Systems of identity have been critical to the human experience throughout history. From identity emerges trust and accountability. But on the Internet, no system exists to reliably verify identity, so people can assume any identity they want. Because of this, the Russian government can create a campaign of misinformation without anyone realizing, or a hacker can use your credit card to buy himself a new kitchen table on Amazon.

Source: Más México

Authenticating online identity has evolved since the Internet’s inception, but it’s still heavily flawed. In the first iteration of the Internet, there was no standardized way of authenticating users. Each website offered their own local accounts with usernames and passwords. You’d have an MSN account, a Yahoo! account, and a MySpace account, each with its own username and password. Not only was this tough to maintain for the user, but also it created many different troves of data for hackers to exploit.

The current iteration is a bit smarter, adopting a semi-federated model in which your most-used online accounts, particularly those for Facebook and Google, are now more portable. You use your Facebook account to log into Spotify, Tinder, and Seamless. You use your Google account to log into YouTube, Slack, and Dropbox. This is easier to maintain for the user, though trusting third-party data custodians presents security problems, illustrated by the recent Cambridge Analytica scandal. Users still do not have true ownership of their online identity including their data, which is stored by companies like Google and Facebook.

But what if instead of applications and websites on top of the Internet verifying our identity, the Internet could recognize who we are and let us roam freely? The next iteration of authentication could very well take the form of a concept called digital identity, a common identity layer that allows people to have a “self-sovereign” identity that they control. Think of it like an online passport. When surfing the web using a digital identity, websites can automatically confirm that you are who you claim to be. By leveraging blockchain technology, people can create digital identities that are secure, portable, and verifiable. Users can also store and control their online data rather than turning it over to third-party services like Google and Facebook.

Companies like Civic, uPort, and even IBM, as well as non-profits like the Sovrin Foundation, are already building digital identity solutions. These companies are creating services to fully encrypt users’ identity data such as medical records, educational and work history, and online accounts, and store them on a blockchain. Going forward, these companies will partner with online services like travel companies and job search sites, which will accept the digital identities as authentication. Sign into Civic or uPort with a biometric like a fingerprint and seamlessly access any site you want with all of your data securely stored on the blockchain.

Instances of identity theft, data hacks, and fraud will be less frequent if a hacker has to do more than just enter your username and password for authentication. Vetting job candidates, property buyers, and investors in your company will be much easier when people have a digital identity that securely stores all of their verified information. Some digital identity solutions have already begun incorporating zero-knowledge proofs for an extra layer of privacy.

With blockchain-based identity, you can have a digital clone that verifies your information, protects your data, and prevents fraud and identity theft. For billions of underserved people in developing countries, a digital identity could mean access to healthcare, financial services, and education. For the rest of us, it means improved security, privacy, and convenience.