Can Blockchain Make Identity And Access Management More Secure?

With DIDs and verifiable credentials — ensured through consensus mechanisms and the underlying functionalities of a specific blockchain platform — it becomes possible to seamlessly move identities that were tied to one system to another without any issues. This DID data porting also allows for reusable credentials all the while maintaining Know Your Customer requirements; especially useful in customer onboarding. Many identity and authentication standards exist, including roles, attributes, keys and entitlements. These must conform with often nonexistent standards for blockchain technologies and interoperability across chains. Blockchain has facilitated the so-called self-sovereign identity, which is inherently unalterable and more secure than traditional identity systems.

Similarly, the blockchain gives us the ability to design a distributed identity system in trustless environment, however, the performance of blockchain based systems still needs to be measured and quantified. Evaluating the performance of a blockchain system, in essence, refers to evaluating scalability of the distributed systems, which needs a holistic consideration about the cost and Quality of Service . As blockchain continuously gains interest in academia, some researchers propose their analysis framework for blockchain systems. For example, Gervais et al. analyzed proof-of-work based blockchain systems such as Bitcoin, Litecoin, and Ethereum with different operational parameters.

With data driving the world today, digital identity is critical to most business and social transactions. Decentralized PKI enables everyone to create or anchor cryptographic keys on Blockchain Identity Management the Blockchain in a tamper-proof and chronologically ordered way. These keys are used to allow others to verify digital signatures, or encrypt data to the respective identity holder.

The Law Of Identity In The Philosophy Of Logic

This technology had to be secure, flexible, and accurate to support cryptocurrency, and its design is predicated on providing decentralized and immutable record keeping. Cumbersome identification paperwork processes, expenses, lack of access, and the simple lack of knowledge around personal identity are primary roadblocks that keep over a billion individuals outside of traditional identification systems. Without possessing physical identities, one cannot enroll in school, apply for jobs, get a passport, or access many governmental services. Conversely, 60% of the 2.7 billion unbanked people already own mobile phones, which paves the way for blockchain-based mobile identity solutions which better suit the needs of vulnerable citizens. There are already many different blockchain-powered identity-as-a-service solutions in the market leveraging the robustness of the technology and its ability to secure, protect and maintain data.

blockchain for digital identity management

Being decentralised is one of the most effective ways to counter planned hacks and attacks. The storing of data in one centralised spot becomes a beacon for nefarious actors. Hackers can target information stores and hijack the data causing breaches and in some cases hold it for ransom. Digital ecosystems enabler announced strengthened variants of its IZO Internet wide area network offering for global enterprises,…

Blockchain For Digital Identity

Before blockchains, privacy preserving is incomplete owing to the existence of centralized identity providers in that the identity information protection remains unsolved. Service accessors and service providers need to grant full trust to their identity providers. In other words, centralized identity providers could see activities between service accessors and service providers, which compromises the identity information privacy. Fortunately, the self-sovereign blockchain identity management is taking the control right of identities back to users from the third-party identity providers. Although users could have full control over their personal information in blockchain based identity management systems, the public blockchains can still expose some identity information. Privacy preserving has always been one of the hottest topics in blockchain industry.

  • This creates new business risks with the rise of user privacy-centric regulations such as GDPR and the shifting industry focus to corporate IT responsibility.
  • The cryptocurrency Bitcoin introduced blockchains as a form of a distributed ledger to document transactions in the Bitcoin network.
  • It involves the users storing their digital identities on their own devices and managing them on their own.
  • Blockchain enables DPKI by creating a tamper-proof and trusted medium to distribute the asymmetric verification and encryption keys of the identity holders.
  • Our naming protocol differs from its predecessors in that it has no concept of namespacing or subdomains at the consensus layer.

From there, individuals could monetize their personal data, for example, by renting it to AI training algorithms or choosing to sell their data to advertisers. Users would also have the option to keep their data hidden and protected from corporations or governments. Handshake is a UTXO-based blockchain protocol which manages the registration, renewal and transfer of DNS top-level domains . Our naming protocol differs from its predecessors in that it has no concept of namespacing or subdomains at the consensus layer. Our vision is to enable all people and organizations in the world to create and own their online identifiers, control their identity data and with whom they share that data. The Augmented Social Network is a proposal for a “next generation” online community that would strengthen the collaborative nature of the Internet, enhancing its ability to act as a public commons that engages citizens in civil society.

