Will fragmentation kill blockchain adoption in the identity market?

Blockchain identity recognition technology can ensure that users have full control over their identity information. At the same time, this technology can also make it easier for Internet users to log into their accounts seamlessly, bypassing complex login methods like a maze, unlock personal information, access services or trade digital assets.

However, while various startups and technology companies have shown amazing innovation and creativity, I am concerned that the diversification of blockchain solutions will fragment the user base, making it more difficult to scale user applications.

In its simplest form, blockchain can be used as a unique, irrefutable and unchangeable method of identification, because the “key” to identification is the identity itself. But what if different services you use require different identification keys?

Imagine that you have 5 door keys. Depending on the date or the door you want to open, you need different keys. Or you have 5 houses in different parts of the world. You must find a way to distribute and manage the keys of these houses. Maybe you can manage it well, but it will definitely be tiring.

In the Internet age, we have to use our brains or notes to remember various passwords, and we also have to worry about password attacks or forgetting passwords. So, I expect blockchain technology identity and access solutions to improve this situation.

Solution Formation

In the blockchain space, a variety of solutions for identity, personal security, and access to data and services have emerged. These solutions use different approaches, some using new hardware, some from the software side, and some integrating with existing B2B solutions.

It can be roughly divided into the following categories:

hardware:

Similar to hardware such as passports, government-issued IDs (such as driver's licenses), etc. In the blockchain field, some companies' solutions help with identity recognition by adding biometric data, such as startups ShoCard and Case.

software:

The closest example is OAuth-based identity: this is required when signing up for a website using a Facebook, Twitter or Google account. But blockchain solutions are exactly the opposite: first register your identity yourself, then link your social account. Companies like Netki, OneName, BitID and Identifi are working on this approach.

Integrate existing solutions:

The first two approaches are from the customer's perspective, while this approach integrates other available solutions. Some companies are interested in this approach, such as Cambridge Blockchain, Trunomi, uPort, Tradle and Ripple.

Customer Question

However, there are still some questions to be raised regarding the implementation and development of blockchain technology.

For example, it is not yet clear what applications will advance these new forms of identity solutions.

Facebook and Google both have their own special apps to push us towards usage. However, in the blockchain space, most identity verification solution providers are rushing to launch their own solutions before moving on to app development.

These applications also present some key issues, including:

1. Since blockchain solutions can bring about e-wallets, can they also bring about “e-passports”?

2. What does portability of identity actually mean?

3. What role do smartphones play?

4. What role does zero-knowledge technology play in protecting transaction confidentiality and personal privacy?

5. Will users be willing to manage these more complex security rules and access themselves?

Business concerns

From the business side, the question is how to provide these services without running afoul of regulators.

Companies should ask themselves:

1. How can we make every user confident that they can easily manage and access their own data?

2. Can we configure access to information in a more granular way?

3. Do we need new institutions to certify these identity systems?

4. What happens if we lose our security card or private key?

5. How do these new identity solutions relate to existing know-your-customer (KYC) systems? Can they facilitate anti-money laundering and combating terrorism?

6. Will this lead to more consumer or enterprise applications?

Original article: http://www.coindesk.com/fragment-blockchain-identity-market/
By William Mougayar
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/fragment-blockchain-identity-market)