The internet has given rise to a new era of data security and privacy predicaments. As more people continue transitioning to digital technologies, issues relating to digital security, privacy, and data integrity have taken center stage. To illustrate the scope of these issues, the 2021 Javelin Strategy & Research Identity Fraud Study reveals that identity fraud losses topped $56 billion in 2020.
Traditional identity management systems of today are heavily centralized, resulting in several third-party service providers controlling your data. This problem can be clearly seen across several existing social media and eCommerce platforms where users no longer have sole control over their personal information, resulting in their confidential data often being leaked and misused.
The Current Scenario
Currently, every online platform requires users to provide verifiable credentials for accessing products and services. This ‘digital identity’ contains all the relevant information pertaining to an individual.
Centralized platforms often collect sensitive and personal data related to ‘digital identity’ about their users, then store them alongside regular data in centralized servers. By design, the centralized ecosystem is fragmented, offering minimal transparency for users, and is becoming increasingly insecure.
Additionally, centralized identity management systems lack the feature of self-sovereign identity management, resulting in redundant processes to verify, validate, and manage a user’s digital identity throughout their lifecycle. These operations quickly become excessively expensive, repetitive, and tedious, needing manual data reconciliation and validation.
Therefore, we need a trustworthy and reliable solution that enables users and businesses to interact digitally with each other while preserving data privacy and security.
Continue reading: https://zycrypto.com/how-can-blockchain-technology-protect-digital-identities/
Traditional identity management systems of today are heavily centralized, resulting in several third-party service providers controlling your data. This problem can be clearly seen across several existing social media and eCommerce platforms where users no longer have sole control over their personal information, resulting in their confidential data often being leaked and misused.
The Current Scenario
Currently, every online platform requires users to provide verifiable credentials for accessing products and services. This ‘digital identity’ contains all the relevant information pertaining to an individual.
Centralized platforms often collect sensitive and personal data related to ‘digital identity’ about their users, then store them alongside regular data in centralized servers. By design, the centralized ecosystem is fragmented, offering minimal transparency for users, and is becoming increasingly insecure.
Additionally, centralized identity management systems lack the feature of self-sovereign identity management, resulting in redundant processes to verify, validate, and manage a user’s digital identity throughout their lifecycle. These operations quickly become excessively expensive, repetitive, and tedious, needing manual data reconciliation and validation.
Therefore, we need a trustworthy and reliable solution that enables users and businesses to interact digitally with each other while preserving data privacy and security.
Continue reading: https://zycrypto.com/how-can-blockchain-technology-protect-digital-identities/
