A successful Digital ID solution creates digital legal representatives for entities to access to financial activities, education, health easily.
Digital ID (or Digital Identity) is an entity-related collection of characteristics that computer programs use to describe an external agent. A good Digital ID solution will bring benefits in many industries of both the public and private sectors of the economy.
McKinsey Global Institute research finds that by 2030, countries adopting good Digital ID could unlock economic value equal to 3-6 percent of GDP on average, making Digital ID, especially in emerging markets, a potential force for inclusive development.
The report also points out that a successful Digital ID solution should include, but no limit at these 4 elements:
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4 elements to evaluate a successful Digital ID solution:
Verified and authenticated to a high degree of assurance:
Whether to the public or private sector, Digital ID needs to be guaranteed to meet the standards of both government and private sector organizations for initial registration and subsequent acceptance for a multitude of uses. Having a bank account, accessing education, and the health care system are typical uses of Digital ID.
In other words, Digital ID is not the only representative of economic, social, and educational purposes, but also must ensure the legality of that entity.
More importantly, to obtain high-assurance authentication, a number of certificates, including biometrics, passwords, QR codes, and smart devices with identity information are required, which means that a Digital ID solution needs to achieve a high level of integration between the technologies and devices in the process.
An individual must possess only a single Digital ID within a specific system. Ideally, a Digital ID is simultaneously unique across many different systems. Most social media identities today can not achieve this synchronization due to the lack of trust and data privacy violations.
Established with individual consent:
Consent suggests that people have to voluntarily apply for and use the Digital ID with an understanding of what personal information is to be gathered and how it is to be used. It is about individuals’ perception requirements, which leads to the next elements: the ability to control their personal data.
Protects user privacy and ensures control over personal data:
Built-in protection to ensure privacy and confidentiality while also providing users with access to their personal data, decision-making privileges over who has access to that information, and clarity over who has access to it.
These 4 elements of a successful Digital ID solution strike a balance between individual control and government/other private sector organizations. The importance of technology in digitizing and applying Digital ID is emphasized. In Particular, the Digital ID solution using blockchain is highly appreciated to create a Self Sovereign Identity System solution.
Blockchain-baked Digital ID creates a Self Sovereign Identity System solution
In this self-sovereign identity system, each individual or entity can be empowered to create unique, digital and portable identities on their own which can rely on decentralized technologies such as shared ledgers for use but do not rely on any centralized authority, rendering them irrevocable by any third party.
Blockchain-back Digital ID is a powerful security solution that meets new requirements for trust in all exchanges between citizens and public authorities or any private organizations.
Currently, the Blockchain-back Digital ID solution is more dynamic in the public sector, under the direction of the Government, such as Switzerland, the United Arab Emirates, Singapore, UK, China, Estonia, Japan, Sweden, etc.
However, the development of a Blockchain-back Digital ID solution is still at its early stage. There is still more work to be done to create a complete Blockchain-back Digital ID solution, especially to regulation issues and technological infrastructure availability.
By offering blockchain Digital ID applications that are highly applicable and secure, akaChain – the enterprise blockchain platform, is entrusted by many companies and the Government. Our clients operate in a wide variety of industries, such as Financial and Banking, Retail, Pharmaceutical.
Collaborating to develop blockchain Digital ID solutions is knotty but also inspiring with many discoveries. If you have something to say about digital ID trends we always welcome any suggestions on how it could be improved or suggestions for future articles.
akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since Establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit https://blog.akachain.io/.
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