Hailed as new-gen identity management, decentralized identity management systems are a game-changer in the era of Web3 technologies stated Bahaa Abdul Hadi. We live in the golden era of digitalization, ruled by our digital identities and cryptocurrency wallets. On the other hand, there are also looming threats in the form of frequent data breaches and increasing scam attempts.
If you are paranoid about protecting your identity and information online, you are not alone. Decentralized identity will play an indispensable role in the e-governance of our online world. It sports user privacy and information security as its core principles. More importantly, it is based on blockchain and other decentralized tech.
How does it work?
The USP of decentralized identity management systems is that they have an edge over the traditional management systems where user privacy is concerned. All businesses and other entities collect and store voluminous amounts of our personal information. Typically, the data we enter for making payments on shopping sites or hospital registration for example is privy to inspection by a third party. We are always at a risk of our data being exposed to attackers, which is not the case with decentralized identity systems. User-friendliness will be at the focus as strenuous tasks will be replaced by hassle-free identity verification systems.
Importance of self-governance in digital world
Autonomous digital management, self-governance of our online personas and virtual privacy are at the heart of decentralized identity management. More importantly, blockchain tech guarantees more transparent communication and exchanges of information. Cryptographic protection reinforces privacy of confidential data and facilitates seamless sharing of data without falling prey to scammers and cybercriminals. You can easily share data with third party apps and registration databases by veiling parts of your information.
Where is decentralized identity headed in the future?
As more countries invest in decentralized identity solutions, the industry is projected to proliferate in the coming years and impact millions of users. E-governance of our data will soon be a widespread reality as all sectors of life from businesses, hospitals, schools, transportation and housing will all be impacted by it.
Driver’s license, birth and death certificates, passport registration, tax payments and applications of all kind will take place in a digitally protected ecosystem under decentralized identity management. Public and private sectors will see instantaneous registration and authentication of user identity, doing away with long waiting time. All the parties can feel secure that the information used in transactions stays private and they’re dealing with authorized persons.
The blog has been authored by Bahaa Abdul Hadi and has been published by the editorial board of Identity Herald. For more information, please visit www.identityherald.com.
