The widespread usage of the internet and on-cloud storage has led to significant advancements in blockchain and cloud technologies.
The need for cloud storage grew throughout the late 2000s as several IT companies began utilizing it. Additionally, many firms and governments relied on on-chain storage to secure the regularly procured data.
The importance of on-chain data storage and security has risen with blockchain technology. According to PR Newswire, the data storage market is projected to reach $128.94 billion by 2030. With blockchain cloud storage becoming a reality, it is clear that it will have a strong presence in this sector.
These days, information about every person all across the world is uploaded online for identity verification.
For banks, digital ID verification is extremely helpful in tracking a user's daily activity. Governments, corporations, and even educational institutions rely on these on-chain storages. It validates the individual's identity and states that they are a part of the organization.
To provide security and prevent data breaches, these IDs are hosted on intranets and held on a remote server. Most institutions offer physical or digital IDs that verify the user identity automatically and are easy to cross-verify.
Uploading any data on the chain always comes with risks. Institutions must be more careful about data security, especially when customer data is involved.
Due to the rise of scams and hacks, securing data will be possible when disputes are quickly discovered and fixed.
These kinds of severe data mishandling instances concern both companies and individuals. There is a need for stronger security systems to resolve this and oversee the problems:
KYC details, digital IDs, and other personal information are very vital sets of data for individuals. Protecting them is just as important as tracking data.
In response to the growing demand and market growth, institutions are leaning toward blockchain technology for digital ID verifications. This transformation is referred to as digital Identity verification 2.0.
The data are turned into codes and can only be accessed through private keys. The information is thus considered safe right from the point of entry.
Due to this, several use cases of blockchain in fintech and traditional financial entities for digital ID verifications are emerging and being considered. This helps financial sectors prevent human errors and protect consumers' financial data from hacks.
The Canadian federal government facilitated the open banking process, which lets users share data with external entities. Thereafter, the Canadian Bankers Association opted to embrace digital ID verification to safeguard their users' data and prevent data leakage.
As per their statement, Canadian banks partnered with SecureKey Technologies Inc., a leading identity authentication provider, to develop a Blockchain-based digital ID verification system.
Banks like the Royal Bank of Canada, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Desjardins Group, and Toronto-Dominion Bank were the first to attempt this. This practice is now also being followed by the Bank of Montreal and the National Bank of Canada, along with an insurance company, Sunlife Financial.
Greg Wolfond, the CEO of SecureKey, stated that with this collaboration, they hope to share data more securely than ever before.
Having a proper digital identity is essential to lead a thriving and comfortable life in society. Although a centralized ecosystem offers the necessary frameworks, the security of data is now in doubt due to cyberattacks. With Blockchain storage, cyber-attacks become more expensive and difficult for perpetrators to crack in because of cryptography.
The use of blockchain will definitely influence data security, as well as numerous other factors like cost cutting, data controls, etc. Therefore, the global economy will undoubtedly be impacted by the massive growth of the digital identity verification industry over the next ten years.
