Customer data is validated by a third party and the certificate of that validation is put onto a blockchain. For important information like birth certificates and drivers’ licenses, the validator is probably a government or other trusted organization. These certifications are typically tokenized addenda to their offline counterparts. For example, a university likely offers a paper diploma, online access to the graduation information, and a blockchain validation token. Other types of personally identifiable information could be validated in other ways, such as credit information through social claims.
The data has already been validated and is trustworthy. This way, people accessing the information on the blockchain do not need to re-validate the data every time. For example, a user can present their proof of address to a mortgage broker and an employer without each company having to validate that data with a third party.
Users choose who can access their identity data, giving proactive consent. This consent can also be revoked at any time. Users have more control over how much of their data are visible and to whom. Additionally, others will have to store less of their data on their own systems, reducing the likelihood of important data being vulnerable to attacks on corporate systems.
Now we have defined these characteristics, what are the situations where we can streamline everyday interactions? Let’s think about identity in a looser definition, not just “proving who one is” legally, but tying identities to eligibility for other services. Identities are the foundation for many other actions, such as:
In part 2, we will give examples of these daily use cases for blockchain-based identity.