Dinh et al. proposed their evaluation framework for private blockchain systems, in which they analyzed blockchain systems from the consensus, data model, execution layer and application layer. They also quantified the system from specific metrics including throughput, latency, scalability and fault tolerance. However, these proposed evaluation metrics for blockchain systems still need to be adjusted due to the particularities of blockchain based identity management systems. For instance, most of the transactions are identity lookup operations, which could be designed for free offline transactions without fees in permissionless blockchain platforms such as Ethereum or Bitcoin. Onchain identity operations such as registration, revocation and update are quite rare compared to the offchain identity lookup operations.

They also define the structure of how transactions should be organized into blocks, mined, confirmed and stored. Mining is the mechanism that allows the blockchain to be decentralized and secure. Nakamoto introduced the concept of Proof of Work as a mining process to ensure consistency of transactions and solve the double spending problem in decentralized networks . With the PoW blockchain, however, there is no need for any kind of a trusted authority, such as a bank, to keep track of the money transfer, all members have their own tamper-proof copy of the blockchain ledger. In addition, the blockchain is simultaneously updated through the peer-to-peer network so all members can validate any transaction instantly.

Companies are accustomed to central and proprietary data storage infrastructure, effectively creating a honeypot for theft, breach, hacking, fraud and loss. This model exacerbates the power imbalance between identity credential holders and those seeking to use them, including the end user. Distributing identity verification and governance promises several efficiencies and individual and institutional benefits, but runs counter to the status quo for centralization. As more and more of our lives are spent online and the physical world grows ever more digital, the very notion of identity is changing dramatically. Authentication of who we are and how we are represented online has become paramount to both individuals and organizations. People want power over their identities and control over how and with whom their information is shared.

Nearly Half Of Companies Have Suffered A Data Breach In The Past Year: Survey

Blockchain-powered identity-as-a-service solutions work primarily on the basis of decentralised identifiers, identity management, and embedded encryption. This hands the power of a consumer’s digital identity back to them while simultaneously making it easier, and less invasive for the CSP to manage. Since the digital revolution began and we entered into Web 2.0, data became the oil of the internet. Distributed or centralized, IAM UX is the interface of digital identity, personal identification and control mechanisms for individuals’ data.

For example, it is not uncommon for a single organization to have tens of thousands of IoT devices, in contrast to the mere dozens or hundreds of traditional servers and user devices. Security frequently remains an afterthought to the already-taxing implementation of simple management capabilities at scale, evident with large-scale IoT hacking emerging as a vogue topic at top IT security conferences. Communication service providers are especially at risk as the notion of removing them from the equation is gaining momentum. Between smartphone manufacturers and Operating System Providers, there is a drive to reconnect the consumer with digital identity solutions and disintermediate the communications service provider companies. For as long as there have been shared resources in digital computing, digital ID and authentication have been.

For Telecommunications, size, scale, and streamlining of the blockchain platform is vitally important. It is with this in mind that Protokol’s enterprise-grade technology is well suited as a blockchain-powered identity-as-a-service provider. More so, CSPs can benefit from streamlined attestation where the data provided is verified as true and does not require any identity verification as a service. KYC compliance is also attested, and can be ported, adding peace of mind for the Telecom company. Less time and resources are needed to manage the data, and furthermore, there is little to no time or effort needed when it comes to potential data breaches. Identity-as-a-service leads to increased profitability for the companies while SSI is a fundamental change in the governance of data which empowers consumers.

blockchain for digital identity management

At its most basic level, identity is a collection of claims about a person, place or thing. For people, this usually consists of first and last name, date of birth, nationality, and some form of a national identifier such as passport number, social security number , driving license, etc. These data points are issued by centralized entities and are stored in centralized databases . Chen R., Bao F., Guo J. Trust-based service management for social internet of things systems.

How Is Blockchain Efficiently Used In Digital Identity Management?

This scandal also emerged at a time when there was an awakening to the need for data protection and the emergence of new regulations and rules, such as the GDPR. But, blockchain use cases in Telecom offers a perfect solution, and a way to seize the closing gap in the market. For data security, blockchain operates off a decentralised model to disseminate the information away from one centralized point that would be vulnerable to attack. It is also a technology based inherently on cryptography, and as such is immutable and unhackable at its core. Regulations surround individuals’ data, from the patchwork of international, federal and state data protection laws to specific areas such as biometrics.

blockchain for digital identity management

It becomes an impossible mission for humans to manage many digital identities (e.g., memorizing their corresponding passwords) by following the isolated IdM model. To deal with this problem, the centralized IdM model aims at detaching identity management from service provision, and allows several service providers to rely on the same identity provider . While the centralized IdM model reduces the number of user identities, users still require access to distributed services managed by different centralized IdM systems and security domains. The federated IdM model attempts to establish trust relationships between identity providers by which it becomes possible for users in one security domain to access services from another domain .

