Blockchain technology has great potential to change the way digital data is verified, stored, and shared. Let's take at look at why 👇
, its authenticity can still be verified. In other words, you could use ZK proofs to prove you are old enough to drive or enter a club without revealing the exact date of your birth.The concept of self-sovereign identity refers to a model where each individual user has full control over their data, which could be stored in personal wallets . In this context, one could decide when and how their information is shared.
While blockchain technology is mostly used to store and exchange cryptocurrencies, it can also be used to share and validate personal documents and signatures. For example, a person might have a government agency sign off on their status as an accredited investor, then transfer confirmation of that fact to a brokerage via a ZK proof protocol.
The second advantage is the fact that blockchain-based digital ID systems can be more reliable than the traditional ones. For instance, the use of digital signatures could make it relatively easy to verify the source of a claim made about a user. Other than that, blockchain systems would make it harder for a person to falsify a piece of information, and could effectively protect all sorts of data against frauds.
Synthetic identity involves combining valid information from different individuals to create an entirely new identity. Since each piece of information used to create a synthetic identity is accurate, some systems may be tricked into recognizing the fake ones as authentic. This kind of attack is widely used by criminals in credit card frauds.
However, the problem can be mitigated through the use of digital signatures so that made-up combinations of documents won’t be accepted as records on a blockchain. For instance, a governmental institution could provide individual digital signatures for each document but also a common digital signature for all documents registered by the same individual., which is more likely in small blockchain networks.
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