Benefits of Digital Identity Management With Blockchain

Digital identities essentially enable us to access computers or applications or automated services. They contain information that may, for instance, involve personal data, healthcare data, personally identifiable information (PII), trade secrets, or intellectual property. Now, digital identity is a part of our daily lives. It lets users interact with any kind of online platform. Indeed, digital identity plays a crucial role for many businesses and people interacting with countless resources or online transactions.  But, your personal data remains vulnerable, to threats, hacks, and fraud. Indeed, cybersecurity risks are becoming rampant all around the world and data breaches occur daily.  Putting a stop to a data breach is the highest or second-highest priority for IT security investing for 54% of the organizations.

What is Digital Identity Management?

Digital identity management is a broad term, when it has relevance to personal data security, refers to checking a user's true identity with a network, application, or system.  It controls user's access to resources within those online systems and applications.

Blockchain For Digital Identity Management

Blockchain technology has a tremendous power to revolutionize online identity management. Today, we are a part of an era where everything is becoming digitized and can be searched on the internet. A huge amount of personal data comprising our name, age, address, social and financial records, etc remain accessible to third-parties. All this information adds up to our online profile. Unfortunately, we don’t hold control over this data. As well as, we are even unaware of the fact that how it is used and who has access to our personal data. The people who control our data can share it with third-party companies. That’s why cyber crimes and frauds scare us. XYZ is using your confidential data. Now, you are in a vulnerable situation. You can’t stop it from getting accessible by others.

Blockchain can track where is our data, who used it, etc. In case, anyone tries to fraud by using your personal data, you can take action immediately. Data is stored in a decentralized manner so that a clear history of transactions can be seen by the people connected to a peer to peer network.

Benefits for Consumers

Using blockchain, users get privacy protection and they can take control of their own data. As the paperwork reduces as well, fast access to data becomes reality.

Benefits for Businesses

For businesses, it helps to minimize the risks and cost of a data breach, while also provides efficient compliance management and monitoring. Undoubtedly, blockchain powers digital identity management by allowing the user to take great control over their personal data. You can control and track all of your data, where it is or where it is located. Also, a user picks and chooses who they opt to provide their information to.