A keen write-up on how blockchain can help digital identity management

Every human in the world has his/her own unique identity right from birth. In a sense, identity consists of one first and last name, date of birth, nationality, religion, and much more, which is recorded on a birth certificate or a passport or any government-issued ID. 

Almost 1.1 billion people worldwide don’t have a way to claim ownership of their own identity.  A person without identity or a valid proof cannot own property, vote, receive government service, and even do not have access to open a bank account. 

The main problem is these forms of identification require immense maintenance of physical documents. So to overcome such a problem, blockchain came into existence. 

Some of the uses cases of blockchain in identity management

Decentralized and digital identity can be used in many ways. Here are some top use cases of blockchain digital identity management.

Self-sovereign identity

The self-sovereign identity is the concept in which people and businesses have the ability to store their own identity data on their own devices. 

People can choose which information can be shared with validators without relying on the central repository for identification data. 

These entities can be created independent of any nation, state, corporations, and even global organizations. 

Data monetization

Data monetization is a process of using personal data for quantifiable economic benefits. The value of a record increases when it contains personal data.

As per the survey report, there are quintillion bytes of data created every day by 4.39 billion internet users. It has been planned that 60% of global GDP is expected to be digitized by 2022, meaning personal data will continue to rise in value. 

It also provides users an option to keep their data hidden and protected from the corporation or governments. 

Data portability

Data portability grants the users to transmit their personal data directly from one controller to another.  

This has the potential to enhance the user experience, cutting down on the need to verify their identity across various services and platforms. 

The data portability reduces users’ friction while simplifying the sign-in process, which increases user adoption. 


Blockchain digital identity is benefiting several industries by reducing government bureaucracy, shaping many sectors, and detecting academic fraud. It also creates better Bank experience and helping many companies to avoid personal data breaches. 

Published by Katrin Kunze

blockchain and crypto trader

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