As Bitcoin and other cryptocurrencies gain value and popularity, more people will become familiar with blockchain. While blockchain is most associated with cryptocurrency, it’s easy to overlook just how many uses and benefits the technology has. Blockchain could fundamentally change every single industry with its focus on security, transparency, and privacy.
The Sovrin Network
Individuals don’t often consider the impact that blockchain has. Many companies do and have joined to form a nonprofit organization known as the Sovrin Foundation. The Sovrin Foundation is dedicated to creating a network that will enable secure online exchanges of information and credential. Using blockchain technology, the organization is working on building what they call the Sovrin Network.
The Sovrin Network’s goal is to allow each user to maintain a digital wallet containing identification credentials, banking and other financial information, and even employment or company ID.
For the companies that are part of the Sovrin Foundation, enough was enough. The organization was founded as a response to what many see as a fundamental flaw in the infrastructure of the Internet, security. With the rise in compromises records from data breaches and cyber attacks, the companies came together to create an improved system for confirming one’s identity online. The hope is that this will limit the chances of identity-based cyber crimes.
The intention is to create a standardized means of establishing digital credentials, as well as a verification method, all by leveraging blockchain technology.
How Will It Work for the End User?
First, people will need to adapt to technology and network. We know that when something like blockchain, or more specifically the Sovrin Network, is introduced, there is hesitation among the general public. Not everyone is going to jump aboard from day one.
It’s up to organizations, like financial institutions and businesses, to lead the way.
By using blockchain, different institutions could securely contact one another when seeking out information about you. When they do, only the minimal amount of information needed to satisfy the request would be shared. Let’s say you’re trying to take out a bank loan. If the bank and your employer were part of the blockchain network, your employer could confirm you meet the income requirement for the loan without sharing your salary.
As you can see, blockchain prioritizes user security and privacy, while providing transparency.
Is This Approach Really Better?
The jury is still out. We are increasingly reliant on data and information. We need to keep it as secure as possible. Any way we can ensure both security and privacy is something that we should at least consider.