Decentralized Identity is a feature of blockchain technology that quickly and easily gives users benefits by allowing them to enjoy things like easier sign-in, faster credit checks, and a more consistent Internet experience.
The proliferation of websites, e-commerce hubs, and social media platforms means we can all have a huge database of logins, passwords, and usernames to remember. As this growth increases, the use of password administrators has become commonplace (for example, using one-time passwords and two-factor authentication) to allow websites and services to verify our identity.
As a result, the end user is now faced with an almost overwhelming number of hangers that they can jump through if they lose their password, a two-factor authentication app, or gain access to their smartphone.
The whole online trading process has become more complex. With the advent of blockchain, companies are now in a much stronger position to provide their customers and end users with a simpler identity verification process that removes many obstacles and provides the added benefit of not putting users at risk of malicious privacy. or data leak.
Digital and social media have become an integral part of the daily life of people around the world: “Today, more than 4.5 billion people use the Internet, and the number of social media users exceeds 3.8 billion.” However, data misuse is still a serious problem. This is a big question for all participants in the digital economy: individuals, companies and governments.
Today’s digital identity structures are centralized, growing mistrustful, intolerable, and giving consumers no control over their personal information. Trust has been further undermined by high-profile data and privacy breaches such as Facebook’s privacy breach – Cambridge Analytica, which has collected the personal data of millions of social media users to create voter profiles.
Identity theft, cyber fraud, and data breaches cost the global economy trillions each year, and the numbers increase as the use of digital services increases. In addition, 1.7 billion people worldwide lack access to financial services, and another billion people lack a legally recognized identity. This presents a unique challenge to ensure that these people are not left behind and the economic benefits of the digital world are not missed.
Decentralized ID is the solution
Decentralized Identity, or DID, can be integrated into a variety of applications so that blockchain users can take advantage of the many benefits of managing data and assets and transferring them through a secure and decentralized blockchain network, thereby mitigating the risks mentioned above.
In the digital world, identity is central to everything people do online, and for people trying to succeed in the digital world, being able to prove who they are is critical to inclusion, equality and opportunity.
For companies, the ability to operate without the high costs of data security is an economic benefit in addition to the value achieved in consumer confidence. Acquiring clients alone costs banks a lot of administrative costs.
However, using the DID option offers immediate efficiency gains and ongoing cost savings. This will give both banks and large companies financial calculations that were previously impossible. This is why our government (in Vietnam) understands the importance of blockchain adoption, and Vietnamese Prime Minister Nguyen Xuan Phuc made cryptocurrency and blockchain one of the top five national priorities for the fourth industrial revolution.
One thing is clear: computer problems and privacy breaches are not going anywhere. As more and more people use smartphones, computers, laptops and social media, this number is expected to grow to 4.4 billion by 2025. Unfortunately, attackers and hackers will have a great opportunity to try to steal more personal information and establish an identity. from every person. The internet is in danger.
Blockchain can solve this problem. We expect DID to be an important blockchain use case in the next five years, and we believe this is a great opportunity for technology to prove the time is right. In addition, it can offer a safer, faster, and less important alternative to the status quo.