In the previous lesson, we introduced the application of blockchain in finance and banking. In this next lesson, we will discuss the application of blockchain technology in digital identity and security management.
Digital Identity
A digital identity is often referred to as "a representation of an individual or organization in the digital world" and includes, but is not limited to, personal information such as nicknames, names, addresses, dates of birth, email addresses, and biometric data such as fingerprints and faces. As life becomes increasingly Internet-based, the importance of digital identity is growing. Whether it is using banking for money transfer transactions also and loans, or accessing health care systems, etc., the question is involved: Are our digital identities being managed and stored securely and correctly?
When data is stored and managed centrally by a centralized entity, there is a risk that its systems will be hacked, leading to the risk that private information of citizens and companies may be lost and end up in the hands of malicious actors. Every year there are times when centralized entities suffer attacks that result in the theft of this information, and one of them was in 2017 when one of the world's largest credit reporting agencies, Equifax, had a serious information security incident that resulted in the compromise of the private information of 147 million residents of the United States. The agency ended up paying $650 million in fees to settle with regulators, but the information that had been leaked could not be made good at will. Therefore, it is very important to approach data security and take the necessary measures to protect this sensitive information.
By applying blockchain technology to the field of digital identity, it is possible to speak of storing this digital identity information in a network of many computers, rather than within a unified central server. Combined with the technology of cryptography and encryption algorithms in blockchain, this data is encrypted, making it difficult to decrypt these data even if they are leaked, and used for the tamper-evident nature of blockchain. These data are not easily modified by malice.
In addition, the use of blockchain to create digital identities allows the blockchain network to combine multiple factors to verify the identity of users, such as public keys, biometric data and other information stored on the blockchain, without the need for a centralized institution to verify the identity of individuals or organizations.
Healthcare Information Storage
Healthcare generally refers to the maintenance and improvement of physical and mental health through the treatment of disease and injury, and involves products and services ranging from rehabilitation, diagnostic testing, therapy and chronic disease management.
Healthcare services often involve a variety of private patient information. This data is also usually stored on centralized servers and is a key target for cyber attacks. For example, in 2018, the Singapore Ministry of Health's healthcare system repository was attacked by hackers, and the data of 1.5 million patients was illegally accessed, including their names, ID numbers, addresses, and other important information.
However, by using asymmetric encryption to encrypt this information, even if the attack was stolen, the attacker could not easily decrypt the content of the relevant information. At the same time, the blockchain network stores data in a decentralized and encrypted way, so if a force majeure situation occurs that causes damage to the server, the data can be recovered through other network nodes. Patients can access their health records through a dedicated decryption method, and health care providers can access the records needed to provide health care services through certain permissions. In this way, patients have greater control over their personal health information.
Disclaimer
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Crypto investment involves significant risks. Please proceed with caution. The course shall not be considered investment or financial advice.
Next: Lesson 6 - Applications of Blockchain Technology: Logistics and Supply Chain