Blockchain Technology: Finding A Counter To Identity Theft

Beyond the military, no other industry has a greater need for strong multistep processes for security than the sector of identity and access management (IAM). As globalisation ushers in a new age where services across different geographies and domains are required to be integrated, IAM software has to constantly innovate itself and keep up to the current trends of cybersecurity.

With many operations and business requiring users to pass along their most sensitive data, it is crucial for IAM systems to ensure that any number of the centralised databases being used will not be compromised. Identity theft has been a major thorn in the side of the digital security sector. With theft of identity and cases of fraud and data breaches threatening to increase in frequency and number, IT security departments have to work against the clock to constantly update and fortify their existing security systems.

But with the advent of blockchain security, the digital security world may finally be able put an end to identity theft. With blockchain technology, self-sovereign identity can finally be materialised. What does self-sovereign identity mean, you may ask? It refers to individuals being able to control their personal data, regardless of where they are. Through the ability to regulate information and prevent duplication, blockchain security will be able to nip the problem of identity fraud in the bud. Incorporating a blockchain ledger to store and manage identities makes it harder for hackers to access and steal information without leaving a clear digital trail.

How does the blockchain technology work? It is simple. Using modern cryptography, each block is built upon the previous block along the blockchain. The nature of this ledge is therefore immutable, as every change to information that has been stored in the existing blocks is logged and associated to an individual. This makes it difficult for malicious attacks to occur, preventing identity theft from happening.

As a result of the immutability afforded by the blockchain ledger, every individual involved and participating in the database is empowered and holds complete control over their personal data. Because of the decentralised nature of databases under blockchain security, individuals can be assured that their identities will be far out of reach from external third-party hands, managed only by the most trustworthy.

For most organisations, the credentials and identities of existing employees are entrusted to custodians and servers that are external or owned by employers. However, corporate hacks are common occurrences, especially for giant corporations. In recent times, many major businesses have had their servers hacked, exposing their customers and employees to serious breaches of data.

This has proven the need for a decentralised database. Why? When the database is no longer managed as a central entity, login credentials are now filtered through blockchain permissions, making the process for verification and login authorisation more stringent. In addition, the individual will be able to ensure the accuracy of their personal details and update them in real time.

Blockchain technology has begun to revolutionise the way identity is managed and secured nowadays. Organisations should be motivated to invest in blockchain, to protect their businesses.