Explore the Reasons Why Blockchain Technology Has Become Essential in Identity Management
Blockchain technology has been benefiting several industries with discernibility and safety.
Since the last few years, the blockchain technology has been benefiting several industries with discernibility, safety, and many other features, incorporating standards to their businesses.
Thus, blockchain technology is believed to transmute the current working of identity management in the best possible way.
When the existing identity management structure is neither safe nor consistent, blockchain technology comes as a savior and makes sure all the important data of the respective organizations are secured in the safest chest.
At every point, you are being queried to identify yourself through a number of government IDs like driving license, passport, pan card, passport, etc.
Simultaneously, sharing numerous IDs can lead to data rifts or ruptures. Here, in such a context, blockchain technology leads to self-sovereign identity through localized networks.
A self-sovereign identity ensures confidentiality and conviction, where identity documents are safe, substantiated and permitted by authorized users only.
Now, the question remains, what exactly makes blockchain secure. The reason is pretty simple though. The fact that each block where data is transcribed cannot be altered sequently without the consent of the majority of the network has made it safe in more than one way.
Since blocks are being formed and generated every moment, shifting those and the blocks we aspired to change, would necessitate huge computing power.
Here, it’s worth mentioning that Satoshi Nakamoto created blockchain to crack the double-spend issue of digital exchange and to act as archives of the dealings of Bitcoin. Each user that handles Bitcoin acts as an apex in the network, processing a transaction on the Bitcoin blockchain.
This makes it evenly dispersed, as no central buff is required and each user in the chain can access the record even without the intervention of a middle-man. The greater is the number of users in the network, the tougher it is to undermine the reliability of the information on the blockchain.
According to a Portland-based research firm, the global market for blockchain identity management is anticipated to hit $11.46 billion by 2026.
The rise in transaction transparency, increase in need to sew up excellence, consistency, product safety, and authenticity, and surge in funding by retail businesses in blockchain-based solutions fuel the growth of the market in more than one way.
On the other hand, the dearth of skilled experts is expected to curb the growth to some extent. Nevertheless, evolving international business and retail sector have almost modulated the above factor and knocked up several opportunities in the market.
In short, it can be stated that blockchain identity management doles out real-time data or statistics about a particular entity which, in turn, allows organizations such as hospitals, banks, and retail hubs to verify their identity for any kind of substantiation or authentication.
At the same time, blockchain also guarantees consistency, security, and validity of users’ data with its cryptographic haven.
To sum up, it can be asserted that the market is growing at a rocket’s pace and is projected to flourish yet more in the next few years.
Market Investment Strategist and Reviewer. Technology Enthusiast