Digital transformation, privacy scandals and mass security breaches require an urgent review of our data storage systems because our data is becoming increasingly sensitive. All our information is on the Internet:, bank accounts, credit card information, addresses, passwords etc. but we don’t know whose hands it is in, leaving us in a situation of constant vulnerability. This is why we must adopt storage models that respect our privacy and protect our digital identity.
What is blockchain technology?
Blockchain is an advanced database mechanism or ledger that records transactions, enabling transfers without third parties.
The number of transactions has grown exponentially. This slows down business and is detrimental to the bottom line. We need to improve how we do things. And this is where the blockchain comes in.
A blockchain is composed of “blocks”, which are continuously added to the chain. These blocks can be considered permanent pages in a file where data about the network is stored. Once the information is written, or the block is added, it cannot be changed without the consensus of the nodes running on that network. But how can it be used to secure our digital identity?
Self-Sovereign Identity model
The implementation of this model allows individuals to take back control and responsibility for their own individual digital identity. Self-governance of data or Self-Sovereign Identity (SSI) can help end-users obtain more accurate control over personal information, what they share, in what context and with whom.
There are currently hundreds of accounts on the Internet, but none of them represent us entirely and aren’t even under our control. These accounts are owned by the provider, allowing us to use the service as users, in exchange for the data and information we provide. With the SSI model, large corporations and governments are not the ones collecting, storing and processing the data, and therefore there is no hierarchy. And verification, through biometrics, results in the acquisition of a true, secure and, above all, private digital identity.
What problems does combining the two solve?
Blockchain technology is the missing piece to make self-sufficient identity a reality. In an SSI context, blockchain technology solves several problems that have plagued the world of digital identities to this day.
The mediator: removes the need for a mediator, which is generally represented by a bank. We can confirm transactions and identities, as well as verify contracts, all without the need for a third party.
Trust issues: the network builds trust through a combination, a complex mathematical problem that must be solved, tested and then verified by the rest of the network, before any new information can be added.
Transparency: in public blockchains, all transactions are available for viewing, this allows for a level of integrity and accountability, which did not exist in previous financial systems.
Control: the user is the owner of their own data and has control over the traceability of such data in compliance with the GDPR.
