Blockchain Technology Brings Benefits in Digital Identity Development
Since the advent of blockchain technology, individuals and groups have found various use cases of the booming technology including finance, data, logistics, and security. But one of the most revolutionized ideas is utilizing blockchain’s immutable capabilities to create IDs for humans. The idea came into life during Changpeng “CZ” Zhao’s visit to the island country of Palau where he started the digital residency program.Issues With Traditional IDs
There is a complexity in confirming the legitimacy of Traditional paper-based IDs across different systems. People have been using fake ids since their advent to leverage the various benefits. However, as blockchain entered the scenario, it offered authorities the chance of issuing verifiable certificates and IDs at the same time making sure the speed, scalability, and security of the identity management system.Different Kinds of Blockchain-based digital IDs
The sub ecosystems have been formed surrounding the use of blockchain technology as the strings of innovation hit the industry over the last decade.
The booming technology was found to be quite suited for various applications while some enthusiasts called NFTs as just a tool to represent real-world objects which including intellectual and physical assets.
However, proving them wrong, government organizations have recently started testing of NFTs for ID-ing citizens as a method to cut down on operational costs.Blockchain-based Digital IDs: Advantages
According to Martis, one of the biggest benefits of blockchain-based digital IDs is self-sovereignty. This translates to the fact that blockchain actually since it empowers users to share selective or partial information with their service providers rather than transferring their complete identity to government identities.
In addition, blockchain-based IDs eliminate the misuse of information. According to the experts, a trustless system without any involvement from third parties will be developed. Some of the major benefits of blockchain-based IDs include verifiability, traceability, and uniqueness since blockchain IDs can not be replicated on the distributed ledger.Blockchain-based Digital IDs Challenges
For the mainstream adoption of blockchain technology, all the organizations and leaders would have to help in overcoming the major challenges surrounding it. Lack of education in the masses and supportive regulatory practices are needed for overcoming these challenges.
Source : thecoinrepublic