77 / 100

When someone asks you, “Who are you?” there are many different ways you may respond. Generally speaking, one person fits into several social groups by taking on various identities. He/she is one, but there are plenty of other personalities to highlight on other social media platforms.

Every platform has a purpose, and each one has different highlights. As society has changed due to digital developments, this has both been a benefit and a curse. Many fakes, filters, and saturation have an impact on people in a range of industries.

However, Blockchain is here to help us recover from this mess. With its decentralized and permanent method, blockchain technology offers a secure digital identity on blockchain that addresses privacy concerns.

This blog will go over the working of digital identity on blockchain technology, as well as its advantages, needs, costs, and how to create an identification app that makes use of blockchain.

So, let’s begin!

 

What is a Blockchain-Enabled Identification App?

A digital solution that uses blockchain technology to safely store and validate personal data is known as a blockchain identification app. It provides a blockchain verified and decentralized substitute for conventional identity methods.

Blockchain makes guarantees that information is safe and cannot be readily changed or viewed without the right authorization by keeping it on a dispersed network of computers.

It is vital to know that the ICO token development solution has the ability to improve the efficiency and security of a number of operations in digital identity on blockchain. For instance, voting, passport control, and blockchain for identity verification systems.

 

How Does the Digital Identity on Blockchain Systems Work?

Right now, users need a better way to keep track of their identities than paper records. With the blockchain identity management app, people will be able to check and confirm their name in real time.

 

1. Installation for Mobile App

To prove who they are, users will first have to download the app from the play store or app store. A person will make a profile on the app after getting it to their phone.

After making a profile, the user will be given a unique ID number that will allow groups to view the user’s ID documents.

 

2. Uploading the Document

After getting an ID number, the user must upload government-issued IDs to the app. These will be saved in the IPFS with a hashed address kept in the blockchain. The app will get personal information from these IDs so that the user can blockchain verified their information.

It will be the user’s info. It helps people choose what information to give to businesses. No information about a person can be given to people who are looking for them without their permission.

 

3. Smart Contracts Generating the Trust Score of Person

Let’s say there is a score that tells you how trustworthy someone is. Smart contracts with business logic can use the information a user gives to make a trust score and a self-sovereign identity for that user.

 

4. Third-party Companies Requesting Access

If a private blockchain development company wants to see specific details about a person to make sure they are who they say they are, they will send a message to that person.

Once a user gives companies access to their information, those companies can use the blockchain identification information to make sure the person is who they say they are. Also, people will be able to see what their personally identifiable information was used for.

Blockchain does not keep files or data about its users. Instead, only the digital identity on blockchain will keep track of the deals that happen between identity users and businesses.

 

Blockchain Application Development CTA

 

Why Do We Need Blockchain For Identity?

Identity problems could be solved with blockchain identity management tools. Take a look at them:

 

Working of Digital Identity

 

● In Accessibility

About 1.1 billion people in the world don’t have any proof of who they are, and 45% of those people are in the poorest 20% of the world’s population. Identification papers that are hard to understand, expensive, hard to get, and people who don’t know much about personal identity.

These are the main problems that keep more than a billion people from using standard identification methods. People who don’t have physical names can’t go to school, apply for work, get a visa, or use many government services.

To get into the current banking system, you need to have a name. On the other hand, 60% of the 2.7 billion people who don’t have bank accounts already have cell phones. This means that implementation of blockchain in fintech industry can be used to better meet the needs of vulnerable citizens.

 

● Data Insecurity

At the moment, our most important digital identity on blockchain data is kept in centralized government systems that are backed by old software that has many single points of failure.

Hackers are very interested in large, centralized systems that hold the personally identifiable information of millions of user accounts. A new study shows that 97% of all data breaches in 2018 involved personally identifiable information. This makes it the type of data that is most likely to be stolen.

Even though there were laws and attempts by businesses to make cybersecurity better, 2.8 billion user data records were stolen in 2018, which cost an estimated $654 billion.

