Blockchain has revolutionized the whole digital world with much-needed features such as transparency, traceability, consensus governance, devoid of third-party interventions, cryptographic encryption techniques, and ergonomic reconciliation. Despite the domain, every sector has identity verification and authentication techniques to ensure safe practices in the network. With an insecure process flow and a centralized server system, digital identity management is facing significant challenges.

The database hacks, theft of assets, fake accounts are growing eventually as the digitalized ecosystem grows. Albeit the unified biometrics, there exist security threats from centralized identity management systems. This modern era requires a decentralized and encrypted ecosystem to manage identity documents, and here come the blockchain identity management solutions.

In this blog post, let's have a look at how the blockchain digital identity solutions work!

How does blockchain identity solutions work?- A brief overview!

Sign-up

The user's blockchain digital identity starts up as the self-asserted data block. The block contains the user's identity attributes, public and private keys. The confidence level is considered the key aspect of blockchain-based digital identity solutions and is found at the base level at initial stages.

Identity verification

Third-party entities such as government organizations, the employer can access the user's identity documents and sign the hashed address if the attribute values match their records.

Boosting the level of confidence

Higher the relationships, verifications, hashed addresses, confidence, and accuracy increase; thereby, the reputation capital of the identity grows.

Modification history

As the blockchain digital identity solutions have a history of changes in the user's identity, it helps the new third-parties look around previous and current documents.

Wrapping up with use-cases!

Blockchain digital identity solutions can be effectively used in various sectors. Let's glimpse at the list of sectors!

• Human resources,
• Voting,
• Government organizations,
• Banking and insurance,
• Travel and tourism.