Introduction
Identity and access management is essential in the modern world. It is so because this system makes it possible for a high number of people to have easy access to particular information and services. At the same time, identity management is responsible for denying access to those individuals who are not allowed to reach these data. The given area is in a state of constant development to provide users with enhanced services, and blockchain is one of those phenomena that are said to improve the present situation. Thus, blockchain technology is useful for identity and access management since it contributes to interoperability, increased security, risk assessment, and others.
Blockchain in Identity and Access Management
Blockchain is a young technology that makes a difference in the sphere of identity and access management. It refers to the fact that the given technology provides multiple users with a shared network where they can perform various tasks. To enter such a system, an individual should present their personal information to obtain a unique ID number that will serve as a passport. Once the required data are received, the blockchain technology encrypts them appropriately and stores them.
The definition above denotes that blockchain proves the presence of needed information without revealing it. A specific example is necessary to understand how the technology under consideration can be applied to the field of identity and access management. Thus, when a person wants to apply for a loan, he or she has to collect numerous identity documents and submit this personal information to multiple banking institutions.
The technology under consideration, however, makes it possible for users to provide these data only once. As soon as the given individual creates their account within a blockchain network, they are free to reach various banking institutions quickly and easily. When banking establishments obtain such a request, they do not see the client’s personal information. They can only check whether this person is authorized to get a loan since the information is encrypted.
The Impact and Benefits of Blockchain Identity Management
There is no doubt that blockchain technology has a significant impact on the modern identity management system. Firstly, this network is user-optimized, which results in the fact that people save their time and efforts with its help. Secondly, the technology offers transparency that makes it possible for various entities to trace transactions without delving into their details. Finally, the blockchain system is not limited to a particular country, which means that users can verify their identities even when they are abroad.
In addition to that, the technology under consideration implies some benefits for specific areas, and risk management is among them. Since it is an innovative option, blockchain deals with multiple risks, but regulatory ones are the most significant among them. When the given technology provides its services to various organizations and establishments, there is a risk that some of them imply different or even contradictory regulations. This risk becomes the most evident when an identity is verified across the border. Thus, extensive work is done to meet possible regulations and make blockchain transactions universally recognized and applicable. Once it is achieved, international companies can significantly benefit from using blockchain.
Furthermore, blockchain-based identity management contributes to enhanced privacy of personal information. Thus, Nuss et al. stipulate that this technology results in transparent monitoring of security-relevant events (167). It is achieved due to a multi-step authentication procedure where a user needs to present more details than a username and password. Consequently, it becomes more difficult for hackers to break accounts and steal personal information from Internet users. Then, the fact that personal data are encrypted for storage and distribution also contributes to higher privacy. This information denotes that the users of blockchain technology may not worry about the confidentiality and security of their details.
When it comes to compliance, blockchain brings an essential benefit that refers to the immutability of data stored. Once a person submits their personal information to the system, no one can change or delete it. That is why it takes little time for a transaction to be performed. In addition to that, those people who are responsible for performing such operations do not need to collect, check, and store any data because they are already within the blockchain network. As a result, compliance is enhanced, while a precise and comprehensive reporting system supports it.
Conclusion
Blockchain technology is an innovative option that can make a difference in the modern world. It is so because this technology brings some improvements to identity and access management, making this system more transparent and convenient for ordinary users. Similar to other new technologies, blockchain implies various risks that, however, are assessed and successfully overcome. Then, the given system draws specific attention to privacy and information security. That is why it stores and distributes encrypted information, while an authentication mechanism makes users present more personal details. Finally, the technology under consideration offers a significant compliance benefit that is represented by immutable data.
Work Cited
Nuss, Martin, et al. “Towards Blockchain-Based Identity and Access Management for Internet of Things in Enterprises.” Trust, Privacy, and Security in Digital Business, edited by Steve Furnell et al., Springer, 2018, 167-181.