How Blockchain Is Changing Identity Management

We have heard quite a lot of bitcoins, their pros and cons; but what about the other related well-known term: Blockchain Technology?

Well, in this article we try to cover on  Understanding How Blockchain Is Changing Identity Management and Why It Is Better Than Traditional Methods.

Why Blockchain?

The credentials and identity of the users are one of the main concerns. This is mainly due to the identity not being secure enough leading to theft.
But with the new Blockchain technology that is available these days, these theft related issues can be solved easily.


A Blockchain is an ever-growing list consisting of blocks; which are nothing but the records which are secured as well as linked through Cryptography.

The blockchain technology not only manages the identities or credentials of the user; but it also tends to verify or confirm the identities or credentials of the particular user; which makes the entire process much better as well as more secure in terms of cyber security.
Incidents such as the Equifax breach, which ruined so many people (accounting to about 145 million US citizens) by the mere hacking process of all these people’s personal data.

Hence, the issues of hacking or theft could be revised and solved by using this Blockchain technology.

How is the identity management most effective due to Blockchain technology?

Blockchain technology is being mentioned every now; hence it is obvious for a person to wonder how this technology would support or resolve the issue of managing the various user identities.

Traditionally, the process of identity management involved individually collecting the particular data; and the storing that data on a particular database or sometimes on the centralised servers.
This is indeed considered dangerous because –

  • The centralised servers or the database tend to welcome with open arms, for the process of hacking.
  • It tends to involve the single point of failures which in turn would allow for a cybercrime or cyber-attack.
  • Usage of this data by the same centralised organisation is yet another reason.
  • It includes monetary reasons; like for example, in order to earn huge profits every year, these centralised organisations tend to share or sell the data; even without the user’s knowledge or permission.
  • There are many organisations which allows such a profitable monetary reason to share and sell data; including the well know Google or even Facebook.

So, the replacement of the harmful traditional method is a must. This therefore, leads to usage of Blockchain technology.

More Insight 

Private Blockchain VS Public Blockchain

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Blockchain was developed keeping in mind the following quote –
The Best Way To Secure Any Data, Is To Not Collect It In The First Place”

  • In a blockchain environment, it is the people themselves who have a control of the data; and not the different organisations. It is much like self-sovereign identities which the user himself could control.
  • It would be the user who could manage the identity; as well as share or sell or even change the identities, anytime and anywhere.
  • If the data is not collected, this gives a surety that the data cannot and will not be hacked.
  • There is absolutely no chance for a cause related to single point of failures to take place; as the central organisation won’t be involved.
  • Blockchain technology makes it difficult or practically impossible to allow any monetary demands or purposes; it’s termed as a user controlled identity management.

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Navaneetha Suresh

Navaneetha Suresh

Navaneetha, commonly known as "nav", loves to read, play badminton, play the keyboard and sing but when she's not doing any of those, she loves to write. What started as a high school hobby to write is now her ongoing passion.

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