In this article i will discuss the What is Blockchain-Based Identity Verification.
This new concept uses blockchain to create a fully decentralized, secure, and tamper-free identity verification process.
By mitigating privacy risks and identity theft, blockchain-based identity verification is changing the paradigm of information management and authentication in different industries.
What is Blockchain Technology?
Blockchain technology is a transparent and secure means of recording a sequence of transactions on a distributed computer system.
Thereafter, each transaction is grouped into a ‘block’ which is then linked to the prior block, thereby producing a ‘chain.’ Blockchain formed a consensus mechanism through which Bitcoin was created.
The functionality of blockchain is not limited to finance and includes areas such as healthcare, supply chain management, and voting systems.
Moreover, blockchain removes the necessity for intermediaries and central authorities to strengthen the already existing trust, security and efficiency.
What is Blockchain-Based Identity Verification
With the help of blockchain technology, identity verification can be done in two steps, first one involving indentity verification and the other one being decentralized.
Identity data is stored on a blockchain enabling individuals to have access to it at any point in time allowing people to have control over their personal information which makes privacy higher than ever.
This approach mitigates the risks of identity theft and makes people feel secure over their data. Since, there is no central authority for control, decentralized identity verification through blockchain makes identity management more efficient in seemingly all industries like finance, healthcare, and even government.
How Blockchain-Based Identity Verification Works
Here is how it usually works:
Identity Creation
An individual creates a digital identity by providing relevant personal information that is later encrypted and stored in a blockchain. This information could contain biometric data, identification documents, and other relevant details.
Decentralized Storage
The encrypted identity data is divided and stored across various nodes within the blockchain network. This way no single entity has control over the data. This mitigates the chances of data breaches and enhances security.
Verification Process
For identity verification, the requestor, which could be a service provider, submits a request for verification to the blockchain network. The network has to check the data that is provided with the stored encrypted data.
Smart Contracts
Self-executing with the terms of the agreement between buyer and seller being directly written into lines of code, smart contracts facilitate the process of verification. They ensure in advance that only certain authorized parties have the ability to access the data.
Immutable Records
After the identity is verified, the verification transaction is stored on the blockchain as an immutable record. This means that the identity data and its updates along with the verification process will be unchangeable.
User Control
Users can exercise full control over their digital identities, selecting who has access to their information and under what conditions. This increases privacy and enables users to manage their identity data with adequate security.
Benefits of Blockchain-Based Identity Verification
Here are some key pointers on benefits of such technology:
Increased Safety: Using Blockchain’s decentralized storage, hack attempts and breaches are almost impossible. This is because identity files are dispersed across multiple nodes to be secure.
Pervasive Protection: Protecting one’s identity online isn’t as complex as it seems. Users have sole authority over who gets to access such information and can easily make changes to adjust what they want visible to the public.
Believability and Openness: Blockchain eliminates requirements of trust within users as the records formed are transparent. Moreover, because there is zero tampering allowed for any records, users have access to all transactions that have ever occurred.
Creating Grief has never been easier: Due to the fact that altering identity files tampering boundaries deeming it impossible for proponents of fraud identity theft.
Custom Contracts for everyone: Smart contracts placed within Blockchain facilitate the whole process of identification, making it simpler for everyone. Such contracts are self-executing which means no human intervention is needed, giving space for error.
Less Expenditure: Deduction of middleman services allowing blockchain based identification significantly diminishes administrative configurations which ensures cost friendly services.
Publication Guarded: Individuals who do not own traditional identification are easily able to create one with the help of blockchain which is secure and reliable.
Compatibility: Unlike other technologies, verification of identity for different clients belonging to different corporations becomes much simpler and dependable through blockchain systems.
The Features of Blockchain-Based Identity Verification
Decentralized Storage
Data pertaining to identity is kept in a number of different locations within the blockchain network which helps in privacy and cyber attack protection.
Immutable Records
Identity information, once recorded into a blockchain system, is impossible to change making sure that the quality as well as the crendibility stays intact.
Enhanced Security
Users identity data is protected using unique blockchain encryption, making system access extremely difficult for hackers and hostile threats.
User Control
Users are able to maintain privacy as they can determine the range of the information pertaining to them that can be made available and under what limits.
Transparency
Identity transactions done and recorded on the blockchain onn can easily be verified and audited, thus providing assurance for the users and service providers.
Automated Verification
Users identity information can be verified easily and accurately with the help of smart contracts which eliminate all chances of human error.
Interoperability
Unique identity systems that are based on blockchain technology can work on different resources and services ensuring that identity verification is ubiquity through all industries.
Reduced Fraud
Since blockchain is known as a fraudulent alteration free technology, chances of identity fraud and theft are greatly reduced.
Conclusion
In summary, the verification of identity through blockchain technology is as secure and efficient as it is transparent.
The use of decentralized storage, complex cryptographic methods, and user control enhances privacy and decreases the chances of identity theft or fraud.
Even though it is still evolving, verification of identity through blockchain has the capability of transforming numerous industries while effortlessly solving contempory identity management issues.
