Data fraud is growing by the day, and fraudsters are getting bolder by the day, manipulating an individual’s personal data for their gain. However, you can beat fraudsters at their own game if you leverage decentralized digital identity. Decentralized identity solutions, like verifiable credentials, are a great way to protect user data and keep sensitive information from falling into the wrong hands.
How Can Decentralized Identity Blockchain Protect User Data?
Blockchain decentralization benefits are far-reaching. For starters, data stored through decentralized identity solutions is nearly fraud free, as it’s incredibly difficult to steal information from a distributed ledger. This is because all the information stored on a blockchain is encrypted and secured cryptographically.
These properties make it difficult for bad actors to steal user data and use it for their personal gain. Moreover, if the fraudster manages to steal the information, they won’t be able to decrypt it. This is because data is encrypted using the issuer’s private key and can only be decrypted using the corresponding public key.
Additionally, since a large volume of information doesn’t get stored on an organization’s centralized server, your PII (personally identifiable information) has less chance of being stolen or misused. Further, if you use decentralized identity management wallets, you can safely store your information and share them with the organizations of individuals you want per your discretion.
Better yet, decentralized identity solutions, like verifiable credentials, make it easier to store and share your data with individuals the way you want, and is incredibly simple for them to verify its authenticity. The best part, though? With verifiable credentials, none of your personal information is stored on a blockchain network.
Instead only the document’s unique hash value is stored on the blockchain. If any part of the digital document is altered (even by the issuer), the unique hash value of the document changes and user’s can see that the document has been tampered with. Plus, if you use trusted platforms like ProofEasy to issue verifiable credentials, they’re easy to authenticate, as all the verifier has to do is scan the associated QR code to check the document’s legitimacy.
Want to get started on your verifiable credential journey, and experience the best of both worlds with blockchain and QR code technology? Sign up on ProofEasy today! Our solution comes with a customizable API so you can integrate it with your existing IT infrastructure without having to overhaul it. You don’t have to worry about a learning curve or the high costs. The solution is extremely intuitive and user-friendly while being easy on the pockets.