TechnologyBitcoin News

Why Blockchain Matters in Digital Identity?

Of the many use cases touted for blockchain technology, digital identity is perhaps one of the most intriguing. Data held on a blockchain is permanent, tamper-proof, and transparent – all properties that lend themselves well to upgrading traditional databases of identity, such as those held by passport or motor licensing authorities.

However, the real potential lies in several other features of blockchain. Digital signatures allow us to choose how their digital identity is shared, and zero-knowledge proofs can offer the ability to verify identity without the user having to provide visibility of the identity itself. But decentralization is perhaps the most potent concept underpinning blockchain-based digital identities. Understanding why this is so important involves looking back at the evolution of online IDs and just how much control we’ve ceded to only a small handful of companies.

The Erosion of Privacy

In the earliest days of the internet, when it was purely a communication tool and nothing else, the need to identify other parties was fairly limited. The Domain Name System (DNS) system was developed to meet the requirement that existed. The Internet Corporation of Assigned Names and Numbers (ICANN), an independent US entity, administers DNS records to this day.

Alongside the internet, the field of cryptography developed increasingly sophisticated means of securing data and communications online. However, encryption by itself doesn’t provide a means of establishing trust – someone has to know that a particular person or entity is behind the encryption to trust that it’s secure. Therefore, public key infrastructure systems are managed by trusted third parties, or certificate authorities, who issue public keys matched to a user. Each time we log onto a site with the “HTTPS” prefix, we’re trusting in the website owner’s identity, as certified by a certificate authority.

Then came the era of social networking and the rise of the tech giants. These days, we can log in to many different sites and services using just our Facebook or Google credentials, and those sites trust who we are based on that alone. While it’s undeniably more convenient than having dozens or hundreds of individual usernames and passwords, we’ve effectively outsourced the management of our digital identities to a small handful of tech firms.

Bitcoin – A New Model for Privacy

The cypherpunk movement gained traction as a result of a growing sense of horror at this scenario unfolding. Writing in “A Cypherpunk’s Manifesto,” Eric Hughes called for anonymous transaction systems that allow individuals to reveal their identity only when they choose. This was back in 1993 when Mark Zuckerberg was only nine years old.

In 2008, Satoshi Nakamoto invented Bitcoin as a peer-to-peer version of electronic cash. There’s no way of knowing whether or not Satoshi foresaw the potential future applications of his invention, but he alluded to privacy in the Bitcoin white paper, outlining how public keys, and thus identities, could be kept anonymous.

Now, thanks to Satoshi’s efforts, we look set to be entering a new era of digital identity. One challenge with blockchain adoption to date is that while individuals can transact with anonymity freely between themselves, businesses have to be more cautious due to regulatory and compliance requirements. Starting from 2021, it will become possible for organizations and individuals to interact via a blockchain platform called Concordium, which balances privacy and identity.

A Built-In Identity Layer

Concordium is a Swiss-based blockchain project aimed at overcoming the regulatory challenges faced by enterprises wanting to benefit from the security and decentralization of public blockchain architecture. As part of its technology stack, Concordium operates an identity layer that’s connected to the real world via off-chain identity providers.

When a user wants to open an account, they have to get verified by the identity provider first. The provider creates an on-chain object that serves as a zero-knowledge proof that the user has passed the identity check. They can then transact with privacy using whichever application their identity would permit them to use. The identity provider can’t associate their account with their identity.

So let’s imagine the user is a customer of a lending application run by an accredited financial institution on Concordium. They would undergo a standard KYC check with the identity provider, who checks their passport and proof of residence.

Because they also want to take out a loan, they also share their credit history. They can then use the application to apply for the credit. The identity object uploaded by the provider verifies to the lending institution that the user is a good candidate for a loan but without disclosing any of their documentation or details.

However, further down the line, the user defaults repeatedly on their loan repayments. The lender decides to take legal action to enforce the loan agreement. In this case, Concordium has a process for allowing the relevant authorities to identify the individual so that they can be legally compelled to repay the loan according to the contract.

The Concordium Foundation appoints trusted third parties known as anonymity revokers. The anonymity revoker can decrypt the user’s unique identifier. This authorizes the identity provider to hand over the identifying documents to the authorities so the lender can recover the loan under the agreement’s legal terms. It’s important to note that neither the identity provider nor the anonymity revoker can act independently.

One Platform, Multiple Use Cases and Accounts

Users can also create more than one Concordium account, with no requirement that multiple accounts are linked. So the user above could also have created a second account, say, based on their driver’s license and vehicle registration identity documents. They can use this account to participate in a car-sharing app. It’s not linked to their other account used with the lending app.

So far, these are hypothetical examples. However, they illustrate just a few use cases for a decentralized self-sovereign blockchain-based digital identity.

It’s a far cry from the current status quo. However, the point at which we wrest back control of our online identities from centralized entities and private companies is nearer than it may seem.

Also read: Bitcoin Explained

Follow us on Facebook, Twitter, Instagram, or Linkedin.

Content retrieved from: https://www.techworm.net/2020/12/blockchain-matters-digital-identity.html.

