Information and Communication Technology Blockchain identity management: vital role in smart future

Blockchain identity management: vital role in smart future

Along with the digitization of all businesses, there has also been an increase in online fraud and identity theft, which has raised concerns about the security of consumer data. Another important reason why blockchain identity management systems are being implemented by all of the world's major corporations is to combat identity theft. 

In addition to the reduction in the number of compliance steps, the blockchain identity management system provides a better end-user experience by streamlining the process. Along with this, the growing demand for KYC simplification and self-sovereign identification is propelling the international market forward.

Importance of blockchain identity management?

  • Blockchain technology restructures transaction management by replacing intermediaries with encrypted digital records, which are stored on a decentralised network of computers. Blockchain also orchestrates all transactions and data across a blockchain network, which is made up of interconnected systems or groups of people, rather than being managed by a central intermediary. More importantly, because it does not actually store any personal data on the blockchain, it fosters trust between the parties, which helps to further ensure that the data and attestations for the digital identity blockchain management system are authentic. 

  • The blockchain network enables all participants to share and agree on critical business information and transactions, which is beneficial to everyone. Blockchain also provides information traceability to all of the people who are involved in the network, as well as faster transaction processing speed, which is a major factor driving the market's expansion.

Demand for privacy and security is on the rise.

Blockchains creates one centralized and shared intermediate for information and transaction and flow monitoring for numerous people involved in the blockchain network. Every participant included in the network has all the information related to transactions and product movements are part of that ledger. If any person tries to manipulate the data or commit fraud in the digital ledger that person is exploiting only its own ledger and will be taken out of sync.

The blockchain transactions and ledgers are encrypted. Moreover, each new transaction in the ledger creates a new block, which is linked back to the previous blocks. This makes it almost practically impossible to tamper with the created blocks. Furthermore, blockchain eradicates the verification and validity of the actual data, instead it allows to validate the proof directly through government sources. Hence, the authentication of a proof is based on the verifier’s decision of the reliability of the attester.

Final words: 

The expansion of e-commerce is also expected to contribute to the expansion of the blockchain identity management market, according to the forecast. During the forecast period, however, it is anticipated that a lack of awareness about blockchain technology will stifle the market's revenue growth. According to industry analysts, an increase in demand for increased scalability and transaction speed is expected to provide significant growth opportunities for the blockchain identity management market in the coming years.

Blockchain AI Market: 81.5% CAGR 

Projected Revenue: 13.25 billion from 2021 to 2027

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Published Date : July-2021