# Blockchain: Helping secure our digital identities Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-07-28 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Blockchain Technology: Transforming Digital Identities Meta Description: Discover how blockchain technology and GSMA's Mobile Connect can revolutionise the way we secure our digital identities and establish trust in the digital URL: https://financedigest.com/blockchain-helping-secure-our-digital-identitieshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/virtual-touch-screen-interf-1736843649046-compressed.jpg) _**David Pollington**, Senior Director Technology, GSMA_ Blockchain, the backbone technology behind Bitcoin, has grown rapidly since its creation in 2008. Since 2013, Google searches of “blockchain” have risen by 1900% with 90 per cent of banks now exploring blockchain technology according to Accenture. Blockchain technology is being used in an increasing number of industries beyond financial services, including telecommunications, media and the public sector which is no surprise when many argue that technology may provide better security, transparency and efficiency. In fact, it’s not only businesses that are set to benefit from this technology, but millions of people too, thanks to the unique set of attributes that make it a useful tool to help secure our [digital identities](https://www.financedigest.com/transparency-and-decentralisation-the-remedy-to-our-digital-identity-fears.html "Transparency and decentralisation, the remedy to our digital identity fears"). The [digital world](https://www.financedigest.com/fraud-in-a-mobile-digital-world.html "FRAUD IN A MOBILE DIGITAL WORLD") has played a huge part in disrupting the process of identifying an individual. Historically, this process has been fairly straightforward. For example, a government institution could verify the name and address of a citizen by conducting identity checks with banks or telecommunication providers. As these organisations are regulated to ‘know their customers’, they are able to corroborate the information held by the government institution and therefore verify the identity. [Digital identities need to function in a similar way](https://www.financedigest.com/the-mammography-detectors-market-to-strengthen-by-the-way-of-digitized-polyphony.html "The Mammography Detectors Market to strengthen by the way of digitized polyphony") to this – but it’s much harder. In a digital world without tangible, in person interactions, establishing trust and ownership may be difficult. This is where the blockchain comes into play. Blockchain technology allows individuals, independent of each other, to rely on the same shared, secure and auditable [source of information for managing](https://www.financedigest.com/activist-investor-elliott-management-takes-stake-in-salesforce-sources.html "Activist investor Elliott Management takes stake in Salesforce -sources") identity. When using this technology in conjunction with a mobile [authentication service](https://www.financedigest.com/the-future-of-biometric-authentication-in-financial-services.html "The future of biometric authentication in financial services") like the GSMA’s Mobile Connect, blockchain could be the key to securing our digital identities. **Blockchain basics** When a [user’s information is added to the blockchain, it is inserted as a single block containing the user’s identity attributes and the user’s public key](https://www.financedigest.com/ammonium-phosphatides-market-2022-research-on-user-demand-size-applications-key-players.html "Ammonium Phosphatides Market 2022 Research on User Demand, Size, Applications, Key Players"), all signed with the user’s private key. At this stage, the level of confidence in the user’s identity is at base level. Other entities, such as a bank or electricity provider also represented within the Blockchain can establish relationships with the user by signing the particular attributes of the user that are relevant to that relationship. So for example, the Passport Office could sign the address, name, and photograph of the subject if the attribute values match those on record at the Passport Office. As the blockchain is used more and more, relationships are established for each person and confidence in the accuracy of the attributes (and the identity) grows. As more transactions take place involving that individual, the ‘reputation capital’ of the identity also grows. In other words, confidence in the identity’s accuracy increases as does confidence in the trustworthiness of the person behind it. And if any of the relationships change, this will be recorded in a separate block with a cryptographically signed timestamp that is visible to the entire blockchain. **The combined power of blockchain and mobile authentication** One critical aspect of any modern, [digital service](https://www.financedigest.com/bringing-financial-services-into-the-digital-era.html "Bringing financial services into the digital era") is finding the right balance between convenience and security. Security in the blockchain is upheld with public and private keys. The public [key is used to identify the specific user](https://www.financedigest.com/sodium-tetraborate-market-key-players-end-user-demand-and-consumption-by-2030.html "Sodium Tetraborate Market Key Players, End User, Demand and Consumption by 2030") involved, almost equivalent to a user ID. Whereas the private [key is the credential that the user](https://www.financedigest.com/nephropathic-cystinosis-treatment-market-analysis-of-key-players-end-user-demand-and-consumption-by-2027.html "Nephropathic Cystinosis Treatment Market Analysis of Key Players, End User, Demand and Consumption By 2027") needs to keep protected, the private key equivalent to a password or biometric. However, it is not that simple. A public key is not a convenient “user ID” and the private key is not something that can be easily remembered (like a password) or even be unique to that person (such as a biometric). It is a real [challenge to securely](https://www.financedigest.com/hybrid-working-and-the-continued-security-challenges-for-financial-organisations.html "Hybrid working and the continued security challenges for financial organisations") store the private key to ensure that it can’t be used by others while being able to easily use it to verify the associated identity. One solution is to introduce the concept of a wallet through which each [person can confirm their attributes and manage](https://www.financedigest.com/personalized-digitization-to-drive-the-scoliosis-management-market.html "Personalized digitization to drive the Scoliosis Management Market") their public and private keys. This wallet could be identified through a more convenient user ID, such as the user’s mobile [phone number](https://www.financedigest.com/your-phone-number-on-google-search-giant-now-takes-removal-demands.html "Your phone number on Google? Search giant now takes removal demands") and be unlocked using conventional multi-factor authentication. The individual can then verify their identity by proving that they own their private key. [Mobile authentication services like the GSMA’s Mobile Connect are an ideal framework for supporting such wallets](https://www.financedigest.com/the-future-of-mobile-payments-and-e-wallets.html "The Future of Mobile Payments and E-Wallets"). To put it simply, mobile authentication ensures the person attempting to access an [account is who they say](https://www.financedigest.com/midlands-accountants-say-its-never-too-early-to-get-financial-protection.html "MIDLANDS ACCOUNTANTS SAY IT’S NEVER TOO EARLY TO GET FINANCIAL PROTECTION") they are. Then by adding two factor authentication, the user is asked to verify their identity via their mobile phone via a pop-up challenge to enter their PIN or biometric password. This process happens whenever the user logs into their accounts, providing a very simple, convenient, and [secure way](https://www.financedigest.com/pandemic-loans-three-ways-to-secure-recovery.html "Pandemic loans: Three ways to secure recovery") of authenticating themselves and asserting their identity. The combination of Mobile Connect for administering the wallets and blockchain for administering the identity is a perfect [solution to providing digital](https://www.financedigest.com/staying-ahead-in-the-digital-era-a-cfos-roadmap-to-future-proof-solutions.html "Staying Ahead in the Digital Era: a CFO’s Roadmap to Future-Proof Solutions") identity and in a way that is ‘conveniently secure’. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---