6 Use Cases for Decentralized Identity in 2024

decentralized blockchain applications

Decentralized identity allows users to maintain privacy, as they have complete control over their personally identifiable information (PII) and the way it’s shared instead of relying on a centralized system. The lack of a central database also makes it difficult for hackers to steal personal information and use them for their gain. However, what are the use cases for decentralized identity in 2024? Let’s find out.

6 Popular Decentralized Identity Use Cases

Though there are innumerable use cases of blockchain identity technology, the following are the most common use cases for decentralized identities.

1. Allows individuals control over personal data

The most prominent use case of decentralized blockchain identity is for individuals. Individuals get to define how and with whom their personal data is stored and shared.

2. Simplifies KYC requirements for financial organizations

KYC (know your customer) has become a must in recent years for financial organizations to know their customers better and minimize instances of money laundering.  Decentralized identity can simplify and automate KYC authentication, saving an organization’s time, money, and effort.

3. Brings transparency to supply chain

A transparent and streamlined supply chain is paramount for businesses across industries. Alas, this seldom comes to pass, given the number of people employed in the entire process. However, decentralized identity can bring transparency to the chain.

If each product in the chain is given a unique decentralized identity, it’ll become easier to trace it, verify its authenticity, and define its journey, from origin to consumption.

4. Promotes issuance of blockchain-backed digital certificates

Decentralized identity can be used to generate blockchain-backed digital certificates that are immutable, aka immune to instances of data fraud. This isn’t a pipe-dream. Several platforms offer this service.

To illustrate, you can issue verifiable credentials within seconds after signing up on ProofEasy. The solution is budget-friendly, 100% customizable, and uses patented blockchain and QR code technology to ensure your document is secure and easily verifiable.

5. Makes managing employee IDs easier

Effectively managing employee IDs can be difficult, especially if you’re dealing with a significant number. The problem gets worse if you have offices around the world and constantly need to issue new IDs for in-house employees transferring or working out of another location for a few days, weeks, or months.

This is where decentralized identities come into the picture. The blockchain identity technology would be recognized globally (across all your offices) and would allow employees to access data after verification. This won’t just make your life easier but also help you save money you’d have spent on centralized databases.

6. Digital verification and authentication won’t remain a dream

Decentralized identities will support the verification and authentication of digital documents. The process would be instant and save the verifier time, effort, and money. This way organizations won’t have to bypass verification entirely and deal with costly problems or lawsuits later.

Continuing our previous example, ProofEasy-generated documents have a unique QR code that can be scanned using a regular scanning app to verify a document’s authenticity within seconds.