The digitization of society is driving identity information digitization. As the volume of personal data, frequency of digital interactions, and risk of security threats increase, paper-based forms of identity are becoming very inconvenient. Identity and access management (IAM) technologies help to identify, authenticate and authorize those who access services or systems. IAM is an area in which various attempts have been made to use blockchain technology. For example, blockchain-based identity management platforms can tackle identity theft and fraudulent activity on credit reports.
Blockchain enables multiparty verification
Multiparty verification ensures that the control is implemented by a group of entities, governed by a network and owned by a joint venture or consortium. It’s a more efficient, yet complicated form of verification.
Public blockchain architectures and hybrid architectures transparency can threaten privacy principles, but with additional volumes of privacy engineering, more accessible distribution has the potential to improve financial inclusion and help enfranchise those unable to prove their identity.
A shared ledger could potentially create transparency in the timestamps of sources issuing identity attributes, as well as be useful for key lifecycle management. The experts believe that its use could assist with the verification and authenticity of certifications and hiring credentials.
How much information is needed to authenticate someone? Various DLT capabilities are able to minimize the amount of data required for verification.
As far as know your customer (KYC) is concerned, the IAM-blockchain convergence would not remove the need for the central authority but could offer greater efficiency for both individuals and banks.