Digital Identity

What Is a Digital Identity?

A person's or entity's digital identity is the information they use to identify themselves to something like a computer or network. Various types of digital identities are already in common usage. 

The most visible of these is government identification, which can be used for a variety of purposes such as financial access, corporation registration, and, of course, surveillance. Customers can also use identification systems to transact online, sign in to digital services, and verify their identity to organizations such as employers.

Problems Related To Traditional Identity Systems

A number of common issues plague traditional identity systems. They can be unreachable (sometimes by design), insecure and vulnerable to assault, easily defrauded, and immensely fragmented. A lot of these issues can be addressed with blockchain technology. 

Deep tests are presently being undertaken into the use of blockchain for digital identification applications, and some of them are already in scale operation – for instance, a number of national governments are migrating their whole identity systems to blockchains.

Advantages of Blockchain-based Digital Identities

Blockchain-based digital IDs are considered especially valuable for the 11 billion people worldwide who lack identification evidence, frequently due to cost, complexity, or inaccessibility. Due to a lack of identification, many persons cannot access critical services such as banking. 

However, the growing use of mobile phones opens the door to the development of simplified, free blockchain-based identity solutions. Blockchain technology is far more secure than the digital identification systems utilized today. 

While it is now incredibly simple to a fake identity online, blockchain-based identification solutions provide ultimate trust in an identity's legitimacy due to the irreversible nature of blockchain-based recordkeeping.