The online ID could be the first product revolutionized by blockchain technology. Daniel H. Schulman, the PayPal’s CEO said in an interview that they have recently discussed the possibilities of creating an encrypted, decentralised online ledger system through blockchain technology, which could support Bitcoin and many other advanced projects.
Few of the main advantages having a payment system based on blockchain technology is that the payments are not controlled by middlemen, so you are not charged a fee, and the payment is secure, safe from hackers as gets changed once they are on the ledger.
But we do have drawbacks with this technology, that is the processing of transactions will not be quick as our traditional banking system. Secondly, the policy and regulation of payments based on blockchain technology are very hard as the sender and the receiver are completely anonymous on a blockchain payment and this is a major issue as this could lead to money laundering etc.
The Real Identity
The reason why Schulman was very confident about the potential for blockchain on online identity is that the weakness of technology in payments I.e., anonymity. The cybercrime stems from the basic root that we don’t know the who we are dealing with in a transaction. So Schulman believes that if we could create a system wherein all our online identities are encrypted, we could safely trust the person who we are dealing with online, and it seals the gap in the payment system.
Many countries have started to offer their services completely online, like issuing a passport, driving licence, taxation, paying bills etc., but this has lead to lead to cybercrime. For example, the UK government is losing £50 billion worth of government services to fraudsters every year. Because these reasons the governments are currently exploring blockchain as a prospective solution.
Besides this blockchain can facilitate truly authenticated online voting systems, guaranteeing every person is who they say they are. The UK government also looking into adopting this. And recently Australia has trialled this technology for a minor council election in South Australia.
But still, this technology is not complete, the ID-verification are still better in our traditional technologies. To trial on a large scale, New South Wales has decided to use blockchain technology in the driver licence registration at the end of 2019. Also, China is aggressively working on the blockchain technology and wants to implement on their services, as they have a huge market.
The opportunity for business growth
Now, many blue-chip tech companies are marching towards this blockchain technology, as they see blockchain ID are the future and there is an opportunity for a very big market. Following this, IBM has already worked on an “alpha” version of an ID system name IBM verify credentials, supported by blockchain technology. Microsoft also has jumped into this venture and working on their blockchain identity systems on the Azure cloud computing platform
Also for the corporate companies, this blockchain technology will benefit a lot, by helping to make the online retail transactions reliable and safer by correctly authenticating the true buyer. And this service will be monetized as a transaction fee so we are talking here about billions in revenue!
The blockchain technology is fanfare or not, potential revenue is what attracts companies like PayPal to actively work to adopt this technology. Because no one knows this blockchain technology encrypted ID could be the next big thing, and the companies don’t want to be another Kodak!