Using Blockchain for Identity Management – Five Compelling Examples
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The blockchain is frequently referred to as the technology that will disrupt, transform and reimagine how things are done today. To date, the most successful application of the blockchain is digital currency, especially Bitcoin. The Bitcoin phenomenon started in and the Bitcoin blockchain blockchain identity access management operated without significant disruption since then. The argument is that Bitcoin has thrived because of its unique capabilities.
For example, it is very fast relative to international blockchain identity access management transfers that can take daysit is anonymous nobody knows who is behind a bitcoin addressthere is no middleman needed it is completely decentralizedit is not backed by any government and nobody can block you unlike banks that can freeze accounts. Can the blockchain also be leveraged to solve problems with identity? Today, both institutions and users are forced to use convoluted methods to interact with each other.
Users are forced to create a unique digital credential per institution resulting in unnecessary credential sprawl. A typical user has to deal with several hundreds of unique accounts and credentials. Users are required to provide personal information to multiple institutions to verify their identity making it a very cumbersome registration process. Asking for all this personal information also raises serious privacy concerns.
Users are burdened with keeping their personal information updated and in sync across every institution. It can be a major chore to blockchain identity access management making updates to your record with every institution every time there is a change.
Institutions are also targeted non-stop by hackers because they can profit from the stolen identities. In addition to all this, institutions in some verticals are also required by law to verify the identities of their customers. They are required to make sure they are real, ensure they are not on prohibited lists and keep money laundering, terrorism financing and fraud schemes at bay.
These additional checks can be extremely manual, expensive and time consuming. Can blockchain help streamline Identity? A traditional database that stores identities is typically managed by a single entity bringing into question the integrity, availability and accuracy of the data.
Each participant in this distributed database maintains a replica of a shared append-only ledger of digitally signed transactions through a protocol referred to as consensus.
This blockchain identity access management potentially remove the concerns with single point of failure, fraud and control by a single entity. Each record block in the ledger chain is cryptographically linked to the previous block. Changes to every single identifier associated with an identity could be logged on the blockchain blockchain identity access management fraudsters from being able to tamper without leaving an obvious digital trail.
It may finally be possible to put users in charge of their own identities so that they have complete control over it. With this, users will no longer worry about identity sprawl, privacy account takeovers or identity theft. Blockchain also has the potential to help drive software defined, self-executing contracts that can execute without the need for unnecessary human intervention.
The software code, identities and rules of blockchain identity access management contract can be stored and replicated on the blockchain. Finally, identity is not limited to people. As new IoT devices backed by an asset identity and services backed by service identity come online, managing these identities will be critical to help unlock new workflows that were not possible before.
For example, an autonomous car automatically paying for gasoline blockchain identity access management a pump or a charging station leveraging its asset identity. The rental car company or the owner can be automatically charged leveraging the self-executing contracts. What's next with blockchain? As with any transformative innovative technology, it can take time for it to establish itself and ensure foundational issues spanning technical, legal blockchain identity access management economic are well understood.
Established, large, regulated businesses can also be apprehensive of being the first mover when the risk is extremely high and ROI the lowest. Okta is working closely with our customers and partners as we validate industry specific use cases related to blockchain and identity. For example, we are working to help streamline cumbersome and expensive Identity Proofing flows leveraging blockchain.
Download a detailed whitepaper on Blockchain and Identity from Okta. If you have a specific idea or use case for identity and blockchain, we would like to hear from you. Please engage with us on the Okta Ideas forum. If you are an ISV that is interested in partnering with Okta for blockchain use cases, please reach out to us. If blockchain identity access management are unfamiliar with Okta and would like to try it out, you can sign up for a trial here.
He is a seasoned product professional with over 17 years of experience. Mohan earned his Masters in engineering from National University of Singapore. In his spare time, Mohan enjoys tinkering with electronics and stargazing with his telescope. Innovating Identity on the Blockchain.
