The Blockchain keeps evolving and evolving per time and it is getting evident that the digital world is also getting transforming. It is really a great thing to be witnessing and I am so sure that more and more of these will still come. One of the ways that the blockchain have been able to transform the society is through the digital identity verification and which I will be talking about today.
Over the years, we have always been familiar with the traditional identity systems. I am talking about before the invention of the Blockchain technology but there have been challenges that we have been facing also as a result of the traditional identity system we are used to. Lot of challenges like the one of cyber attacks, data breaches and many more actually. Now we are in the era of the Blockchain technology, an era of innovation that has help to give a lot of positivity beyond what we can imagine of.
Let me first start by talking extensively about the problems with the traditional identity verification and which we need to look into. First of all, the traditional identity system majorly works by depending on the centralised databases. Centralised models have been able to make use of personal information to be actually vulnerable for hackers. One of the things I have actually come to discover is that traditional methods are always choky and in fact most of the time end up to not function effectively as we now have in the digital identity verification methods.
Now let me move to the promise of Blockchain technology and the ability it has to offer beyond what we can think of. Blockchain technology first of all having the Decentralised and immutable nature helps it to thrive most especially when it comes to the identity verification systems. Blockchain goes a long way to record transactions and not only record transactions but also make sure that those transactions are transparent and secured.
One of the things that makes blockchain technology to function effectively when it comes to the digital identity verification system is the two attributes which are transparency and immutable. Transparency in the sense that all transactions carried out is always seen on the Blockchain and immutability in the sense that if every or any transactions is established, it can not be altered. This two feature makes it a strong foundation and templates on which Identity management can be built on.
Still talking about some forms that the application of Blockchain in identity verification is evident is in the financial services. Financial institutions now make use of the Blockchain to carry out their KYC registration. KYC called the know your customer process. It helps to get more the details and needed information about their customer and much more. It is also used in the healthcare sector as it helps to keep the information of patients safe much more than ever imagine of.
Even though the Blockchain technology also have it's own challenges like the regulatory aspect, I believe countries that have different law which sometimes serve as hindrances to the usage of blockchain in some part of the world but I believe those challenges will soon be dealt with and actually overcomed as it is just a matter of time.