Blockchain For Identity Management: Implications To Consider

In the Isolated IdM model, identity providers have played a central roles as relying parties by providing subjects access to Internet services and resources maintained by a single security domain . When subjects decide to access Internet services, the first step is to register themselves to service providers and obtain digital identities with credentials from their security domain. Nevertheless, the rapidly proliferating of online services in various security domains incur the identity bloating.

Blockchain technology provides an infrastructure where data cannot be deleted, manipulated, or hacked due to the data being stored in blocks with fixed storage capacity and encryption. Incorporating digital identity with blockchain technology is crucial for the growth and viability of the digital economy. With such implementations, the level of bureaucracy is reduced while increasing the processing speed resulting in better interoperability between the sectors/departments. Many works in academic papers and IT industry are proposed to preserve the sensitive application data rather than identity information stored in identity providers. In most cases, identity providers and service providers are bounded together and they require some personal information to authenticate users. For instance, users may protect their location information from map service providers by disabling the location service, however, they ignore the leakage of their personal identity information by identity providers exposed to security vulnerabilities.

Protokols Enterprise Solution

Before DPKI, everyone had to buy or obtain digital certificates from traditional certificate authorities . A digital identity arises organically from the use of personal information on the web and from the shadow data created by the individual’s actions online. A digital identity may be a pseudonymous profile linked to the device’s IP address, for example, a randomly-generated unique ID. Data points that can help form a digital identity include usernames and passwords, drivers license number, online purchasing history, date of birth, online search activities, medical history, etc. Biometrics, Behavioral, Biographic are the modals that make up a person’s identity. Having a proper way to identify ourselves and our possessions enables us to create thriving societies and global markets.

Moreover, the concept of claims in blockchain IdMS essentially is an extension of relationships in the federated identity management model. Claims, as the endorsement relation from others, are indispensable in the trustless distributed blockchain based IdMS, since individuals still do not trust each other, even if they could verify the real identities with privacy concerns. Roughly speaking, digital identities facilitate communication among entities (e.g., human) and access to applications and services. From the human evolution perspective, the more complex social relations become, the more difficulties humans could tackle. The social attributes, which are inherently existing in human society, are indispensable for human beings. A social network is composed of social entities and social relationships between these social entities.

The identity and access management market is expected to grow from $8.09 billion in 2016 to $14.82 billion by 2021, representing a 12.9% CAGR. Connect with our team of blockchain experts to explore a solution for your organization. We help enterprises, governments, non-profits, and startups across the globe build, test, and deploy public and private blockchain solutions. Nitti M., Girau R., Atzori L. Trustworthiness management in the social internet of things. Individuals and collectives issue claims to each other using these blockchain identities. Basically, claims are the endorsement by other individuals or collectives, which could be governments, banks, universities or even friends.

Almost everyone is switching from the traditional identity management systems to Blockchain-based digital identity systems, which may develop to a greater extent in the near future, with many more advantages. As the technology matures, solutions will evolve and can achieve the best interfaces with robust security. The trust management is closely related to the identity and access control management framework. Although there is no consistent definition on trust , researchers recognize the importance of the trust management. Many schemes have been proposed to manage trust in the context of IoT in order to deal with misbehaving IoT devices. Reference presented a fuzzy reputation based trust management solution for IoT wireless sensor networks, in which they considered the packet forwarding/delivery ratio and energy consumption as the Quality of Services metrics to evaluate the trust relation.

Beneficial Solutions

This, in turn, means the user can both fully control access to the data without having to worry about access being revoked. Data under the user’s control makes the information more interoperable, allowing the user to employ data on multiple platforms, use the information for different purposes, and protect the user from being locked into one platform. In cryptography, private keys are known only to the owner, while public keys are disseminated widely.

This technology can replace traditional systems with a highly trusted mechanism of managing identities. And, with companies prioritizing cybersecurity, identity protection and compliance management, while customer experience is significantly compromised. Since the dawn of the Internet, identity management has been a key concern, with billions of dollars being spent on usability, security and privacy. Data Monetization refers to using personal data for quantifiable economic benefit. Data on its own has value, but insights derived from personally identifiable data substantially increases the value of the underlying data.

Performing strong, verified identity-based authentication for both workers and customers, eliminating the need for passwords, one-time codes, and more. Trusting no one and verifying everyone is a security measure businesses may not think to take, but this measure becomes the main gatekeeper with zero-trust identity. Puts control of your personal data back into your hands rather than being in the hands of industry giants.

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