Technology has always led to innovation and transformation. At the same time, it has laid the foundation stone for new developments. The Blockchain is the latest buzz in the market. Irrespective of which business vertical you are talking about Blockchain continues to rule every discussion. Blockchain’s earlier application was limited to cryptocurrency exchange. However, it underwent a huge change since 2009, and now it finds application in various domains like supply chain, retail management, academics, shipping industry, and other areas. Digital identity is one area where companies are aggressively working. Recently, GM Financial collaborated with Blockchain to cut down identity fraud. Read ahead to know more on this.
Digital identity remains an area of concern for all companies. The evolution of the era of the internet has made the digital world prominent. The growing inclination of people for the world of internet has made it mandatory that the service providers should have systems in place that can ensure the safety of the data. We have often seen cases of hacking, altering the data and information in the digital world. All this boils down to the fact that we must have a fullproof technology that can help in the security of digital identity. Blockchain happens to provide a solution.
What is Blockchain?
It is a distributed ledger technology where information is spread in the entire network. It makes use of decentralized platform aiding peer-to-peer interaction. This reduces the need for third-party, and at the same time, it also allows only the allowed members to participate.
Furthermore, the technology allows data storage in chronology. Time-stamping ensures that the data is easy to track. One can quickly figure out any change or alteration. All these features make Blockchain an elixir that can cure the current problems which the system is facing.
GM financial move in Blockchain:
We have seen that many companies have shown their inclination towards the use of Blockchain technology. They are trying to integrate this technology with their business operations. The objective is to create a system which is transparent, safe and promotes data security. Moreover, cost-efficiency and lesser time consumption is another factor that makes Blockchain so popular.
Companies like Microsoft, IBM, WWF Australia, Apple, Facebook, etc. are working on exploring different avenues of application of Blockchain technology.
GM Financials is yet another name in the list. The company has announced integration with Blockchain technology to prevent digital identity fraud.
GM Financial of General Motors Financial is the financial wing of the automaking biggie, General Motors. The company has decided to collaborate with Spring Labs which is a Blockchain startup. This company provides a solution for identity verification. This move will help the company ensure the security of identity of its clients, and at the same time, it will enhance the trust level in the system.
A bit about Spring Labs
Spring Labs is a Blockchain startup that provides identity solutions. The company started in 2017 along with leading companies like Avant. It works on Blockchain-based network which allows banks, and data providers to exchange information without underlying the source data. It thus ensures data safety and security.
GM Financials aims at using this solution and merges it with its current business format. The Spring Founding Industry Partners Programs aim at formulation a regulatory solution which will work for ID verification and preventing identity fraud.
The company has also rendered its solution some of the fintech firms like Avant, SoFi, Capital, OnDeck, Avant, BlueVine, Fundbox, Better, etc.
This program aims to create a platform where information is safe and at the same time can be easily exchanged globally.
Recently many fintech firms have shown their inclination towards DLT and have tried to come up with a solution based on Blockchain. The aim is to create a safe ecosystem where consumers/clients can easily interact without a threat to the information.
The Blockchain is an excellent choice for those who are willing to have a secured platform, but at the same time, we cannot ignore the fact that it is not a holy elixir which will transform the business in a day. The technology is at a nascent stage and is evolving every day. Today many companies are integrating their services with Blockchain with an aim to provide an efficient and cost-effective platform of data exchange while ensuring data security.