As mentioned above, blockchain technology is truly revolutionary with regards to identity management. We live in the age where almost everything about our personal identity can be found on the web. Our online data footprints are extensive, combining everything about us from our name, age, financial history, work history, addresses and social records.
Each piece of information comes together to develop our online profile. As it stands, we have little influence over how our data is used because it’s not accessible to us. We can’t see who has access to our data let alone how our data is used.
Right now we’re in a position where data controllers are largely unaccountable and are free to share our data with third party companies. Likewise, we’re also in a vulnerable position when it comes to fraud, because we can’t see where our data has been used until it’s too late.
Blockchain technology will enable us to track where our data is used so if someone is fraudulently using our information we’ll be able to react. All our data will be stored in a centralized location offering a clear transaction history to help identify unauthorized usage.
In a nutshell, using blockchain as an identity management solution allows the user to take control of their own data. By controlling and tracking how their information is distributed, citizens are able to pick and choose who they opt to provide their information to.
Reimagining the Future
At its core, blockchain technology offers us the opportunity to take control over the circulation of our personal data and centralize it. Whenever we put data online, blockchain will be able to take it and compile in one location. This means the user could file taxes without having to manually put information into each and every account they own.
The use of such technology will result in much more efficient online services. With the subjects permission, companies from car insurance to mortgage lenders will be able to obtain data on credit, title and insurance information in a more efficient way. Today our identity data is decentralized with multiple steps required to prove our identity.
Instead of waiting hours, the process could be reduced to minutes (it goes without saying paperwork would be reduced). Rather than spending hours online filling out extensive forms, users will be able to simply grant permission to their central data storage.