other personal details.

Immutable Records for Public and Legal Use: Governments and public sectors can use blockchain for managing public records like birth certificates, driver’s licenses, or passports. This not only reduces fraud but also ensures that once identity data is recorded, it cannot be altered, providing a tamper-proof history of changes or verification.

Combating Identity Theft: By decentralising identity storage and giving control back to the users, blockchain reduces the risk of large-scale data breaches where millions of identities can be compromised at once. Each user’s identity information is cryptographically secured and only shared with explicit consent.

Interoperability and Portability: Blockchain identity solutions can be designed to be interoperable across different services and borders, complying with regulations like GDPR for data portability. This means users can use their blockchain-based identity across various platforms globally.

Voting Systems: Blockchain could enhance the security and transparency of voting systems, ensuring that each vote is verifiable and that the identity of voters is securely and anonymously recorded, reducing electoral fraud.

The integration of blockchain for identity verification not only promises enhanced security, privacy, and user control but also aims at creating a more efficient, transparent, and user-friendly digital identity ecosystem.

However, the adoption of such systems requires overcoming technical challenges, ensuring user education, and establishing legal frameworks to recognise digital identities on blockchain.