Profiles of people in social networks, accounts on websites - all this applies to their Digital Identity. Avatars, real names and nicknames, addresses and interests form a digital profile of the person on the Internet. Digital identity means accessing and creating your accounts, and trust in interacting with people and services on the Internet. In our time, information exchange is becoming important for the functioning of enterprises and states, and it is necessary that not only personalities, but businesses and goods can also be identified by special systems.
The problems associated with digital identity become more serious. The lack of manageability and security that entails centralized data storage makes digital profiles a convenient tool for scammers and an inconvenient and confusing tangle for users.
Real-world Identity and Digital Identity
Digital identification is becoming the norm as more and more governments digitize services and transactions. Any hitch with documents can be a disaster for people, cutting off their ability to make even simple bank transactions. This also includes problems with official employment, housing and social services, medicine and education. Digital identification serves as a confirmation for financial transactions, even in the case of payments from or to citizens of the developing countries, where people often don’t have access to traditional bank services.
Full coverage of the population with digital identities and policies aimed at stimulating absorption and reducing risks can be a powerful key to comprehensive economic growth, in addition to significant non-economic benefits.
Identification should also be applied to items and goods. As people have ID and other documents, both goods and businesses must have their own IDs, which are also digitized and tracked. Transparency and business accountability when using special labels and tracking systems cuts off the pathways for fraud and forging.
Decentralization and Security
It is important that the digitized data remains secure in all cases. For personal identification, it is important not only to trust the data, but also provide its privacy and security. Lack of security for storing personal data is leakage, compromising, and fraud. As a result, organizations lose their reputation, receive fines and suffer heavy losses.
Trust is an essential requirement for storing large amounts of constantly updated data. Decentralized data storage systems, coupled with one-way encryption, give users confidence in data privacy and security. Decentralized authentication, unlike conventional, does not just store data on the server, but represents a peer-to-peer information exchange.
When the establishment, verification and control of identity is decentralized, a core component is needed that will provide trust. This is a blockchain technology that constantly verifies data in all nodes and allows you to instantly identify false or compromised information.
This level of security will allow users to make financial transactions and at the same time leave their personal data hidden.
Business Digital Identities
Not only personal accounts, but also business accounts suffer from lack of manageability and security.
Today, organizations must constantly balance security and transparency, both in their work and in interactions with other companies and consumers. Private and state enterprises can use their digital identity as:
• commercial or government suppliers of goods and services, interacting with consumers or beneficiaries;
• employers interacting with employees;
• governments interacting with citizens;
• asset registers, interacting with individual asset owners.
Tools for Digital Identification
There are already systems that offer tools
to create digital accounts for individuals and organizations. FCE Blockchain offers DIGID
, a blockchain-based data verification, storage and exchange system. Personal data of companies is not entered into the blockchain, as if they change or become obsolete, the record in the blockchain will not be removed. To do this, each entry receives a hash, and is recognized and verified by a hash comparison. So, the data can remain hidden while being verified through the system. Blockchain as a base for building a digital identity infrastructure offers great advantages:
• Accountability. Every entry and change are reflected in the system.
• Security. Distributed storage prevents unauthorized changes in information in the system.
• Availability. All you need to create a digital account is to access the Internet.
• Manageability. Managing a digital account is easier than paper documents.
FCE Blockchain helps create and maintain decentralized identity networks that are easy to integrate with existing business models. The IoT department works on equipment based on the FCE blockchain for independent data collection and deployment directly in the blockchain. FCE develops a device that will independently identify the user.
is a necessary process now. When the world becomes digital, the importance of security and truthfulness becomes many times more important. Blockchain offers opportunities for businesses, states and individuals to safely and conveniently store and track information. And data security means a high reputation and trust and confidence in the future.