Digital Identities allow us to access computer or applications or automated services. It contains information which may involve personal data, healthcare data, personally identifiable information (PII), trade secrets or intellectual property. Digital identity is a part of our daily lives as it lets a user interact with any kind of online platform. In this blog, I will elaborate how blockchain backs up the digital identity management and what benefits it offers in the process of online identity management.
However, the data collected on an online platform is sensitive and confidential. Digital identity plays a crucial role for many businesses, people interacting with countless resources or online transactions. Your personal data can be used by hackers to commit fraud. The 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.
Digital identity management is a broad term, when it has relevance to personal data security, refers to checking user’s true identity with a network, application or system. It controls user’s access to resources within those online systems and applications.
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 get collected from our name, age, address, social and financial records etc. 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. Your confidential data is being used by XYZ and you are in a vulnerable situation. You can’t stop it from getting accessible by others.
Blockchain has the ability to track where is our data or where it is used. In case, anyone has been indulged in the practice of fraud by using our 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.
Using blockchain, users get improved privacy protection and they can take control of their own data. As the paperwork is reduced, there will be fast access to the data.
For businesses, it helps to minimize risks and cost of data breach. Also,
Efficient compliance management and monitoring can be done.
In a nutshell, 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 is allowed to pick and choose who they opt to provide their information to.