Market trends indicate that blockchain-based identity protection solutions might contribute to the creation of a decentralized identity database.
It appears that crimes involving identity theft have grown to be a source of concern. This is thought to have a negative effect on advancements based in the digital economy. As concerns about the security of the digital identity sector are still present, experts think that using blockchain technology to ensure self-sovereignty through decentralized networks will assist address challenges with identity management.
According to Market Research Future (MRFR), a company that does market research, the market for blockchain-based identity management is anticipated to develop at a compound annual growth rate (CAGR) of 56.60% and reach $17.81 billion by 2030. “Blockchain has the potential to be advantageous for many industries in terms of transparency, security, and value creation that is supported by business. As a result, it is about to change how identity management now operates in a secure way. Blockchain-based solutions have the ability to reduce dependency on different government-approved IDs (IDs), including voter IDs, passports, and pan cards, among others.
Market activity suggests that blockchain-based solutions for digital identity protection may offer advantages like the implementation of a unique user identity (ID), assurance of user consent, creation of a decentralized database for identity protection, and assistance in the development of a global ecosystem. Blockstack, which helps users safeguard their digital identities by removing digital intermediaries and gives consumers complete control over their digital privacy, was launched in 2013 by Ryan Shea and Muneeb Ali.
Mechanical progressions may be used in blockchain-based identification transactions. Blockchain can help with the creation of innovative identification frameworks that feature decentralized IDs and sophisticated identity systems. Blockpass for Know Your Customer (KYC) and Remme as a non-custodial login provider are two examples of blockchain identity management implementations, according to Vikram R Singh, founder, and CEO of Antier, a blockchain firm. Various industries, including banking and finance (BFSI), logistics and transportation, real estate, the creative arts, and government initiatives like e-governance, can use blockchain identity management.
Additionally, industry research indicates that the use of smart contracts on the blockchain prevents data tampering, ensuring that linked identity management systems are secure for identity holders. “Smart contracts can aid in making sure that only parties with permission can access identification evidence. Identity management becomes global because of blockchain’s lack of regional restrictions, according to Ramkumar Subramaniam, co-founder, and CEO of GuardianLink, a blockchain-based research and development organization.
A number of blockchain networks, including Solana, Polygon, and Ethereum, have reportedly all adopted identity management systems. The National Digital Identification (NDI) system, part of Singapore’s Smart Nation project, introduced the use of digital identity to assist residents in using an e-governance system. Civic, a blockchain-based identity management platform, was established in 2016 with a primary focus on identity management and security.