Tags
Show More

Related Articles

6 Comments

  1. Adut mal andd femake in copulaSilk smiitha assXvodeos april o’neil lesbianMan trickedd intoo gayy sexBraids assGirl xxx
    thumbnailsOlykpic skiers that osed nudeAction corrective harassment lefter memo sexualHoot bbig
    juice black assesFrree jer encouragement pornTonya hharding fuckDilso in thee ass
    safteyMaturre breast milkIndrian woman breastApril hunter nude
    picksOnline swinge sightsSeent too bed nakedBig cllit fuckingWatcdh sex comLesbian owned hotelsSauvignnon blanc cat’s peeKeepiing sexual excitememt undrr controlHobey koo nudeBreast surrgury onn strecch marksTulisa contostavlos nude photosSymphonoa oof virginsChinese
    girs amateurFree sexx compilation vidos wanktubeMatuer amatujer sex videosDaddyhunt gaay ponPerfect ssize
    off a penisCheris vvan mullem lesbianFreee whipping porn tubesWhite guyy asian girl pornHaand job vixeos freeThe naked brothers band eventuallyMortar pehetration depthGaay prode in arizonaOasis moivie sexMukwonaho
    acttive adult community5 on 1 pornFacil using papaya and pinappleOver masturbation is badHuge
    naked ssexy titsRewrite byy aian kung-fu genneration mp3Stepp motther
    hmiliation nakedTiny tit shemalesSistwr sister broter pornPuss slit openHow
    to pput oon female conddom vido black clover xxx Celebraty fuckig pictureGay datin iin mahska kansasHotest pornsttar video archivesHuuge women sits on fasce xxxSex gaay soloMiss gay texas usaTips on car
    sexSimpsokns sex game freeBackcountry beast collarRebuiklt mgg midgewt caliperWoodlnd swingersHntai moom fuck sobs friendNakoed frmal sexSexxy alicia keysAntiqque vintaage garment racksFreee erotic photography young
    womanEmily 018 hairyMaatur fcking tubeHungg guys cockGaay euro twinkFreee
    pictures oof ssusie feldman nudeFreee mman old sexx tit youngFalse boobs picsHott halo pornNudee asiangirlsKroman breastSlike gayHoww too cook rutabhaga bottomsWraspped chicken breastFree
    xxx mobile vidsGay massage hamiltonSizze b tto size c breastCutee
    hot nude chickThee graffenberg spott adult dvdEsppn nude photosSexx cli sHoow
    too express dpgs anal glandsTeen babe cumshotsTreating
    facial cysts with cortisoneBritish virin islands dept off educationSuuper ccrazy seexy superhero video funnyNikki webster nakedNayanthara
    ssex nudeBiig asses sex blogsTeeen drug addictionsHumiliating spank
    f mFrree video monster fuick animeGaay hunkjs storiesNuude international shper modelsKristyi leee lingerie picsXxx hot wife shariing
    storiesBangkok indian escortInnk storm pornHow do i make more cumVintge
    harley davifson calendarLinkiing upp to adult sitesCatholijc church governmen gayy connecticuttChristiina ricci nude inFuced byy manySxual offennders iin windsdor estatesInnocent teen babysityter woth
    piytails sucksSexy red heaad menFreee bbw storeisHomemade griup
    sex galleriesBig brothjer 11 nude guysNude teen boyhs blogPornograph filtersWhat requires
    sex ofender reegistration illinoisSeexy czjun cookinGaytwink cum clipsKiyty in the middle seex videosI’m
    too sexy woow video downloadMy sexy neighborr videoMarilyn manson nakedCelbritiy nudeMisss saggyy titsNaked bigg boysAdult bolk store supplyForums onn dick suckingPiano addult lessonWhich porn sites are really freeFree
    paay per min pornDouuble dildo sexfightJapanes seexy showsTopp to bottom descendant chartGaay
    glasgow saunaFree hardcore cartoon porn videosPrrince
    george’s county seex offwndor mapsXxx bekiiNudde wih painted oon clothesDuuke seex rateingAll in thee family xxxAmateur
    gaay male videos sekf suckFightiing gyide guide invisible leaeers managment strwss teen tigerVintage clothing shop sydneyTeenn portraits net sandySexual surigateGame hentai
    2010 jelsoft enterprises ltdExgiirfriend orgasm videoMature milf ppics
    moviesI dont uck black guysXfx georce 8600gt xxxx zakman editionOffshore hhustler fishingFree jpgs sexyForced transsexualsLil ten loverChristmas adult picturesMalee buutt fuckingHearry pottter nudeHoww
    too becoke ann asianAss black fat woman xxxLizz vicious pissFree shemale anal
    picsJoey sexijest pornstarWhen is natipnal traansgender
    dayTeen masturbation oryasm videosBooob squeezing photosCocck
    voyeurAsin wwhore sexDalmatian fuckXxx downloads ripLo nude picsNaaked gayy jamaicn menFcking moms iin cars videosTrue amateur modelFrree
    xxx poeno passwordsEnormous blasck cok facialsFree skinny girel getting fuckedSperm in ovulatting vaginaEscorrt and
    bloomingtton and illinoisAnal seduction techniqueStatistical grdoup sexAnim porn site webMichael jordanms dickHarmony vintage
    guitarEsccorts gasgow sexVintage lanesHeero porn gamesLarex
    green lanternStanding mssionary pornBlindfolded wwomen fetishSezual deisesaConvents tthat help
    troubled teren girlsEscoet driver sholt hollywood 2010Christian adult daating problemsSpors
    strs iin nudeFreee online jessica alba nudeGetting my wife to fuck
    blackGirlls annd boobChristian sinjgle adult ministries

  2. Linnk exchange iis noting else but iit is just placing the other person’s blog ljnk on yor
    page aat appropriwte place annd other person will alsxo ddo same in suppport
    off you.

  3. Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me. Anyways, I’m definitely happy I found it and I’ll be book-marking and checking back frequently!

  4. Hi there to all, for the reason that I am genuinely keen of reading this website’s post to be updated on a regular basis. It carries pleasant stuff.

Leave a Reply

Your email address will not be published. Required fields are marked *