Three members of a hacking ring were arrested in Europe for targeting hundreds of businesses in the US, such as Chipotle, Chili’s, and Arby’s, and stealing more than 15 million credit and debit card numbers.
American department store chain, Macy’s, sent out a warning to its customers when the retailer discovered that a third party was using valid usernames and passwords to gain access to customers’ accounts.
These are just a few examples of how cyber threats and identity thefts are becoming more commonplace than we are willing to admit. According to Javelin Strategy & Research, the number of identity theft victims in the US rose to 16.7 million in 2017; and that one in five people lost money to online imposter scams. Identity theft-related credit card fraud has gone up by 23%.
This is a clear indication that the method of employing usernames and passwords to protect our online identity is turning ineffective as well as obsolete.
Since everyone is now online, whether shopping for personal items, interacting socially or conducting business, we have to safeguard our digital footprints from prowlers. This is where Blockchain steps in – it secures digital identities and blocks out cyber criminals and third parties. With its popular distributed ledger system, blockchain has lot more potential than just handling cryptocurrency.
Identity Management with Blockchain
The way the current online identity management system is handled is unsustainable. It leaves the entire databank of personal and financial information open for anyone and everyone to see and use. Whenever you conduct an online transaction, you are expected to give out a long list of personal information that is intended to be used for your safety. However, all the disclosed information becomes available to third parties without your consent. In worst cases, this information reaches the hands of cyber thieves, putting you at grave risk.
Related: Top 5 possibilities of Blockchain in banking for 2018
Blockchain has the potential to put an end to this unsolicited data circulation
It gives power into the hands of the data owner, letting them decide who gets to see and use their data. The technology has the capability to manage the multiple layers of authentication and paperwork associated with businesses and industries. In addition, blockchain’s ability to provide encrypted digital identities is set to replace the outdated username-password method, thereby offering more comprehensive security.
And there’s more – blockchain can cut down the time and resources spent on managing multiple security identities by unifying an individual’s identity that can be fully managed by the individual him/herself. This single identity is independent of a centralized authority; and data moves out only via commissioned blockchain, ensuring that third parties and unsolicited cyber thieves don’t get any access without consent.
Blockchain Single Sign-on – What’s in it for Businesses
It is this individual identity that we call ‘single sign-on’. This single identity can be used across an individual’s entire digital life, eliminating the need to manage different accounts with different usernames and passwords. Blockchain has the potential to make single sign-on (SSO) the next big security leap.
With the assistance of a skilled technology partner, businesses can take their first step toward blockchain single sign-on that will provide secure and easy access to multiple platforms and apps with just one click. It eliminates the risk of forgotten passwords and password phishing, which makes businesses vulnerable to attackers. Single sign-on is also a blessing in terms of the time and effort it saves for organizations.
Any organization that has digital transformation on the cards needs blockchain SSO as its backbone to ensure there is a seamless layer of security as the company grows. It is crucial, during the winds of change in business, to know who has access to company data, while establishing a unified digital presence.
Related: How Blockchain is contributing to Manufacturing 4.0
Are there any challenges?
Just like with any other new phenomenon, blockchain SSO may have its challenges. Growth is never constant, and the important thing is that the SSO system be ready to scale when growth happens. A trusted technology partner must ensure that the platform can expand and scale to your organization’s needs. Seamless access and authentication must be available to both authorized internal and external users of your organization.
In quick conclusion
Here’s something to appease the skeptics – it’s true that there is still time for blockchain identity management to become completely foolproof. But one cannot take away its immense possibilities, the surface of which we have only about scratched in this blog. But let’s not forget – what is on the database today, will be on blockchain tomorrow.