 

● Fraudulent Identities

In addition, the user’s experience with their digital identity on blockchain is very broken up. Users switch between the different identities that go with their usernames on different websites. It’s not possible to use data made by one platform in a normal way on another platform.

It’s also pretty easy to make fake identities because the connection between digital and real identities isn’t very strong. Forged interactions are easy to happen when people have fake IDs. It can be used to commit theft, cause numbers to be boosted, and cost money to be lost.

This weakness in society makes it easier for bad things to happen, like spreading “fake news,” which could be a threat to democracy.

 

Steps To Develop An Identification App Using Blockchain

If you are planning to build an identification app using blockchain, then you should hire a blockchain developer. They will help you create a robust app with the latest technology. But let’s first look at the crucial mobile app development process.

 

Develop An Identification App Using Blockchain

 

1. Validate Your Idea

First of all, you should validate your blockchain identification app with the help of a blockchain app development service provider. It is advisable to create a blockchain identity verification app using Ethereum.

Also, you need to define the project scope before starting the identification app development. On the other hand, you might also want to use blockchain to make your business more open. To do the same thing, it’s important to check to see if blockchain app creation is needed.

 

2. Hire a Development Team

Once your idea is validated, it is time to hire a development team who can create a digital identity app on blockchain. When you hire the mobile app development company, they must be proficient in—web designing, frontend and backend, testing and deployment of the app. Once your development team is hired, the next step is designing and development of the app.

 

3. Design And Develop the Front-end

The designers and developers work on the front end at this stage. The front end of your app is where users interact with it. The token development services provider you chose makes designs that look good and are easy to use. It makes it easy for people to connect with the blockchain for digital identity. To build the user experience, you can also use a good web framework.

 

4. Obtain An Ethereum Account

Ethereum is a well-known blockchain tool for making independent apps. Use a wallet like MetaMask or MyEtherWallet to make an Ethereum account. You will use this account to talk to your smart contracts experts.

 

blockchain app cta

 

5. Plan For Scaling Your DApp

You should think about flexibility as your app grows. You need to make sure that your system and smart contracts can handle more users without slowing down. To improve scale, look into methods such as sharding or state routes.

 

6. Get the Required Tools for Development

To make an Ethereum DApp, you need the following tools:

 

  • Testrpc

testrpc is a “Command Line Interface” blockchain software that is easy to use. To install and set it up, use their GitHub instructions.

 

  • Web3.js

Web3.js is a popular Ethereum JavaScript API that lets you talk to the Ethereum network. You need to follow this guide to set it up.

 

  • Truffle

It is a simple tool for building, testing, and launching Ethereum smart contracts. It lets you set up different folders for each project. Read through their installation guide for digital identity blockchain.

 

7. Study ERC-20 Crypto-Token Standard

If you need to create an ERC721 token for your app, understand about the ERC standard. This standard tells you how to make tokens on the blockchain for digital identity and what they can do.

 

8. Develop Ethereum Smart Contracts

The terms of a smart contract are put straight into code, so the contract will carry out itself. To set up the rules and logic for your digital identity on blockchain apps, use Solidity to create a smart contract on Blockchain Ethereum. These contracts will take care of blockchain verified tokens, issuing them, and other important tasks.

 

9. Test Your Smart Contracts

Test your smart contracts thoroughly in a controlled setting to find and fix any bugs or security holes. To make sure the contracts work as planned, use testing frameworks and tools to run through different possible situations.

 

10. Create a Crypto Token For Identification App

If your app needs a crypto token, use your smart contracts to make one. Set the quantity, name, symbol, and other characteristics of the coin. But it is also vital to be well-versed in the cost to create ERC20 tokens. It helps you in fixing your budget.

 

11. Buy Ether and Deploy the Smart Contracts

Ether is what you’ll need to get your smart contracts running on the Ethereum mainnet. You can buy Ether with your Ethereum account and then send the contracts to the network. Users will be able to access your smart contracts once they are set up.

