Have you ever wondered how great it would be if you did not have to share your PII (personal identification information) to access every digital website? Besides being tiring and invasive, there’s also a higher chance that your data could be stolen or sold to the highest bidder. However, decentralized identity could be a potential solution to this problem. Wondering how? Let’s find out.
What is Decentralized Identity
As the name suggests, decentralized identity is hosted on the decentralized ledger technology (DLT) or blockchain technology. That sounds good, but what is it?
Well, a decentralized identity is an identity management system that offers individuals the ultimate control over their identity and credentials without depending on a centralized body. This system works not just for individuals but also organizations and things as it lets them interact with others in a transparent and secure manner.
Based on blockchain, decentralized identity will serve as a verifiable proof of existence and allow individuals and organizations to access the stored data using a smart device connected to the internet.
Though individuals are thought to benefit the most from this, it’s also beneficial for the organizations as they won’t have to store user information in a centralized location, minimizing the risks of data breach. This will not only save them from unwarranted headaches but also positively impact their bottom line.
Benefits of decentralized identity
Decentralized identity can benefit individuals, developers, and organizations in multiple ways, including:
1) Easier application development: Through decentralized identity, developers can focus on building user-centric applications that don’t rely on breachable passwords to authenticate users.
2) Heightened security: Since individual data isn’t stored on centralized servers and is secured on blockchain, all data would be encrypted and thus, really challenging to hack into. Moreover, it isn’t possible to decrypt the stolen data without having access to the public and private keys.
3) Tamper-proof and immutable: Blockchain-based decentralized identifiers will be tamper-proof and unalterable.
4) Transparency: Blockchain-based identifiers would give individuals more control over their data and enable them to verify how their data is stored and what it is used for.
5) Verifiable credentials: Blockchain-based decentralized identity system will make it easier for organizations to authenticate and validate credentials. For instance, it would be possible for employers to validate the shortlisted candidate’s employment or education history instantly before they hire them, saving them time, money, and effort.
6) Single point of failure won’t impact the entire network: Decentralized identity systems are superior to centralized systems as there is no thing like a data blackout. Even if a single node is compromised or suffers from hardware issues, it won’t adversely impact the data stored on the network.
Besides these advantages, decentralized identifiers make data portability easier and simpler. Based on similar principles, ProofEasy, a blockchain and QR code-based platform makes it easier for its users to upload, store, and share their data securely. Further, it supports the generation of digital certificates and the verification of credentials instantly. The best part? ProofEasy’s customizable API layer makes it easy for businesses to integrate the solution with their existing systems.