BLOCKCHAIN IN IDENTITY MANAGEMENT - A SURVEY

Abstract

The purpose of this paper is to show the possibilities of applying blockchain technology in identity management. Although secure information exchange is possible through centralized systems, there are still concerns about the protection of confidential data of individuals. Bearing in mind that we leave different information about ourselves and about our activities on the Internet on daily basis and that this data is collected without our knowledge, it is clear that we need to focus our attention on protecting the digital identity of each individual (Rathee &Singh,2021). To achieve the security and privacy of scattered digital identities of individuals, it is necessary to authenticate and verify the digital identities of individuals. Management and verification of digital identities is perhaps the most important area of application of blockchain technology. According to official data, in 2017, 16.7 million people in the United States were victims of identity theft, which resulted in financial damage for of 16.8 billion dollars (König, Francis, Joshi, Robillard, & Hoey, 2017). Millions of people around the world have been threatened by leaks of data containing the personal information of individuals. Online authentication systems are still based on centralized databases managed by third parties who can manipulate the same data without the user's permission (Moyle, Arnautovska, Ownsworth, & Jones, 2017). The possibility of identity theft creates a sense of anxiety requiring urgent application of highly effective identity management systems. More safe methods of storing and exchanging sensitive data need to be developed. The application of blockchain technology can help solve the mentioned issues which are present in centralized systems.