Transform Digital Identity into trusted identity with Blockchain

Transform Digital Identity into trusted identity with Blockchain

The digital world is ramping up at a great pace as it is gaining prominence all across the world in various business segments. The digital world has brought a new concept of digital identity which has proven a boon for almost every business segment, whether it is academic qualification certificates or employee ID. But the security of the identity of digital channels is at stake, as it is easier for the intruders to trespass the digital channel and hack your privacy. As a solution, most businesses are now turning towards blockchain development companies in Dubai and ensuring the security of their digital solutions to serve in a much more effective manner.

Now the question is “why do businesses need identity and how does it work for them?”

For companies:

Customers are the backbone of every company, whether it is a service-based company or product-based. Most companies collect and store sensitive data of their customers for future use and the security of this data is their prior responsibility. Digital storage of data is always a threat for the company creating business risks. Traditionally, only businesses at higher risk of data theft were taking highly expensive data security investing huge capital in it. But now, with the emergence of blockchain technology, most companies are shifting their focus from data-centric solutions to privacy-centric solutions.

For IoT devices:

IoT is a technology that interconnects devices for better and automated performance. A study says that all across the world almost 7 billion devices are connected to date (i.e. in the year 2022) which is expected to reach almost 22 billion by the end of the year 2025, which means in just three years the count of connected devices will be more than triple the current sum. Most IoT devices are only responsible for connecting devices but they don’t have any capability to store and secure data. Top IoT system management companies in India have already started addressing these problems and finding out apt solutions with the potential of blockchain technology.

For individuals:

An individual’s identity is an integral part of society and one must have a defined and standardized way to prove one’s identity and possessions too. Several basic and sensitive data of an individual are included. Security has to be kept the priority because theft of such personal data may allow any other person to impersonate someone’s identity. Blockchain is having a solution to store personal data as well.

Several documents are considered to be the identification of an individual but most of the folks don’t keep it handy or don’t have any certain proof of their identification in physical terms due to several reasons. Here, generating a digital identity help those individuals to claim their personality.

Why blockchain for identity?


Approx. 1.1 billion people all across this world are not having any identity proof because it requires a lot of cumbersome paperwork which is hectic along with time taking. The individuals who are deprived of their identity proof are maximum below the poverty line and are not familiar with the procedure required and also can’t afford to invest too much time going door to door for generating identity proof. Most of these folks are not even fortunate to get enrolled in any school, get any government services, or apply for jobs. But almost 90% of these unfortunate lives along with the fortunate ones are having personal smartphones and this opportunity is utilized by blockchain technology for transforming the digital identity into a trusted identity and giving identification to even those who were not having any physical one.

Data insecurity:

Now, most the folks are having digital identities that are stored in the centralized database of government which is highly vulnerable and subject to theft. Most of these centralized databases are software operated generating a possibility of several loopholes. Blockchain has got a solution for this vulnerable centralized data storage solution and got robustness to the security.

Fraud identities:

It’s been a decade since people started generating digital presence over various platforms and digital portals, but almost every folk creates a new identity on every next portal with different usernames and other credentials. There is no standardized way to maintain the same identity over various digital platforms and the same factor generates a void for fake identity generation also. As smartphones are very sophisticated and subjected to online theft, a robust channel for the security of the identity is the need of the hour.

Blockchain has addressed this issue by the means of cryptography, which is capable of generating a new identity management system based on decentralized identifiers.

What is a decentralized identifier?

It is a pseudo identifier given to any person, object, or company which is secured by a private key. These keys are highly secured and only the owner has the authority to prove the ownership of the entity. Using the private keys of the entity identity, the user can control or use it. There is no limitation on the number of identities held by a person on the decentralized platform. For each entity, the user can create an identity and can keep it secured with a cryptographically protected password.

How are decentralized identities secured?

Cryptography is that magic wand that generates robust security over your decentralized identity by converting the verified data into QR codes. The identity of a user is verified by presenting attested proof of ownership document which is being associated with the decentralized identifiers. If both match, then the access is granted to the user.

Use case of blockchain in identity management:

Self-sovereign identity:

It is an approach that allows the user to store their digital identity with the security measure of their choice without relying on the computer networks. Any piece of information you can use as a validator for your identity data security.

Data monetization:

Data started gaining importance in the digital world and hence most the folks now started searching for the owners of the generated data, but self-sovereignty has put a restriction on front of the people to access the data owned by other people. This has given a rise to the data monetization concept. Data monetization can be simply described as the use of personal data for computable income.

What are the benefits of decentralized identity?

EU General Data Protection Regulation has been strengthened to make the identification of entities and humans more tangible than ever and remove the possibility of theft and identity fraud. Hence, the regulatory authorities are looking for more robust solutions to make their citizen’s information more protective and identifiable. Blockchain is the only solution to convert the digital identity into a trusted identity to date. There are several benefits of opting blockchain for to reinforce the digital identities and a few of those are listed below:

  • Decentralized public key infrastructure:

DPKI is the foundation of the decentralized identity offered by blockchain, as it enables the users to store their data on a tamper-proof platform secured with the immutable distributed ledger, encrypted keys, and verification of the identity holder. DPKI is the best possible replacement for centralized storage solutions which were expensive and also were including an intermediatory with the entire authority of the data.

  • Decentralized storage:

 Decentralized storage is much more secure than centralized servers. The existing blockchain platform uses cryptography in combination with distributed data storage system which is enabling the blockchain enthusiastic to develop such platforms which can remove intermediatory and maintain the highest data integrity. Being self-owned data, the user is freer to use his data and employ it on different platforms for various purposes.

  • Manageability and control:

In a centralized storage system, the complete security of the data was depending on the entity offering storage solutions. Whereas, decentralized platforms not only offer the most robust security but also offer the responsibility to the user to keep their data secure using passwords and other security measures. If setting your security measure on the decentralized platform appears to be a hectic job for you, then you can also opt to outsource these responsibilities to password manager apps or digital bank vaults.


Now digital identity is gaining prominence all across the globe and serving all major purposes of human and object identification. But the security of the digital identity was at higher risk, but the blockchain is offering the most robust solution as an option to convert a digital identity into a trusted identity with the decentralized platform. There are several benefits offered by the decentralized solution for getting a trusted platform for storing digital identity, such as decentralized public key infrastructure, decentralized storage, easy manageability and control over data, etc. If you are also looking for the development of blockchain development to reinforce the digital identity with decentralized solutions then you can get hitched with the top blockchain app developers in Bangalore and get the most appropriate solutions for your requirements.

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