Topics In Demand
Notification
New

No notification found.

The Importance of Secure, Verified Identity in a Digital World
The Importance of Secure, Verified Identity in a Digital World

64

0

 

 

Our identity is not confined to physical documents like passports or driver's licenses. Instead, it exists as a complex web of digital attributes, credentials, and personal data, scattered across multiple platforms and institutions. How this identity is stored, shared, and secured plays a crucial role in enabling trust, reducing fraud, and ensuring privacy.

The Challenges in Storing and Sharing Identity

Centralized Storage Risks
Most traditional identity systems rely on centralized databases, where all user information is stored in one place. While convenient, this creates a single point of failure. If compromised, the breach can expose millions of records, as seen in high-profile data breaches affecting governments, banks, and corporations.

Lack of User Control
In centralized systems, users have limited control over how their identity data is stored and shared. Organizations often collect excessive information, sometimes without explicit consent, leading to misuse or unauthorized sharing.

Interoperability Issues
Different organizations and platforms often use incompatible systems to store identity data, making sharing cumbersome. The lack of standardization means users must repeatedly verify their identity, increasing friction and inefficiency.

Privacy Concerns
Sharing identity data involves revealing sensitive information, often more than necessary. For example, proving your age to buy alcohol shouldn't require sharing your full address or other personal details, yet traditional systems often mandate such over-disclosure.

Data Portability Challenges
Users find it challenging to transfer or use their identity data across platforms, leading to vendor lock-in and dependency on a single service provider.


Storing Identity Securely: Modern Approaches

Decentralized Identity Systems
Decentralized identity systems, such as those based on blockchain or distributed ledger technologies (DLT), eliminate the need for centralized storage. Here’s how they work:

    • Self-Sovereign Identity (SSI): Users store their identity credentials locally (e.g., on a mobile device) or on a distributed network, maintaining full control. Verification happens through cryptographic proofs, eliminating the need for a central authority.
    • Tamper-Proof Records: Blockchain ensures that identity records are immutable, timestamped, and verifiable, reducing the risk of unauthorized changes or corruption.

Encryption
Encryption secures identity data both at rest and in transit. Advanced encryption standards (AES) and public-key cryptography ensure that only authorized parties can access or decrypt sensitive information.

Tokenization
Sensitive identity data can be replaced with unique tokens that represent the original information. Tokens can be stored securely while the actual data resides in a secure vault, minimizing the exposure of sensitive details.

Edge Storage
Some systems allow users to store their identity data on personal devices rather than in centralized servers. Biometric locks and device-level encryption add layers of security, ensuring data remains in the hands of its owner.

Zero-Knowledge Proofs (ZKP)
ZKP allows a user to prove something (e.g., they are over 18) without revealing the underlying data (e.g., their date of birth). This cryptographic technique ensures privacy while enabling secure verification.


Sharing Identity: Best Practices and Technologies

Selective Disclosure
Modern systems empower users to share only the specific information required for a transaction. For example:

    • Instead of sharing a full government ID, users can share a verifiable claim like "I am over 21," signed by a trusted authority.
    • This approach minimizes over-disclosure and aligns with data minimization principles.

Digital Identity Wallets
Digital identity wallets are apps that allow users to store and manage their verified credentials. Features include:

    • Granular Sharing Controls: Users can approve or deny sharing requests and choose what information to disclose.
    • Verifiable Credentials: Organizations issue tamper-proof digital credentials (e.g., proof of employment or a university degree) that users can share as needed.

Decentralized Identifiers (DIDs)
DIDs are unique, self-generated identifiers stored on a blockchain or decentralized network. They enable:

    • User ownership of identifiers.
    • Trustworthy, interoperable sharing between platforms without reliance on a centralized authority.

Smart Contracts for Conditional Sharing
Smart contracts on blockchain can enforce conditions for sharing identity. For example:

    • A rental company could automatically verify a customer’s driver’s license via a blockchain-based system without accessing the full document.
    • Once the conditions are met, access is granted, and the data remains secure.

Access Controls and Revocation
Users must have the ability to:

    • Revoke access to shared information at any time.
    • Monitor who accessed their data, when, and for what purpose through audit trails or transaction logs.

The Path Forward

As we transition into a digital-first world, secure and efficient identity storage and sharing are no longer optional—they are foundational. Emerging technologies like blockchain, cryptography, and decentralized models are redefining how identities are managed, empowering users with control, enhancing privacy, and fostering trust.

For businesses and governments, adopting these technologies means not only enhancing security but also building stronger relationships with users by respecting their privacy and autonomy. The future of identity is here, and it’s built on trust, transparency, and technology.

 


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


images
Giri Venkataramanan
Co-Founder & CTO - MPloyChek

© Copyright nasscom. All Rights Reserved.