 

Impact of Blockchain for Identity Verification

Identity verification blockchain is changing because blockchain technology is making it safer and faster than the old ways of doing it. Now let’s look at how blockchain has changed digital identity blockchain in a very important way as per the blockchain app development company.

 

Impact of Blockchain for Identity Verification

 

1. Enhanced Security

Because blockchain is autonomous and uses crypto identity verification methods, it is very safe from data breaches and identity theft. The distributed ledger protects private personal information by making sure that data can’t be changed or tampered with.

 

2. Increased Efficiency

The old ways of blockchain verified identity can take a long time and make mistakes. Blockchain speeds up the process by automatically checking data and cutting out the need for middlemen. This makes identifying checks go faster and more accurately.

 

3. Improved Privacy

Better privacy blockchain can make privacy better by reducing the sharing of private information. Users can control their own personal data and only let allowed parties see it. This makes it less likely that data will be misused or collected without permission.

 

4. Cost Reduction

Businesses can cut down on the costs of verifying identities with blockchain. Organizations can cut down on business costs by getting rid of the need for middlemen and improving processes.

 

5. Greater Trust

Blockchain can help people and businesses trust each other more. It can boost trust and trustworthiness by making records of personal information clear and easy to check.

 

Examples of Digital Identification on Blockchain

Digital identity on blockchain can be used in many different fields, as shown below.

 

1. Secure Identity Verification

Digital identity systems that use blockchain can quickly and safely check a person’s name and credentials for a number of reasons. For instance, starting a bank account or using government services.

Identity verification blockchain names makes things safer. It gets rid of the need for centralized third-party identification services and stops theft and identity scams.

 

2. Healthcare Records

Patients can make and control their own digital identities, and doctors and nurses can safely check patient records and medical backgrounds. The integration of blockchain in healthcare could lead to better care while also protecting data privacy and security.

 

3. Supply Chain Management

Digital identities that are built on blockchain can be used to keep track of and control information about the supply chain. It gives people more comfort and openness.

Supply chain managers can keep track of how things move through the chain by giving each one a digital identity on blockchain. In this way, you can be sure that the product is real and stop scam and forgery.

 

Blockchain app development cta

 

Advantages of Using Digital Identity on Blockchain

Before you invest in blockchain digital identification app development, it is vital to know what benefits it offers to users and forms. So, here are the essential advantages of using blockchain in a digital identification system for both users and organizations.

 

1. For Users

Users can benefit from digital identity with Blockchain technology integration in many ways. Let’s have a look at the benefits:

 

For User

 

  • Secure Global ID

Each decentralized identity on the blockchain is linked to personally identifiable information that is encrypted and kept safely, usually on a user’s cell phone. You can share the independent blockchain digital identity with anyone else to prove who you are through the blockchain.

 

  • Complete Data Ownership and Control

People who use websites and apps are in charge of and own their blockchain digital identity. No one can take away someone else’s autonomous identifier or get to their info without their permission.

  • Decentralized Data Storage

Not like centralized storage systems, personal data and Verifiable Credentials are kept on each person’s own device, not even on the blockchain. Bad people will have a harder time getting a lot of personal information at once.

A hacker could get into 20 million accounts at once with unified storage systems. Because of this, the thief would have to get into 20 million machines to get into the storage system.

  • Universally Accessible System

There is a digital identity on blockchain network that anyone in the world can join as long as they have a mobile. A token development company recommends that users can use these tokens to represent a database or during transactions such as blockchain for authentication.

  • Easier And Faster Blockchain Identity Verification

When a person’s decentralized identifier is kept on the blockchain, it can be used for many things, such as meeting the KYC standards of banking institutions. A person’s driver’s license, visa, or any other valid form of identification can be linked to their decentralized identity.

 

2. For Organizations

Once you know the benefits of identity management with blockchain technology, let’s now see how it can benefit the organization.

 

For Organizations

 

  • Reduces Identity Fraud

Bitcoin’s immutability and openness make it hard for scammers to change names or make fake ones. It is crucial to hire blockchain developers who can add blockchain for digital identity that makes it impossible to change the data saved on a blockchain.

