Security, privacy, and usability of data and information are at the core of concern in a data-driven world. Whether you are talking about use of that data in financial transactions, marketing data, traffic, health, government, logistics, defense or just normal end user applications such as storing marriage contracts or personal information storage.
Blockchain can be used to deal with some challenges relating to security, privacy and usability of personal, business, organization or government data and information.
A simple example is that while all (or many) governments have issued forms of physical, online and digital identities, these do not recognize national boundaries. Of course there is no overusing global entity. Again, processing these identities in many cases will require trusted, central authorities and the data is stored centrally, which not only increases cost of data storage but also exposes that data to everyone else with access to central data centers. There is less or little control of the data on the part of the end user.
Blockchain helps in creating and management of a digital ID that is stored on a decentralized computer system. Not only can it be used for authentication purposes globally, it can be used across global platforms, and most importantly secure personal information.
Users, on their part, can share this data to any companies they wish and on their own terms.
Below are some cryptocurrencies already in the field of identity management.
Pangea Arbitration Token (PAT)
PAT is a ERC20 compliant in-app token for the Pangea Jurisdiction, the world creation of Bitnation. It is issued when users (citizens) of Pangea Jurisdiction create a contract or complete a contract or resolve disputes related to an existing contract. It can be purchased or exchanged in various crypto exchanges.
It will work as a reward token for those accumulating proof-of-reputation tokens. Bitnation, which was formed in 2015, will run the ICO on February 28 to March 2018. Pangea allows citizens to conduct peer-to-peer arbitration and create nations. It will integrate with other chains such as Bitcoin, EOS and Tezos in future.
In other words, this is the currency for the first blockchain-based virtual nation Bitnation. Bitnation is a nation bordered only by source codes, complete with a constitution. With it, you can notarize their marriages, birth certificates, business contracts and more. It has many frontiers including first workable DIY land title recorded on the blockchain in Ghana, first marriage registered on blockchain, and first blockchain-based passport.
The idea of its World Citizenship Passport, for instance, would be to have no central authority issuing passports in the same way Bitcoin has no central bank. It would secure personal data, facilitate its use globally and eliminate possibility of fake identities.
It partnered with Estonia government last year to offer a public notary service to Estonian e-residents. Bitcoin, EOS and Tezos will also integrate into the platform. Anyone can register on Bitnation network.
Identity problems do not only exist when identifying persons. Counterfeit products, for instance, are common today and companies that manufacture original products lose millions if not billions.
Blockverify wants to make it harder or impossible for duplication of products. Companies in any industry can create, register products and then monitor supply chains on the blockchain. It can also help track fraudulent transactions and stolen merchandise.
XID is a token run by Sphre. With Air system from the company, users can register, store and manage their data on the blockchain. They will be able to control who accesses this data. With Air, users can charge XID tokens on companies or other entities willing to pay for access to their data.
AIR platform comprises of Chain code or ‘smart contract’ that allows users to store the data and the Application Programming Interface (API) that allows third-party organizations and enterprises to integrate support for Air in their existing and new systems.
The project raised $3.7 million in a June ICO from 575 participants in just less than nine days.
SelfKey ICO started on January 14 and was scheduled to end on January 31 but tokens sold out in 11 minutes raising $21,780,000.
Key tokens will be used to access the network, verify and notarize ID documents and to purchase services such as a residency, company a bank account and exchange account.
Basically, SelfKey will be a blockchain-based digital identity system o top of Ethereum, but with an integrated financial services marketplace.
It will provide users an instant access Citizen by Investment, Incorporation, Financial Services, Token Sales, Coin Exchanges and other services in a secure way.
Civic, another digital identity management platform works by collecting various user identifying information and passes them through a government agency or third party identity verification service depending on the country the user is located or hails.
The system then collect a cryptographic hash and stores in the blockchain while erasing other personal data from the servers.
Users can utilize the hashed information to authenticate in order to use another service. In other words, they can share whatever information they need to. The authenticated service will no longer need to store user information.
Once the hashed data is stored, even hackers or intruders cannot get the data unless if there was a way to decrypt the data.
In regard to the token, trustworthy Identity Verification (IDV) providers such as banks, utility companies and many others can be incentivized for verifying attributes of the identity of an individual or business and attest the attributes on a blockchain.
Validators will receive CVC tokens when other participants utilize their attestations to prove identities. In other words, you cash on your data in a more secure and private ecosystem. CVCs can also be used to gain access to other services from the ecosystem or platform itself.
Validators can also use smart contracts to price their identities verification and offer them to other participants. This will result in an identity verification ecosystem.
The company raised $33 million in digital currency tokens in a June ICO that ended before the scheduled date.
Shocard.com provides the ShoBadge platform that avails blockchain-basd digital identity verification and authentication process.
Users such as banks and businesses can can use the platform to extend security and privacy to their systems and to secure user data when required, for instance to secure data against breaches.
Individual users can also use the system to share any personally identifiable information (PII) with any organization they wish. It secures data, which is also independently verified with one way digital signatures of hashes of their data on the blockchain.
UniquID saves all the user devices and digital assets in a blockchain-based digital vault to protect these assets. Each of those devices are independent and there are no intermediaries.
The wallet provides secure identity management, integrated with fingerprint and other biometry on personal devices. It can be deployed on custom hardware, servers, personal computers or smart phones and tablets.
It is used in the world of IoT where smart devices communicate and cooperate without boundaries in a secure manner to keep data away from remote and vulnerable concentration points.
The platform is in beta testing.
Even digital identity will play a key role in the future of blockchains used by financial institutions because while they do not inherently contain ability to comply with Know Your Customer and Anti-Money Laundering requirements.
IBM is running a project to help accelerate growth of networks on Hyperledger Fabric. With Nekti, users not only create digital identity but they can carry that digital identity seamlessly across multiple blockchain to share their identity with whomever they choose.
This improves user privacy compared to common practices today.
And on May last year, the company launched the highly-anticipated Digital ID smartphone app to help people control their identities better. In other words, it gives everyone who needs a government-approved identification a feature-rich, blockchain-based, free solution that can be used anywhere. It makes use of the Hyperledger blockchain.
Netki Digital ID addresses issues of Anti-Money Laundering (AML) and Know Your Customer (KYC).
uPort was developed by ConsenSys and is a self-sovereign identity system based on Ethereum. It contains smart contracts, developer libraries, and a mobile app. Users can create and store personal information and identity through smart contracts with the key being held by the mobile app but the identity can be recovered if the device is lost.
Developer libraries allow third-party developers to integrate support for uPort into their apps.
The digital identities can be used to sign transactions.
They recently collaborated with City of Zug to create the world's first live implementation of a self-sovereign government issued identity on Ethereum.. Citizens are already verifying their identity on the platform in the city full of cryptocurrency activity.
Once a user creates the identity, they register at the City of Zug website and the data is verified. The digital identity is used by the user to access online services of the City of Zug seamlessly without need for passwords or logins.
With BlockAuth, users can own and operate self identity registrar and submit information for verification. The Identity Registrars then verifies that the person submitting the identity is a real person.
Users can leverage the technology to access services that accept BlockAuth metadata without having to provide their personal data. Third parties can also use BlockAuth compatible account to access services on the platform.
Blockstack provides digital keys that lets users own and control their identity. It works for Windows, Linux, macOSs and there is a Web app and browser. Users can use the identity to sign into apps or exchange encrypted personal information and data between apps without remote servers or identity providers.
The data is stored on remote user devices, with no middlemen and the user can edit their data as wished.
The platform held an ICO in December last year and raised $50 million.