How does the blockchain verify identity?

In identity management, a distributed ledger (a “blockchain”) allows all members of the network to have the same source of truth about which credentials are valid and who has vouched for the validity of the credential data, without revealing the actual data. At the time of writing, it is claimed that Dubai will also introduce a fully developed self-sufficient identity system. The uPort, backed by ConsenSys, shows the aspect of self-sovereignty, as users can manage the transfer of their own identifiable information, keys and data through their personal device (Wood, 201.In identity management, a distributed ledger (a “blockchain”) allows everyone on the network to have the same source of truth about what credentials are valid and who attested to the validity of the data within the credential, without revealing the actual data. The uPort, supported by ConsenSys, shows the aspect of self-sovereignty, as users can manage the transfer of their own information, keys and identifiable data through their personal device (Wood, 201.At the same time, a digital identity management framework is not predetermined by certain ideas around DLT, such as decentralization and immutability.

We have already mentioned the characteristics of identity to which legal consequences are attached. such as life and death. The possibilities for DLT-based identity solutions in the private sector are often intertwined with those in the public sector, as some require credentials verified by government institutions.

Why do we need blockchain for identity?

Trust in identity ownership on the blockchain (or in any system) is based on the authenticators used to access the system. Identities anchored in blockchains are inherently more secure than identities stored on centralized servers. The blockchain enables DPKI by creating a tamper-proof and trusted means of distributing the asymmetric verification and encryption keys of identity holders. In this way, the blockchain offers the ability to eliminate intermediaries while allowing citizens to manage identity independently.

Before DPKI, everyone had to buy or obtain digital certificates from traditional certificate authorities (CAs). These keys are used to allow others to verify digital signatures or encrypt the data of the respective identity holder. In identity management, a distributed ledger (a “blockchain”) allows everyone in the network to have the same source of truth about which credentials are valid and who has vouched for the validity of the credential data, without revealing the actual data.

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