Our world today is undeniably digital. We live in an age where technology is transforming everything. From artificial intelligence to blockchain digital technologies are redefining how we live and work. We store much of our life digitally. The centralized identity system is fading. Blockchain enables more secure management and storage of digital identity by providing a unified and interoperable infrastructure.
Digital Identity is a relationship between human and their digital presence. Digital identity is information about an individual or an organization that exists online. Digital identity may include username, password, date of birth, medical history, etc. In the traditional identity system, third parties such as banks or governments have your data where our data is not secure and we don’t know how they use it. Blockchain can replace traditional systems with a highly trusted mechanism for managing identities. Blockchain can empower users to have greater control over their identity, and organizations can use the information only with the customer’s consent. Your digital identity on the blockchain is characterized by the different tokens and transactions that distinguish you as an individual. Let’s have a look at the cryptocurrency projects focused on enhancing digital identity.
Top 5 Cryptocurrency Projects Focused On Enhancing Digital Identity
- Cardano
Cardano uses blockchain technology to manage digital identities. Their approach involves creating a self-sovereign identity. Cardano gives users full control over their personal data, allowing them to decide who has access to it and how it is used. The Cardano blockchain uses cryptographic methods to ensure the security and privacy of user data, providing decentralized and tamper-proof verification. Cardano blockchain’s goal is to provide universal useability for decentralized identity. Atala PRISM, a self-sovereign identity platform based on the Cardano blockchain, is a scalable, secure and self-sufficient project. In Atala PRISM users are fully responsible for accessing and utilizing their personal information and owning their identity.
- Hyperledger
Hyperledger Foundation created the Hyperledger Indy blockchain network. This network was created for decentralized digital identity management. The platform offers several reusable components that are used to build digital identities for entities. Hyperledgr Indy is an open-source, decentralized identity management platform for individuals and organizations to have complete control over their digital identities. It provides a secure and scalable infrastructure to manage and store decentralized identity information, enabling the creation of self-sovereign identities that can be used across various applications and services. HyperLedger Indy uses blockchain technology and cryptographic algorithms to ensure the privacy and security of identity information.
- Civic
Civic is a blockchain-based ecosystem, Civic pass is the Civic protocol that helps businesses and individuals control and protect their personal information with blockchain-based identity verification solutions that aim to reduce identity theft and fraud. Civic uses blockchain technology to protect user identities through Social Security Number tracking. Civic service notifies when their Social Security Number is used, allowing people to be sure about the legitimacy of the transaction in real time. Civic also offers additional features to protect users’ identity such as credit report alerting, ID theft recovery insurance and access to 24/7 fraud support.
- Idina
Idina is a proof-of-person decentralized identity system that creates an inclusive non-authoritative digital identity system, creates a relationship of trust with credible institutions and entities and allows them to attest the identifications of citizens during events. Idina collects data in an independent and distributed way and ensures safety and access to essential services for all citizens.
- Ontology
Ontology provides decentralized identity and data solutions for fostering privacy and security in the Web3 ecosystem. It’s a fast, flexible and low-cost blockchain designed for people and enterprises to use and build solutions according to their regulatory compliance needs. ONT ID, the main Ontology component, is the protocol’s decentralized identity framework that offers users control over their well-encrypted personal data. The ONTO wallet natively integrated with the ONT ID provides a secure and user-controlled environment for managing digital identity.
Related: 5 Futuristic Predictions for the Cryptocurrency Industry
Decentralized digital identity platforms offer significant user control, security and privacy advantages. Users gain greater control over their personal information, deciding who has access. In centralized identity systems, the entity providing the identity is generally responsible for the security of the identity data. In a decentralized identity framework, security becomes the responsibility of the user, who may decide to implement his or her own security measures.
Frequently Asked Questions (FAQs)
What is the use of digital identity?
A digital identity contains certain unique identifiers that allow systems to know who or what they are interacting with.
What are the components of digital identity?
A digital identity comprises identifiers and attributes.
Why do we need blockchain for digital identity?
Blockchain could be used to solve current identity problems such as inaccessibility, data insecurity and fraudulent identities.
How are decentralized identities secured?
Decentralized identities are secured through cryptography, where private keys are known only to the owner.
What is Self-Sovereign Identity?
Self-Sovereign Identity is a concept where individuals and organizations can store their identity data on their devices without relying on a centralized identity system.