Blockchain In Digital Identity

Reshaping the existing Digital Identity Management through Blockchain

Blockchain in digital identity renders the ability for both individuals and organizations to manage and control the digital identity information without relying on external parties.


The digitalized world has opened doors for many business opportunities as well as security threats with sensitive data. Even though the data maintenance teams take great efforts to render top-notch security features, the hackers put on sharp tricks to counterfeit the data in servers. The existing blockchain digital identity management system has many pitfalls like identity theft, KYC verification by individual authorities, username & passcode for separate profiles, centralization. The main reason for this data theft is the centralization of information. 

Decentralizing and authorizing the invaders of the information is the solution to prevent data thefts! Here come’s the superhero for the future era! Blockchain!

In this blog, post let’s chit-chat on the blockchain, blockchain digital identity solutions working model in real-time, its use-cases, and benefits!

A Glimpse At Blockchain!

Blockchain, being the distributed ledger technology, records transactions in chronological order with the timestamp. The data blocks in the network are encrypted with cryptographic codes. Every data block possesses four components: Hash, Pre-hash, Nounce, and data. The hash and pre-hash values of the blockchain are responsible for its immutability, traceability, and encryptions. These cryptographic hashes are generated by the SHA-256 algorithm by which the input string is converted into alphanumeric code that can not be decoded to the original data. 

Now, you have an idea of blockchain chain architecture! Let’s take a tour of the blockchain digital identity solutions working model in real-time!

How Does Blockchain Digital Identity Solutions Work?- A Keen Look Around?

Let’s get into the real-time blockchain digital identity solutions working model with an instance of the process!

Downloading The Blockchain Digital Identity Management App By Individual

An individual wishing to perform the KYC process or verify the identity for loans, immigration, legal processes, education, and other activities can download the application from the play store. Once the user opens the software, it generates the profile and Unique Globalized ID. 

Completing The Profile

Once the Globalised Unique ID is generated, the user needs to upload the authorized government ID proofs like Voter ID, Passport, Certificates, and other documents as per the requirements of the identity-verifying authority. The blockchain digital identity application will store the documents in the interplanetary file system as hashes. 

The application’s smart contract will extract the files whenever required for the verification process. Users can have complete control over their personal information and authorize third-parties to access the data with awareness. 

Automated Smart Contract Protocols To Manipulate Trust Score

The identity management system can be architectured with business logic to generate the trust score of the individual. The trust-score will be manipulated based on uploaded documents, appropriateness, frequent usage. On the other hand, the trust score decreases when there are frequent data changes or when some authorized organizations did not approve the documents. 

Identity Sharing

Whenever there is a requirement to verify the individual’s identity, a notification will be sent to the user. The person can authorize the organizations or third-parties to access the documents in the IPFS(interplanetary file system). 

The user can trace back the purpose and utilization of identity information and documents. Blockchain network stores the individual user’s transactions with the third-parties, thereby identifying the misuse of identity information. 

Now, let’s get into the use-cases of blockchain digital identity solutions!

Use-Cases Of Blockchain Digital Identity Solutions In Various Sectors

The personal identity information of individuals is shared for various purposes. With Blockchain digital identity solutions, the organizations can verify the individual’s identity and the collaterals with reduced efforts. 

Now, let’s get into the details about the use-cases of blockchain and digital identity sharing in various sectors!

 Fintech Industry

In the fintech industry, the existing process to open a savings account is even tedious by submitting several documents. This, in turn, may be a threat to personal information stored on centralized servers. Moreover, for loan approvals, the banking sector opts for the collaterals like property documents and other sensitive information. When these are stored in centralized repositories, it is prone to vulnerabilities. 

When the blockchain digital identity management system is on its legs, then the loan approvals, opening of accounts can be processed within minutes. The miner nodes can verify the user’s authenticity and then process the requirement as soon as possible. 

 Travel & Tourism

A traveler must go through a series of processes like documentaries and security checks when he is on-boarding at the airport. Instead, a blockchain digital identity management system can verify travelers’ trustworthiness in just a few seconds with a globalized unique ID. Right from booking tickets, the process can be streamlined with a Unique identity number of Blockchain digital identity app.

 Governmental Organizations

Whenever we step into governmental organizations, they opt for various authorized documents issued by different departments. In these cases, we can’t carry these sensitive physical identities everywhere. In these cases, the professionals can verify the digital identity and documents with the globalized ID powered by blockchain applications. The entire community of individuals, third-parties, and governmental organizations can leverage users’ digital identity from the blockchain app with authorization. 

The blockchain digital identity system’s whole agenda is to share the personal identity information with the user’s consent. Blockchain digital identity solutions render the world with 

  • Self-sovereign identity,
  • Ergonomic identity verification process,
  • Decentralized login-solutions,
  • Hack-proof,
  • Traceable information sharing,
  • Desired information sharing with trusted third-parties.

If you wish to boost humanity’s identity privacy, let’s join together to make blockchain digital identity solution! To know more about blockchain space, stay connected!

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