A Taxonomic Approach to Understanding Emerging Blockchain Identity Management Systems

Blockchain-based identity management for IoT devices provides the assurance that users have full control over the data collected by IoT devices. In addition, blockchain identity management solutions for IoT devices also offer promising security for preventing hackers against accessing sensitive information during transfer between IoT devices. The final aspect transformed by blockchain in digital identity management would obviously point out towards privacy. Regulators throughout the world are advocating for safeguarding privacy of sensitive and personal information of citizens. Therefore, blockchain identity management solutions such as combining digital signature with blockchain encryption can offer inherent privacy in design. Attaching digital signatures to all transactions of users also ensures that they are not vulnerable to tampering.

Thus, even if an unauthorized party has access to the Blockchain, they will not be able to read any confidential information since all transactions are encrypted. In other words, the Blockchain provides a secure way of managing identities and ensuring privacy. The ledger is part of the decentralized architecture of the internet, where every node in the chain initiates communication with every other node in the chain.

Use-cases of identity management

There is an increasing awareness regarding data security and efficient processes. Traditionally, for applying for a loan or opening a new bank account, an individual must submit various identity documents. The manual verification takes a lot of time to complete and delays the grant of a loan to the individual.

Unicsoft have ample expertise working with blockchain systems for identity and access management. Verifiable credentials are used instead of physical IDs such as Passport, an ID card, driver’s license, etc. The team ofBlockchain Experts at LeewayHertz can provide you with extensive knowledge of how the attributes of the blockchain will bring transformation in the identity management industry. A user can achieve a higher trust score by uploading multiple documents on the app. We will explain how the trust score can help an organization verify the user’s authenticity.

Here are the key advantages that blockchain technology may bring to identity and access management. At the same time, the innovative security approach makes any hacks almost impossible. Any changes applied to individual blocks result in a change of all subsequent ones.

Managing Digital Identities and the Self Sovereign Identity of Individuals Using Blockchain Technology

There are three main roles in the proposed blockchain identity management system which are user, issuing authority and service provider. Users can register and manage their identity claims by having self-sovereign identity. Issuing authority will be responsible in verifying user’s registered identity claims to prove the validity of the claims.

On a broader scale, fake identities can also result in development and circulation of ‘fake news,’ which can pose formidable threats to society in general. I agree to the processing of my personal data for the purpose to receive newsletters. Only with well-established experience in building such systems will developers be able to meet your project’s blockchain-based IM system requirements. It’s responsible for the nodes network and the transactions and data agreement. Statista, 155,8 million records were exposed in 2020, with more than a thousand data breaches. It ensures the privacy of the transactions for the parties connected to the blockchain.

When registries such as land titles, marriage records, and criminal records, are maintained with blockchain, it can help eliminate fraud and corruption. Land titles, for example, can be legally and securely transferred with multiparty digital signatures in minutes compared to what would conventionally be a very slow process. The system automatically updates verified data to all of the stakeholders in the network and acts https://globalcloudteam.com/ as a trusted single source of truth that is maintained by the blockchain. An issuer has to digitally sign a Verifiable Credential which is secured with the use of cryptography and can’t be falsified. Their public DID is verifiable on the blockchain which enables data accountability. A blockchain uses consensus mechanisms to help keep inaccurate or potentially fraudulent information transactions off the blockchain.

IBM Digital Credentials provides individuals and organizations with a security-rich hub for credentials accumulated over a lifetime. No personal identification documents of the users will be stored in a centralized server. All the documents that identify users get stored on their devices backed by IPFS, making them safe from mass data breaches.

Lack of Data Control and Ownership

A digital identity is the total information about an individual or organization that exists online. Data that forms a digital identity includes usernames, buying history, ID number, and search history. Almost all of our digital identities are connected through devices, services, and apps that have dominantly used centralized and federated identity systems.

The radical shift into the digital age has also created formidable new approaches to identity theft. Therefore, hackers, scammers, and other malicious agents are leveraging the new tricks of identity theft for robbing people of their money. Furthermore, conventional identity management systems relying on paper-based evidence present concerns such as misappropriation of identity. Work with IBM to leverage this secure and trusted blockchain-based platform to build the unique capabilities you need to issue, manage and verify digital credentials.

