Get Smarted at Identity Management with Blockchain Technology
Most business organizations lose about 5% of their revenues each year due to fraud that goes undetected for a long time and is often very hard to uncover. Identity management is crucial and it is important to have more control on the personal information and businesses should be able to manage it easily.
But with hackers using various techniques to gain access to personal data, massive data breaches are becoming a regular case. Thus, security, usability and privacy of data is at the core of concern and organizations are looking for secured technology that can help them have complete control on their important data security.
But a new technology is there for digital identity management where business owners can have greater control of their personal information and where identity issuers can work together in a better manner. Our discussion is related to the blockchain technology that can be applied to any data that includes personal information.
It is used to deal with some of the major challenges related to personal, business or government data and information. Blockchain is a distributed ledger that helps to eliminate people from maliciously accessing or altering any important data. Every time a transaction is done, a majority of the network has to verify its validity. This helps in identity management. Since every block contains a timestamp and also transaction data, it locks the content and prevents any unauthorized access.
How It Works and Helps in Identity Management?
With millions of people having faced identity issues while carrying out transactions or accessing vital data, it is very important that right identification is easily available to those who need it. Businesses and innovators are jumping on the idea of blockchain and this has in fact helped financial organizations and various other sectors to easily manage identity. An excellent way to manage this is through the transparency with the use of blockchain. With decentralized identity, it is easy to reduce the risk by associating the credentials that are used for in-person interactions, where it may be difficult to verify who is on the other side.
Blockchain allows point to point cryptographic exchanges of identity on the network and it can be applied to any data online and helps you to choose segments that you are willing to share and also prevent any access if you are willing to hide.
Can Blockchain Really Reduce Fraud?
Many critics are of the opinion that the blockchain technology can help in eliminating fraud. Since it makes it extremely difficult for the hackers to gain access and tamper with the data, it makes your identity safe and secured. With blockchain, whenever you make any data transaction, you can easily track the end location. This increase the ability to trace any illegal operations, but hackers are also trying to find out serious methods that can handle the identity management potential of blockchain.
The Future of Identity Management:
It is true that blockchain technology has brought about a revolution with regards to identity management and the technology will help to track where the data is used in case someone has used the information by fraud. Using blockchain for identity management will allow the users to have complete control of their data and by tracking how the information is distributed, people can pick and choose who they want to provide access to their information.
Thus to conclude, it can be said that using this technology will surely result in more effective online services and also help in reducing cyber-crimes and illegal access to crucial information. The process will also reduce long waiting hours and instead of filling various forms, users can easily grant permissions to their central data storage.