Companies of all sizes have shown increasing interest in blockchain, the latest in a long line of technological novelties, as a solution for a broad range of business issues.
With the advent and subsequent media coverage of topics like Bitcoin billionaires and Initial Coin Offerings (ICOs), the public has inadvertently fixated on blockchain’s successful crypto-currency applications, leading many to consider it a panacea for all industries and organisations.
The truth is that blockchain is far more likely to have a positive impact on specific industries and frameworks when it’s applied strategically, not haphazardly. Blockchain has potential to support identity management and verification processes, but it’s not an ideal option for every application within the identity ecosystem.
This makes blockchain a great fit for some applications, and less practical for others, if at all.
Blockchain provides a very fundamental accounting service in that it reconciles and keeps a record of transactions. Its ability to bypass third parties and simplify financial transactions has proven itself worthy in the financial world, with capability to modernise other industries, but that doesn’t mean blockchain will revolutionise everything.
Blockchain certainly has potential to carve out a niche in identity management, but in its current state, its applications are likely to be more effective for those who are willing to operationalise both centralised and decentralised constructs to meet their unique needs.
General comprehension of blockchain functionality varies widely, even among those with technical backgrounds, which leads to continued confusion surrounding this highly nuanced subject.
A common misconception is that blockchain offers anonymity, when in reality, it provides pseudonymity, a security measure that identifies an individual but does not disclose their legal name.
Source: Cyber Security Intelligence