Users can ask the organization to verify its identity across the border as well. Users might require using the system regularly to keep the trust score improved and maintained. The app will extract the personal information from these IDs to do self-certification of his/her details. After downloading the app in mobile phones, a user will create a profile on the app. Every product is given a DID that tracks the status from production to the market.

Potentially, blockchain is a perfect alternative to traditional identity management. Let’s dive deeper into the topic for a more comprehensive look at blockchain-based identity management. Such a negative tendency is related to the issues that traditional identity management systems currently experience. Lack of privacy, insecurity and the inevitable risk of being hacked or breached make these systems unreliable and outdated in many ways. Traditionally, you have to submit multiple identity documents for completing the entire manual verification process, taking weeks to process the loan or credit.

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Apart from the safety and reliability benefits, another benefit of using Blockchain technology is its ability to control access to identities. Through the use of biometric verification, an authorized person will be able to access an account. BIM is compatible with diverse technologies such as Digital certificates, Public Key Infrastructure , Distributed Ledger Technology , Mobile Platforms, and Web Ledger Technology. The concept of BIM is derived from the idea that individuals can establish a unique identity based on an encrypted public key and a series of cryptosystems. Although ID-based payment systems and subscription services are still in their infancy, blockchain offers a tremendous amount of potential.

• The KYC portal is termed as ‘Blockpass KYC Connect’ and can help businesses comply with strict KYC regulations in various regulated industries.
• Moreover, the system uses smart contracts to enable controlled data disclosure.
• As the name implies, permissioned networks allow only computers, or nodes, with the proper authorization to join the network and verify transactions.
• Presently, there are billions of IoT-enabled devices streaming highly valuable data, with many more to join the ecosystem soon.
• Blockchain identity management benefits also point out the lack of a single point of failure.
• An identity attribute is a piece of information about an identity, and a credential is a collection of much digital identity attributes .

In contrast, the blockchain identity management system returns control over personal information to the users. Thus, people can manage it as they wish, setting security measurements and storing it autonomously off-chain. Dock enables organizations and individuals to create and share verified data. An organization can save time and effort if it switches from a traditional identity management system to a blockchain-based one. Also, it is essential to properly integrate blockchain technology within the organization’s functioning to take full advantage of digital identity management. There are various areas where individuals and organizations can apply blockchain-based identity management solutions to full advantage.

Why choose Unicsoft to build your blockchain IM system?

Internet of Things or IoT is invading almost every aspect of our life at a faster scale. Devices such as fitness trackers, smart appliances, and remote patient monitoring systems enabled with IoT collect data and transfer it to the related service providers. Presently, there are billions of IoT-enabled devices streaming highly valuable data, with many more to join the ecosystem soon.

In this way, a blockchain is the foundation for immutable ledgers, or records of transactions that cannot be altered, deleted, or destroyed. This is why blockchains are also known as a distributed ledger technology . If used correctly, it may be possible to determine the truth of an individual’s sovereign identity. The majority of today’s digital identity management solutions are ineffective and antiquated.

Let’s build together Identity Management project on Blockchain with us

This system provides a platform that will enable organizations to derive their own unique identity identities. They can benefit from better data security, enhanced user management, improved time management, and reduced costs. By combining the advantages of these technologies, we can expect a new era of enterprise identity management.

For example, someone can confirm that they are at least 18 years old to buy alcohol without needing to reveal their birth date. They are often stored on centralized systems that can be vulnerable to data breaches and cyber attacks. Once the transaction blocks get added on the ledger, information on the blockchain can’t be changed, backdated, or altered by anyone which creates a permanent, unalterable network. This maintains the integrity and accuracy of the data while establishing and sustaining trust between stakeholders. Blockchain technology makes information about identity verifiable and auditable in seconds. Before diving into how blockchain is used in identity management, it’s important to first understand the key features of blockchain and how it works.

Three factors that can help in building a trust score are

It aims to build an infrastructure where multiple devices can link together and securely communicate using public and private networks. It offers users more robust and customizable experiences for all types of digital identities. Users are increasingly searching for a decentralized web where they don’t have to provide their personally identifiable information to access services. This, however, necessitates the use of a suitable decentralized digital identity management solution.