Although some people in life do an extremely convincing job of indicating otherwise, all humans have an identity. This identity comes in many forms, and as modern life has progressed, the ways in which people can identify have multiplied. Technology has now made it easier for people to explore and share their identities.
But, at some point in the not-so-distant past, the internet overtook people’s ability to manage their identities online. Companies, notably the big data giants, have become the new gatekeepers. As the world enters a more data-conscious era, innovators in the tech industry believe that blockchain technology could be the solution.
One of the most common goals across all blockchain-based identity projects is to put data back into the hands of those who created it. However, a decentralized identity network would look very different from the way data is gleaned now.
Decentralization and encryption are key to securing personal data on blockchains. Instead of anonymous companies scooping up data once it is created, blockchain identity systems would store data on encrypted and decentralized networks. From there, users could grant limited access to third parties using keys.
But, as anyone with a casual interest in tech will know, blockchain technology is cited as the miracle cure to most of society’s technological woes. It is expensive, difficult to explain to a regular person and, crucially, hard for companies to determine how to make it profitable. But that hasn’t stopped a significant number of use cases being developed and rolled out worldwide.
Payment and identity are closely linked. For hackers, compromising someone’s online identity, whether through password cracking or unlocking a large centralized database of personal details, is the digital equivalent of a gold mine. People’s online identities are also often attached to their financial details.
Unfortunately for those whose details are leaked or hacked, online…