Digital Identity: Leading the Way to the Future Identity Space
                           Shambhavi May 2, 2022

For decades, proving the identity was mostly straightforward through traditional methods. For activities such as renting a car, booking a hotel, opening a bank account, availing a loan, etc. we were present “in-person” with some required physical documents, making it easy to be verified, even if it was time-consuming. However, this method had its cons: documents can be forged. In the last few decades, technology significantly evolved, and we have shifted towards a digital ecosystem.

The main purpose of this change is to make services available for consumers “anywhere and anytime”, without requiring them to be present “in-person”. While there are checks in place to authenticate or verify the identity digitally, digital documents can still be forged. The world is moving fast towards digital services in every industry, increasing the importance of digital identity more than ever.

Furthermore, the COVID-19 pandemic has fueled the debate around physical identity vs “digital identity”, which has emerged as another foundational building block for the new digital economy, especially for individuals and enterprises enabling easy & secure ways to prove their identity credentials without sharing data. Over the years, we have seen a steady transformation in the way we live and work, from an analog world to a digital one.

Challenges With Implementing Digital Identity Across Industries 

Digital identity becomes progressively important to organizations and consumers, as a matter of privacy and personal data protection. However, before the mass adoption of such solutions, organizations must prove that they have the capability to protect their user’s data and privacy.

There are many digital identity schemes, regulatory bodies, organizations, and networks that exist today, and they all share a fundamental challenge: adoption. There is no clear standard across industries, geographies, or use cases, and it is unlikely there ever will be.

Some of the key challenges for digital identity providers:

  1. Lack of standardization: No standard formats for digital credentials such as name, address, date of birth, ID cards, health cards, and driving licenses to provide the necessary evidence.
  2. The veracity of credentials source: There are no standard methods to verify the source and integrity of digital credentials.
  3. Implementation complexity: The technological advances in the past years did not reduce the problem.

How can blockchain-based digital identity address this challenge

The emergence of distributed ledger technologies such as Blockchain offers new approaches to digital identity management. And with the rise of IoT comes a new reality in digital identity: “On the internet, no one knows you are a robot pretending to be human”.

Blockchain solutions are rapidly growing and being explored, given their built-in transparency, trustworthiness, user control, and security, which are also key factors for Digital Identity.

Blockchain for enterprises can easily power a framework of decentralized identity. It also offers a readymade infrastructure as well as security, by putting end-users fully in control and allowing different service providers to share the identity verification attestations. These are called self-sovereign identities which would allow users to:

  1. Control their own identities
  2. Access and update the information, even though third-party verification may be required with some claims
  3. Choose data information that users prefer to keep private
  4. Transport the data (to another jurisdiction if they relocate)

Such systems require powerful algorithms to validate identity. There is no dependency on a specific platform or architecture, and the sharing of data must be made with user consent. Organizations should also be able to only provide access to what is needed, not all the information.

Banks will benefit from digital identities with less overhead costs, new revenue opportunities, and more secure and accurate authentication.

It also enables a better customer experience, faster account opening, and other financial services that become smooth and easy to access.

How do we make this real?

To unlock the full potential of digital identity, organizations must understand the business outcome, before deciding on technology goals or needs. As we know, trust is the fundamental base of relationships, and successful digital programs enable trust. Organizations must be acquainted with their responsibilities and develop a well-considered approach to handle and protect the personal data of customers.


Digital identity is becoming a critical focal point for service providers. Creating a functioning digital identity ecosystem that delivers value to the customer will take time, determination, and patience in dealing with different types of stakeholders, but it’s worth the effort. Digital identity will help us provide a seamless experience for both enterprises and the end customers.

About the Author



Business Analyst, Cloud Engineering Studio, Brillio

Experience in emerging technologies with a keen interest to drive new solutions and products to market by collaborating with business and internal stakeholders. Expertise in developing technology POVs, GTM attack plans, win themes, and emerging tech use cases across the globe for multiple verticals. Brings in the right mix of business and technical competency

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