One of the most repetitive and resource intensive effort in today’s heavily digitized world is the ask for ‘proof of identity’. Both consumers as well as employees in most organizations are constantly required to prove their identity in a paper intensive process, duplicating their effort.
In the current scenario, Identity Management assumes great significance. This system enables identification of individuals in a system and controls their access to resources within that periphery. A key element that is emerging as a critical component to strengthen this complex process is Blockchain technology. With its concept of distributed ledgers, Blockchain can effectively overcome most of the issues that organizations face in crucial areas such as ‘Know your customer’ (KYC).
Blockchain successfully offsets various challenges in the current set up. It includes aspects such as centralized databases, which are a limiting factor to share data needed to complete identity verifications, integration of their systems with a third party data provider, duplication of data identity etc.
When Identity Management is moved to the blockchain, users are able to choose what information to provide and who will be the recipient of the same. Once a user’s identity is registered on blockchain, he/she can reuse the identification for other services as well. Blockchain facilitates a wide gamut of applications for organizations.
- Faster Onboarding: Personalized data can be accessed through blockchain which would streamline customer onboarding
- Security: Using encryption data would only be available to accredited organizations and to whom access has been granted.
- Usability: Identity certified by accredited organizations can be used by other organizations and other verticals within the same organization without duplicating the entire process.
- Immutable data: The Identity data on the network cannot be lost and is available to be accessed and updated at any point of time
This disruptive technology serves as a catalyst in a myriad of sectors as well.
Read More- BI