Technology has made inroads in our lives like never before. We have seen many developments that have led to the surge of a new era of transformation. All these changes forays into the development of new avenues of job opportunity and business operations. Coming to the application part of Blockchain, then fields like academic, retail, healthcare, finance, automobile, energy are already using this platform for various reasons. However, these developments are at a very nascent stage, and still, a lot needs to be done in this domain. When we are talking about recent technological development then how can we undermine digital identity which remains an area of concern for many?
Digital frauds, data hacking, change of data, etc. are some of the common problems that most companies and individuals are facing. In times like today where digital presence has become mandatory, ensuring the privacy of data, information and account is the most important thing for anyone. Despite so many steps in this direction, there hardly seems to be a complete solution to the same.
Data worth considering
Did you know that last year around 16.7 million people in the US had fallen prey to identity fraud which is 1.3 million higher than the numbers in 2016? This whopping rise in the number frauds clearly indicates the need for a system that can ensure the safe digital presence of every individual.
Now the question arises, is there a platform or tool or software that can ensure the security of data and also ensure that there is no fake account under the same name. Well, Blockchain can be a probable solution for this.
Provenance, transparency, immutability, and decentralization are the underpinnings of Blockchain technology and also a great help when it comes to ensuring digital safety. Let’s analyze how will Blockchain prove beneficial.
What is Blockchain technology?
I have already highlighted the key features of Blockchain technology that can be of use when it comes to ensuring the safety of identity and accounts. But, what is Blockchain?
It is a distributed digital technology which means that any information or data exchange is spread across the network. Everyone who is a part of this Blockchain network can see this data and also validates and verifies. It makes Blockchain platform a decentralized one.
Furthermore, all the data that find an entry in the ledger are in chronological order, thus making it easy to track any information and at the same time, it will also be difficult for anyone to change the data.
- One of the key feature of Blockchain i.e. it’s a DLT technology states that all the data will be shared in a peer-to-peer network. There is no central server where the information is stored, instead, everything is shared in the network making the system transparent and easily accessible.
- The fraudster uses various methods to create a fake account of hack account which includes altering information, deleting, changing electronic or paper documents. Shared ledger can help in reducing the fraud as it enhances the transparency and any kind of fidgeting with the data can be easily traced using DLT.
- Domain Spoofing is very common nowadays. In this, a low-quality website X showcase themselves as high-quality website Y. So that X can capture higher CPM and ad spent on Y. Things have been done in this direction but none of these has been able to completely cure the problem. However, with Blockchain, we can have a solution to this problem. By cryptographically logging every as an impression from every partner we can resolve this problem. To break this, the hacker would need to crack 256 bit encrypt which is very difficult. Thus it can easily help in cutting down the fake website and fraudster.
- Immutability of data is yet another key feature that Blockchain has that makes it almost difficult to change or alter the data. Thus, making it difficult for anyone to change the information or create a fake account in the name of someone. Such problem has been frequently encountered while using social media account. At the same time, such kind of acts can lead to hacking of data or other information, but with Blockchain it will be almost impossible for anyone to hack or change the information nullifying the probability of changing the account or creating a fake account.
As Blockchain continue to solidify in our life, so does its application. It has disrupted most of the industries positively and if we can have this technology resolve the issue of fake account and fake digital identity threat, there is a greater probability of having a system which can guarantee a transparent and secured system. However, an important point to note here is that Blockchain is not a holy grail that will solve every problem. Blockchain itself has certain issues which need to be recovered before making it a part of the mainstream application.