The process of identity verification has the potential to be dramatically affected and transformed in a number of ways thanks to blockchain technology.
The following list includes some of the most significant ways that blockchain is anticipated to affect identity verification, as well as some of the trends and causes underlying these impacts:
Decentralized identity verification systems
The potential of blockchain to build decentralized networks—networks that can function without a central authority or middleman—is one of its primary strengths.
This could possibly upend the established identity verification approach, which frequently depends on a few businesses or governmental organizations to verify and authenticate identities.
Users may be able to maintain more control over their personal data and how it is used by using blockchain to build a decentralized system for identity verification. Users may also have more choice in terms of whose organizations they trust to verify their identity. It remains questionable if a non-governmental decentralized network of identity verification could meet regulatory standards and therefore be successful in the financial services industry that is heavily regulated.
People might get a say who gets the data and where it is stored
Blockchain can be used to develop “self-sovereign identification” systems, in which users have complete control over their own digital identities and can select which organizations they trust to authenticate and validate them. The danger of identity theft and other types of fraud may be decreased, and people may have better control over their personal data as a result. This also depends on the adoption and acceptance of such a system be regulatory entities.
Your curriculum vitae on a blockchain
Blockchain technology can be utilized to provide transparent and verifiable methods for evaluating an applicant’s credentials, which might potentially lower the risk of fraud and boost the hiring process’ efficiency. Employers may be able to more readily check the credentials of jobseekers by using blockchain to create a decentralized system for credential verification, while job candidates may be able to more easily sell their talents and qualifications to prospective employers.
Blockchain verified voting systems
Election accessibility and integrity could potentially be improved by using a blockchain based system to build safe and transparent online voting systems.
Governments and other organizations may be able to lower the risk of fraud and improve the transparency and accountability of the electoral process by using blockchain to develop a decentralized voting system.
Summary
In general, the use of blockchain for identity verification has the potential to challenge established verification methods, provide individuals more control over and ownership over their personal data, and boost trust and transparency across a variety of applications, and especially make verification more efficient.
Blockchain and other digital technologies are anticipated to be used by an increasing number of businesses, organizations and even nations to enhance their identity verification procedures and cater to the changing needs of their users and clients as the technology develops and is more generally accepted. Governments are typically slower to adopt new technologies, but this change could bring new innovations in e-governement, voting, registrations and much more and not only make the government more efficient and transparent but also could save a ton of taxpayers money.