Why is the block chain is important in digital identity?

The data saved on the block chain is permanent, tamper-proof and transparent – all properties are suitable for upgrading traditional identity databases, such as data held by passports or car licensing agencies.

However, the true potential is the other features of the block chain. Digital Signing Allows us to choose how to share their digital identity, zero knowledge prove can provide the ability to verify identity, without providing users with the visibility of identity itself. But the detrimentary concept may be the most powerful concept that supports the number identity of the block chain. Understand why this is an important involving the evolution of online ID and how much control will give a few companies.

Privacy erosion

In the early days of the Internet, when it is purely a communication tool instead of anything, it is quite limited to identify other parties. The Development Domain Name System (DNS) system is to meet existing requirements. The Internet Name and Digital Address Assignment agencies (ICANN) are an independent US entity and are still responsible for managing DNS records.

In addition to the Internet, the cipher field has also developed increasingly complex online data and communication protection. However, encryption itself does not provide a method of establishing trust – Some people must know that a specific person or entity supports encryption to believe that it is safe. Therefore, the public key infrastructure system is managed by a trusted third party or certificate authority, and they publish the public key that matches the user. Every time we log in to a website with the “https” prefix, we trust the identity of the website owner, which is certified by the certification authority.

Then it is the rise of social network age and technology giants. Today, we can log in to many different sites and services using our Facebook or Google credentials, and these sites are only based on this trust us. Although it is undeniable, this is more convenient than having tens of or hundreds of personal usernames and passwords, but we have effectively extrapolated the management of digital identities to a few technologies.

Bitcoin – a new privacy model

Password punk movement is concerned about the constant development of horror in this case. In the Password Punk Declaration, Eric Hughes called for anonymous trading system, allowing individuals to disclose their identity only when they choose. That was in 1993, Mark Zachberg was only 9 years old.

In 2008, Zhongbaoche invented Bitcoin as a point-to-point version of electronic cash. It is impossible to know whether China Congcong foreseeds his potential application in the future, but he mentioned privacy in the Bitcoin White Paper, outlined how to make public key and identity anonymity.

Now, due to the efforts of Zhong Cong, we look into a new era of digital identity. So far, a challenge to the block chain is that although individuals can freely trade with each other, companies must be more cautious due to regulatory and compliance requirements. Starting from 2021, organizations and individuals will be able to interact with block chain platforms named Concordium, which balances privacy and identity.

Built-in identity layer

Concordium is a block chain project located in Switzerland, aim to overcome the regulatory challenges faced by companies that wish to benefit from the safety of public zone chain architecture and the benefit of the deposition. As part of its technical stack, Concordium operates an identity layer that is connected to the real world through the chain identity provider.

When the user wants to open an account, they must first get the authentication of the identity provider. The provider creates a chain object as a zero knowledge that the user has checked. They can then use their identity to allow any application they use to privacy transactions. The identity provider cannot associate its account with its identity.

Therefore, let us assume that the user is a customer who is approved by the financial institutions approved by Concordium. They will have standard KYC inspections with identity providers, and their identity providers check their passport and residence proof.

Because they also want to loans, they also share their credit records. Then they can use the app to apply for credit. The identity object uploaded by the provider verifies that the user is a good candidate for the loan, but does not disclose their documents or details.

However, more is further, the user repeatedly arrears the repayment. The credit decided to take legal action to perform a loan agreement. In this case, CONCORDIUM has a program that allows relevant authorities to identify individuals so that they can be forced to repay loans legally based on the contract.

The Concordium Foundation appoints trusted third parties called anonymous undo. Anonymous canceller can decrypt the unique identifier of the user. This authorized identity provider handed the identity document to the authorities so that the loan can be recovered according to the legal provisions of the agreement. It should be noted that the identity provider and anonymous cancelor cannot operate independently.

One platform, multiple use cases and accounts

Users can also create multiple CONCORDIUM accounts without having to associate multiple accounts.Therefore, the above user can also create a second account, for example, according to their driving license and vehicle registration ID.They can use this account to participate in the car sharing application.It does not link other accounts that they use with the borrowing application.So far, these are examples of assumptions.However, they only illustrate several use cases based on digital identity of the block chain of the autonomous region.

This is far from the current status.However, our online identity control of our online entities and private companies is closer to the time.