The creation of Digital Identity holds paramount importance in view of the global crises of the current times. HashCash shows the way it establishes the same on its own network.
Among many up-and-coming use cases of blockchain technology, digital identity verification and management is apparently the most reassuring. 2018 alone has seen billions of people suffer from personal data breaches, around the globe. There is a dire need for fool-proof methods of storing, sharing, and verifying sensitive information. In this context, blockchain systems are expected to deliver robust and trusted systems that will not be compromised.
Why is Digital Identity Required?
As the world takes a turn for the ‘virtual’, a need for an apt identity is of great importance. Digital Identity is the key to solve the gravest of problems faced by nations related to the security and welfare of the citizens. This includes the possible solutions in the following cases:
- Providing citizen welfare measures
- Secured Payments for goods and services
- Enforcement of border control
- Efficient workforce management
- Prevention of Tax Evasion
Role of Blockchain in Digital Identity
When a record is added to the blockchain system, the authenticity of its content is verified by multiple nodes that comprise the network. In such an arrangement, the nodes of the network can be controlled by authorized agencies of governmental institutions responsible for the verification and validation of the digital records.
Five characteristic features of blockchain that make it the ideal choice of platform for Digital Identity as opposed to the more expensive alternatives offered by Biometrics, Machine Learning, Robotics Process Automation, and Big Data.
Trust- The Metadata used for communications in a blockchain-based system, is maintained in the decentralized ledger. The authenticity of the recorded information is verified by multiple nodes, through a consensus mechanism. This decentralization is particularly useful in the context of Digital Identities, especially when National Identifiers are used spanning multiple agencies.
Security- Blockchain technology is designed to hold data in an encrypted and immutable manner, secured through cryptography. Thus the ID is protected and traceable. Also, blockchain-based systems eliminate the vulnerability that comes with password protection.
Integrity- The benefit of this kind of identity system over conventional ones is the ability to validate and secure each identity across the nodes in the network. Though the data migrates across peer-to-peer networks, it is continuously reconciled and kept up to date. Also, the blockchain network does not allow a single point of failure, thus rendering it difficult for hackers to break the integrity of the data set.
Simplicity- A blockchain platform simplifies the process for each stakeholder involved:
- Identity Issuers: Automated issuance of digital identity – reduces time and eliminates error margin from manual interventions.
- Identity Verifiers: Customer onboarding and data verification are easier and cost-effective.
- Identity Owners: Blockchain steers away from centralized data management, so users gain control over their identity. It also enables users to build their own identity data for social media/payment transactions. This is termed as a “Self-Sovereign Digital Identity”.
Privacy- Regulators across the world demand privacy of citizen’s personal and sensitive information. Blockchain encryption coupled with digital signature ensures “Privacy by Design” through pseudonymization. Attaching the digital signature to all transactions carried out by the user makes it fail-safe as well.
Blockchain-Based Identity Platform by HashCash
A US-based software company, HashCash Consultants provides technical and security expertise and leverages the HashCash Cloud to establish a trusted identity. HashCash Consultants makes tools provided by W3C, DID and Verifiable Credentials, Oasis, Decentralized Identity Foundation (DIF), to build their business and identity solutions on. The global software development company strives to instill trust in processes like Know Your Customer (KYC) paired with decentralized identity to optimize costs through enhanced capabilities. Digital identity upgraded in the HashCash Network imbues trust, allows personal control, and ease of use of analog IDs to the Internet.
Permanent verifiable digital credentials make it easy for individuals and organizations to collect and carry. Individual identity holders may access to HashCash networks using their credentials any time they want.
En route Self-Sovereignty
Among the frontline use cases of decentralized and digital identity is the Self-Sovereignty. As the name suggests, it puts the control back with the people. Self-Sovereign Identity (SSI) is the concept that people and businesses should be able to store their own identity information on their own devices. They should be able to choose the pieces of information to share with validators instead of relying on any central repository of identity data. These identities could be created independent of nation-states, corporations, or global organizations.