Blockchain-Enabled Identity Management - The Brass Tacks
ANGEL SAYANI & HEATHER FLYNN March 25, 2022
Blockchain-Based Identity
Management: What Is It?
For the Identity and Access Maintenance (IAM)
sector, blockchain identity verification based on distributed ledger
technology offers a lot of potential, providing secure storage and
management of digital IDs for both businesses and end users. The
technology might be able to stop significant data infractions as
well as give people control over their digital identities (known as
self-sovereign identity).
The purported goal of blockchain
ID systems is to store credentials there. But there's a lot more to
it, as you'll discover in this tutorial.
Uptick of Self-Sovereign Identity
A digital identity that is controlled and managed by the user is referred to as a self-sovereign identity (SSI). Individuals' right to reveal various facets of their
identities in various contexts and domains is protected by SSI. In other words, customers—not the businesses whose questionnaires they fill out electronically in responsibility of how their data is utilised. Self-sovereign identities are disseminated on a blockchain network or kept locally on the user device.
"Blockchains abstract off the centre, but other technologies seek to automate workers on the fringe performing crappy tasks. Geeks adore this reorientation, while people dismiss it as a frivolous diversion. But since successful renderings demonstrate that blockchain, also known as decentralized ledger technology, will be groundbreaking, it is important to pay heed to how blockchain is expanding beyond just cryptocurrency."
- Angel Sayani
Mechanisms for Rating Reputations on Blockchain
The idea of an indelible reputation score system, which
might be used by credit intermediaries and others to vet individuals, has
emerged as a result of the usage of blockchain for the creation and storage of
digital identities. One firm, Shyft Network, is presently investigating a
blockchain-based identity system that allows KYC data embedding and base-layer
identity anonymization.
Shyft cleverly provides "creditability scores" to
persons and companies that reflect their reputation and trustworthiness. Shyft
is a public blockchain protocol with one basic guiding principle: "Data has
value and individuals deserve to be compensated for sharing it." Its goal is to
aggregate and integrate trust into data held on diverse ecosystems. In order to
accomplish this, the Network provides users with an interface that they can use
to observe and manage interactions with their data.
Automated Transactions and Daemon Wallets
Online banking hinges on consumers remembering their
login and password, and many banks also require account holders to utilise a
certain mobile device to ratify transactions. The bank must have all of these
components in order to confirm the identification of the account holder.
But in the realm of blockchain, private keys are employed to validate bitcoin
exchanges. The approval of transaction queries to and from blockchains, such as
the gaming console Enjin, is automated with the help of daemon cryptocurrencies.
Each blockchain transaction would need to be signed using a cryptocurrency
wallet if there weren't a daemon wallet.
The daemon wallet controls an
Ethereum address associated with an Enjin Platform identity to make this process
easier.
Digital Identity-Based Micropayments and Membership
You could access an article using a confirmed digital ID and then pay, in crypto or fractional reserve banking, for what you read instead of giving the publication your username and email address, which they will then retain on a central registry.
THE CONCLUSION
Apparently, we have a long way to go before digital ID systems can fully seize the opportunities of machine learning, AI, and blockchain.
In the years to come, blockchain-based identity management will be an exciting area of investigation with even more astounding, far-reaching solutions coming off the conveyer belt.
Cryptocurrency is now the most popular application for blockchain technology.
However, it has a wide range of additional applications, including licence fees tracking, data security, identity management, and electronic voting.
About the author
ANGEL SAYANI
AND
MS. HEATHER FLYNN
Heather Flynn Since the early 2000s, she has worked in various capacities as a computer programmer, network and server technician, and security analyst. She is also an experienced trainer, having delivered IT training online, in Australia, and in the Europe, on topics ranging from Microsoft enterprise products (Active Directory, Hyper-V, System Center Configuration Manager, and Azure) to Amazon Web Services, UNIX, Linux, security, and networking. She has recorded tech support videos for products such as Microsoft Azure, Amazon Web Services, and Microsoft System Center Configuration Manager and has documented videos covering various technical and AI subjects. She lives in New South Wales, and relishes spending time with her spouse, Ryan; their children, Faith, Trinity, Abigail, and Judith; and their baby dogs, Lora and Herbert.
