The Benefits of Blockchain Technology

Blockchain can enhance trust, security, and privacy in a range of digital transactions. Find out how...

- 

Most early discussions of blockchain technology reverted around Bitcoin and other cryptocurrencies. Today, this is just a partial understanding of the force that blockchain is. In essence, blockchain provides decentralised and distributed ledger systems, allowing transparent, secure, and immutable records to be kept without some central authority — in short, it offers a pathway to register almost anything and have it validated outside incumbent institutions.

From supply chains and the creation of digital identities to healthcare and environmental sustainability, several industries have witnessed the disruptive changes brought about by blockchain.

Digital identity management with blockchain

Identity management and authentication are critical in a digital world.

Traditional methods such as passwords, personal identification numbers (PINs) and centralised identity databases are vulnerable to breaches, theft and misuse. Blockchain, in contrast, enables open source digital identity systems that help people to own their personal information and free it from centralised authorities such as governments or corporations — it uses a distributed ledger to create an encrypted record of sensitive personal information

With blockchain, end users get a unique private key to affirm their identity instead of generating many passwords for different sites, which helps them enjoy both security and privacy. At the same time, every modification to the identity data is traceable because of the transparency of blockchain. This helps eliminate the use of multiple passwords, reduces identity theft risks, and simplifies tasks such as banking, healthcare, and even voting. It also empowers less privileged groups of people, who do not have conventional identification forms, to have a safe and verifiable digital identity.