If there are any improvements or changes, they can be tracked and checked. With this, the chances of identity theft, paper fraud, and other types of fraud that come with old identity management on blockchain systems are lower.

 

  • Enhanced Trust and Auditability

Blockchain technology makes the system open and easy to check, which is the main benefit of using it for identity management on blockchain. The log that is stored on the blockchain keeps track of all name transactions and changes.

This makes an unchangeable audit trail that builds trust between users and all other service providers. They can also check that identity data is real and correct.

 

  • Simplified KYC Processes

KYC and Anti-Money Laundering procedures are very important in many fields because they make sure that rules are followed and bad things don’t happen.

By sharing confirmed identity information safely between many groups, blockchain-based identity management with blockchain can make these processes easier and faster. This cuts down on unnecessary work, speeds up the hiring process, and makes sure that regulations are followed better.

 

Blockchain for Digital Identit

 

Cost To Develop An Identification App Using Blockchain

Now if you have decided to build an identity on the blockchain app, here comes the main concern. “How much does it cost to develop a blockchain identification app?”

Well, we can’t say the actual blockchain app development cost. But we can provide the basic estimation. The cost to build an app for crypto identity verification lies between $10000-$25000. It can go beyond depending on your project requirement. Let’s get a more clear picture with the below table:

 

App Complexity

Cost Estimation

Simple Blockchain Identity App $10000-$15000
Medium Blockchain Identity App $15000-$20000
Complex Blockchain Identity App $25000+

 

Now you are well-versed with the cost to develop an app for digital identity on blockchain. It is time to consult with a blockchain development services provider about your project idea and get a detailed cost breakdown.

Future of Blockchain Identity Management!

Researchers have found that the blockchain identity market will be worth $17.81 billion by 2030, growing at a rate of 56.60% per year from 2024 to 2030. The growth of the market is expected to be helped by more government programs in both developed and developing countries that aim to create blockchain for authentication technology.

North America has the biggest part of the blockchain identity management market right now. This is mostly because of the continent’s advanced infrastructure and technology. More and more businesses are looking for ways to make their info safer.

The need to digitize more and more in many fields, such as manufacturing, healthcare, and shopping, is one of the few things that is driving this growth. Identity management with blockchain options is a good way to deal with the growing problem of data leaks and cyberattacks.

 

Frequently Asked Questions

 

1. How To Verify My Id on Blockchain?

You can verify your Id on blockchain in the following ways:

  • Begin Verification While Placing Your First Order.
  • Enter Personal Details.
  • Upload Identification Document.
  • Submit Application.
  • Verification Complete.

2. What Are the Benefits of Blockchain Identity Management?

You can get the following benefits from using blockchain identity management solution:

  • Relief from Paper-based Identity Management
  • Easier ID Verification
  • IoT System User Identity Management
  • Self Sovereign Identity
  • Non-custodial Login Solutions
  • Decentralized Web Identity System

3. What Are the Top Use Cases of Digital Identity in Blockchain?

Here are some of the use cases of digital identification in blockchain:

  • Applying for a loan
  • Immigration
  • Legal Procedures
  • E-commerce Checkout
  • Previous Employment verification

4. How Much Does It Cost to Hire Blockchain Developers?

The cost to hire blockchain developers depends on many factors like skill and location. However, the cost to hire blockchain developers will be between $15-$25 per hour.

5. How Does A Blockchain Digital Identity App Work?

  • Building Data:On the blockchain, you make a unique digital name.
  • Data Storage:Your personal information is kept safe on a network of computers that are spread out.
  • Data Verification: If the app needs to make sure you are who you say you are, it uses the blockchain to make sure.
  • Sharing Data: You can choose which people you trust to see information about your name. This protects your privacy and gives you power.

6. What Are the Issues in Current Digital Identity?

  • Centralized identity management with blockchain system
  • Expensive and time-consuming KYC
  • Lack of data ownership and control