Identity theft is a pervasive problem, and the complexities of our current system of identity management were vividly highlighted for Nik Milanovic when his passport was stolen during his travels. In this insightful article, Milanovic explores the broken nature of our current identity management system and introduces the potential revolutionary role of blockchain technology in reshaping it.
Milanovic envisions a future where blockchain consolidates and empowers individuals to have complete control over their digital identities. The decentralized nature of blockchain ledgers is seen as a critical step in providing ultimate control over identity access points. The article emphasizes two key steps in reclaiming control: ownership of individual identity nodes and the consolidation of these nodes into a single, secure location.
The fragmented and segmented nature of our digital identities today is outlined, pointing to the fact that individuals do not truly own their data; third parties do. Milanovic argues that this lack of control has troubling implications, including the vulnerability to fraud and manipulation.
The author contends that blockchain could offer a silver bullet solution to these problems. Three key features are proposed for an ideal identity management solution: no reliance on third parties, homomorphic encryption for secure data management, and consolidation of all identity information into one record of truth.
The Equifax data breach serves as a poignant example of the current vulnerabilities in our system, prompting Milanovic to advocate for a self-sovereign identity approach. This approach would give individuals complete control over their digital selves, allowing them to grant access to third parties for specific benefits while maintaining ownership of their data.
The article also touches upon the potential global impact of blockchain on identity management, envisioning a world where blockchain protocols become universal standards. Initiatives such as the ID4D initiative by the World Bank and UN, as well as the efforts of companies like ObjectTech and the creation of the Decentralized Identity Foundation, are cited as steps toward a more secure and accessible future.
In conclusion, Milanovic predicts that when identity control is restored to individuals, it will usher in a new era that looks nothing like the past. As blockchain technology continues to evolve, its role in shaping the future of identity management becomes increasingly significant.
