News | August 16, 2021, 15:38 PM | The content is supplied by a Guest author
Blockchain Technology is getting popular day by day. Blockchain innovation stands to alter how cash and money are dealt with. This technology productively sidesteps the need to have an arbiter and permits individuals to transfer and gather their cash without the intervention of banks and other monetary substances or any third parties. This article will explain what blockchain is, how blockchain works and how it can be used for identity verification to make the world a better place.
What is Blockchain?
In simple words, blockchain can be defined as a digital record of transactions. As the structure of the name suggests, the user’s record called blocks, which are connected together as a single list that is called a chain. They are mainly used to keep the history of transactions made with cryptocurrencies such as Bitcoins.
Blockchain technology has a number of use cases in every field of life. Some of them are:
- Send and receive digital money safely and anonymously.
- Exchange confirmation through blockchain synchronization.
- Send advanced cash utilizing a special Bitcoin address.
- Use, store, and trade digital currency.
- Buy Bitcoin and other cryptocurrencies.
How is Blockchain used for Cryptocurrencies?
Around 6,700 cryptocurrencies are available online today. According to CoinMarketCap people are getting profit on a daily basis by trading cryptocurrencies such as when they buy bitcoin. There are many reasons behind the popularity of cryptocurrency which are connected with the use of blockchain technology:
· The blockchain technology is way safer than payment methods that use fiat currencies.
· Experts believe that inflation can be reduced because central banks do not have any authority over crypto and that is one of the major reasons behind the popularity of cryptocurrency.
· The crypto enthusiasts believe that “Cryptocurrency is the future”. So they are actively engaged in buying bitcoins and other cryptocurrencies before they become more costly and valuable.
Cryptocurrency demands that you have a computerized wallet application. This application will permit you to send and get advanced money such as bitcoin and check bitcoin price in a protected, unknown, and transparent style. You can even buy bitcoins in a matter of a second with the help of a wallet. A wallet application will permit clients to collaborate with various blockchains and effectively send and get various cryptocurrencies
What are the prevailing problems with the Traditional Identity Management System
Identity Fraud and Fake Identit
In this digitalized age of the internet and social media applications, people often share their identities and important personal information online through unknown servers and sources that use the traditional centralized systems for storing data. Not only their data is at risk, but it can make hackers attack their personal information to use in dangerous hacking programs, which can jeopardize their whole personality. Almost around 4,861,553 records are targeted by hackers on the centralized systems, according to the Breach Level Index, which accounts for:
· 202,565 records are stolen every hour
· 3,376 records are stolen every minute
· 56 records are stolen every second
Unique Usernames and Passwords
When joining a website or application, a user must create a new username and password to access the service. As there are multiple applications that people need to access, it can create havoc of different usernames and passwords, which can be hard to memorize.
Insufficient Control Parameter
People do not notice how many times their personal identifiable information has been shared with several sources and servers for different purposes or where the information is being stored. Lack of control over one’s own identity online makes it very risky. It calls for desperate measures for a safe and secure ecosystem. This is where Blockchain enters the game.
Why should Blockchain be used for Identity Management?
Blockchain technology provides a permanent solution to the issues stated above by offering a decentralized ecosystem where no third party or organizations have any authority over your personal identifiable information.
With the correct use of Blockchain Technology:
· A safe, secure and transparent ecosystem can be created to protect personal identities from theft and fraudulent activities.
· Encrypted digital identities can be easily constructed where total control will be given to the individual.
· Removing the need to sign up from different usernames and passwords every time.
What will be the Benefits of Creating a Blockchain-based Identity Management System?
The blockchain system is highly transparent, fast and secure. It is so cost-efficient that it will eliminate the time and amount needed for authenticating identities for users as well as businesses.
Every transaction made on the blockchain can be traced; hence, it creates a system where every transaction has a verifiable validity.
Blockchain provides 100% security and ensures the safety of all the activities performed on the system.
One verified identity can be used across the borders, so there is no need to create multiple usernames and passwords.
The data is stored on different nodes on the network to exterminate the risk of breaching or losing the data.
Where can Blockchain Identity Management be used?
These are a few use cases for blockchain identity management:
- Making an application for a loan
- Legal Processes
- Immigration Procedures
- Trading, buying, or selling cryptocurrencies such as Bitcoin on the internet
- Verification of previous employment
Blockchain technology has a lot of innovation since phone use keeps soaring, just as the utilization of portable applications makes admittance to cash simpler than any time in recent memory. Even during the Covid-19 crisis, Blockchain made significant growth because of its decentralized and reliable ecosystem. People have used digital platforms and currencies to buy food, entertainment, and shelter.
As the internet is growing rapidly, so is the technology of Blockchain, which is helping millions of people through its constant developing ecosystem. Blockchain recently announced its goal of having one billion wallets by 2030. As more and more people are turning towards this online currency system, Blockchain Technology is hopeful to demote the inflation rate throughout the world with its decentralized ecosystem.