Blockchain technology has the potential to address most of the concerns related to digital identity and enhance the security and effectiveness of existing voting systems. Several blockchain startups have already entered these sectors and contributed to the security and efficiency of government data and processes.
The 5 Biggest Blockchain Trends In 2022
Digital Identities
When it comes to the security industry, blockchain-based identity management can offer numerous benefits. Currently, digital identities face various issues. It is relatively easy to create fake identities or steal someone else’s identity. Passwords, commonly used for identity authentication, are not very secure, and the databases storing passwords are often targeted by hackers.
Once a database is breached, the hacker can access all customer data in the system. Blockchain technology could help address some of these issues with digital identities. Blockchain-based identification systems are secure, tamper-proof, unique, and almost impossible for unauthorized sources to access. Companies like ShoCard are already developing such systems. Additionally, various applications utilize blockchain to store birth certificates, residency information, marriage certificates, driver’s licenses, digital identities, passports, and more.
Passports of the Future – ShoCard
ShoCard is an application development company collaborating with the blockchain company Blockcypher. They have created prototypes that enable users to establish their identity within a secure blockchain environment. The ShoCard ID app is available on mobile phones and can securely share various credentials.
Prove your identity with ShoCard
Smartrac
You may not be familiar with Smartrac, but you likely use their technology every day. Smartrac is the leading provider of radio-frequency identification (RFID) tags and other identification chips found in passports and ID cards. One of the major challenges in combating identity fraud is verifying the authenticity of the underlying documents used to create these identities. Currently, documents like Social Security cards, birth certificates, and diplomas are relatively easy and inexpensive to counterfeit. Smartrac is addressing this issue with technology. Their latest innovation, dLoc, is a software authentication solution that checks feeder documents against a blockchain record.
Document data is linked to a unique ID of the near-field communication tag (NFC) to create a 32-bit hash value that can only be recognized by the issuing agency using a private key. The hash value is stored in Smart Cosmos and backed up on a public blockchain. The next step involves verifying the document with dLoc, which can be done using a desktop reader or a mobile app on an NFC-enabled phone. This process accomplishes two remarkable things that were not possible with paper documents before:
1. Creates an unalterable history of the document, showing its true age and ownership.
2. Allows certificate authorities to cryptographically sign for the document’s authenticity. Even if the underlying paper used to create the document is stolen, it will not be signed. If a document is taken after issuance, it will be marked as stolen.
Digital Voting
After developing technology for digital signatures and digital identities, authenticating user identities for other online actions and transactions becomes relatively easy. This technology could potentially be used for digital voting in the future with some modifications to the blockchain platform. The main barriers preventing digital voting from becoming a reality are concerns about privacy and security.
Several companies have attempted large-scale digital voting, but only Estonia has achieved success so far. In 2014, Denmark implemented blockchain technology for small-scale voting, but it has not been expanded nationwide yet.
The Brazilian research institute is currently developing a voting platform based on blockchain technology to encourage public participation in government decisions and policy-making. The blockchain platform enables real-time transaction recording and data distribution across a network of computers. These unique features make it highly secure against hacking since the records created are immutable.
By utilizing a blockchain-based voting system, voters can verify if their vote has been cast while ensuring their privacy is maintained and their identity remains hidden. Additionally, digital voting would facilitate voting for individuals who live far from polling stations or those who have limited time after work.