Blockchain Technology: An Innovative Approach to Thwart Identity Management Challenges
In spite of introducing reusable KYC integration, which is expected to eliminate the existing bottlenecks of identity management industry, various challenges still loom around centralized identity management systems. For one, the centralized system exposes the private information to immense vulnerabilities by storing them at a particular location, making it an easy target for hackers and cybercriminals. Asides, there is a risk of losing identity information in consequences of events such as system crash or identity mismatch. And on top of all, the identity owners have zero control over their information and therefore are prone to identity theft, mismatch, and breach of privacy.
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Despite path-breaking advancements in the technology realm, a decentralized approach in general and blockchain in particular in the identity management ecosystem is missing. A distributed decentralized ledger such as SoftKey can end the aforementioned struggles and put users at the center of the entire identity management process. This turnkey solution, which stems out of the concept known as Self-Sovereign ID, empowers users to transfer value among participants using a token: ‘KEY’. The token ‘KEY’ is similar to cryptocurrency, such as bitcoin, that can be traded freely. This allows users to selectively share his/her personal information while availing services such as opening a bank account, applying for passports, financial services, and many others.
Unlike many software companies, SoftKey is a nonprofit organization, which means there is no monetization by advertising or selling user data. While extending its substantial utility to users, relying partners, and verifiers in the identity management landscape, SoftKey overcomes many of the challenges and limitations that centralized identity management systems stumble upon. In today’s era, wherein everybody is connected with each other in some way or the other, SoftKey emerges as a tangible solution to the identity management crisis, fostering a win-win situation for everyone in the ecosystem.