Once a child is born, he is tagged with an identity until his death. Now imagine that he loses his identity to a fraudster, he would have to prove his identity or lose his funds as well his name. And this is where blockchain technology comes to play. The distributed ledger technology (DLT) offers a lot of potential to vital records. It is traceable, immutable and its ability for data storage has endeared it to many industries. Since it is seen as a technology that offers secure storage of all kinds of records and why not store identity certificates on it? This is one step ahead in curbing identity theft and with the Algorand blockchain identity management can be achieved. 

Why Digitise Identity Certificates? 

We were all given an identity at birth and it was certified with a birth certificate. At death, our identities are also certified with a death certificate which is the last identity certificate we get. These documents are essential and must flow in an auditable and secure pattern. Now, this is where the problem lies. While some countries have made efforts to digitize their identity management systems, some other countries are heavily reliant on a paper chain that makes the process cumbersome and difficult to track. For instance, identity management in the US is now flowing through a digitized path. However, the process for recording birth or death certificates is still fragmented and cumbersome.

Every bit of an individual's identity is conferred on them by the government. Although your parents give you a name and the government is the custodian of the identities of its citizens. Therefore it is tasked with the duty of ensuring that IDs in various agencies are properly validated. The government also ensures that identities are stored and issued without increasing opportunities for fraud, errors and security breach. 

However, so far, there have been numerous cases of identity breaches and the blockchain can help governmental agencies verify birth registration information by integrating the existing standards of identity certification. For instance, parents can secure birth certification on the blockchain and hand over control of the data when the child is of legal age. Users will then have the ability to grant access to the cryptographically stored information when needed. 

What Can Algorand Do for Identity Management?

Create Data Security

Currently, a bulk of our most valuable identification information is stored on centralized government databases protected by software with numerous single points of failure. personally identifiable information (PII) is the most targeted data for breaches according to reports. And large, centralized systems containing the PII of millions of user accounts are incredibly appealing to hackers. In 2018 alone, exposure of 2.8 billion consumer data cost about $654 billion. With the use of Algorand, decentralised Identities (DID) can be created. Users can give people access to their identities through a public key and can control their own identities using their private keys.  

Fraudulent Identities

It is also easy to have your identity stolen as users have to juggle their identities across various platforms. Since the centralised system is fragmented, it can be easy to lose track of where an individual's identity got stolen. However, with an Algorand based DID, it can be tracked. Furthermore, individuals can create multiple identities for different reasons. For instance, if an individual needs proof of age at a bar, there is no need to show your entire ID which carries other information of yours. You can simply show proof of age and that's all. In the case of creating multiple identities, each identity gas to be verified by a predetermined set of rules. So when an identity is stolen if it triggers a contrary behaviour, it can be flagged and the owner can be saved from ID theft.  

The Future of Algorand based Identity Management

Studies have already shown that there is a market for cloud-based identity management software. There is an optimism that the market which was worth $2 billion in 2017 will grow to $5.76 billion by 2023, a whopping growth prediction of 18.6%! By integrating Algorand to ID management, it would make it almost impossible to defraud the system. To do so, a cybercriminal would need to gain access to each identity stored in a particular block or gain the majority of the committee members of the Algorand platform whose sole duty it is to approve transactions. 

Instead of a centralized database where people’s bank cards, social security numbers and certificates are stored and access is made easy, IDs are stored on a decentralized platform. A centralized architecture makes it easy for a single point of failure and a large attack surface. However, with the Algorand blockchain, identities can be tied to the use of public-key cryptography making cyberattacks far less scalable. The identities will be encrypted within the Algorand blockchain. Also, the need for passing your ID through numerous middlemen in the fragmented centralised system, costs can be cut down as identities can be verified instantly. With the use of the Algorand smart contracts, access requests will be made more efficient. Users can have self-governance over their data and KYC will be made easier than it currently is. Just by scanning a QR code, a user can verify their identity anywhere in the world. Also, ID auditors will find their jobs easier and less cumbersome.  Users can pair any certification from their health records to their school transcripts on the Algorand blockchain and verifier can be used to ascertain ownership. 

Conclusion

There is a future for Blockchain-based identity management. Several blockchain solutions have already been created surrounding the topic. For instance, Vitachain has collaborated with health institutions to issue death certificates on the blockchain. Other platforms such as Civic, help you store your personal data on your smartphone.  Equally, platforms such as Sovrin and Blockstack ensure that users' data are encrypted.  The Algorand smart contract will enable developers to create apps that will aid data storage. The bottom line is that users data are protected from theft and ID management will become affordable.