Virtual ID Validation Using Blockchain Technology

By Sandeep Kasalkar

Decentralized Identity:

A system that enables people to directly control their identities is necessary for the idea of a decentralised identity. An “identity wallet” is a decentralised identification that verifies a person’s identity information for a range of different websites and applications using dependable software that is trusted to generate validation of your identity.

The authentication can be provided to a third party for approval without ever leaving the hands of the person whose identity is being confirmed, much like an ID card kept in a wallet in real life. You may prevent having copies of your identifying information saved in many locations with various providers by controlling your identification through a single source—the digital identity wallet.

It has never been more crucial for people to take ownership of their digital identities as businesses and individuals move towards secure cloud-based computing. Several hazards are still there even if cloud-based data management depends on authentication techniques that are preferable to easily guessable passwords or PINs.

What is the connection to decentralised IDs here?

Blockchain enables full management of an identity wallet by the identity owner while yet allowing the issuer or verifier to approve a transaction using their private key. Service providers who accept this kind of identification would need to use the blockchain to access the distributed ledger and search for the decentralised identifier (or DID) to verify the person.

The DID is validated using the appropriate cryptographic keys, which are created at the identity owner’s request and consist of a public and a private key. By supplementing the digital identity data in a manner akin to granting a certificate, service providers may confirm the identity owner. Issuers act as an impartial third party that may validate an identity owner’s credentials without knowing any personal information about the person by utilising their own private keys.

The six steps to utilising blockchain for authentication

1. Information about a user, such as their name, social security number, phone number, mailing address, credit card numbers, etc., is only available through their identity wallet.

2. The decentralised identification framework stores this information on a public distributed ledger powered by blockchain technology and enables the linking of the public key to the private key connected to the identity wallet.

3. The identity wallet recognises a special DID provided to the user as the blockchain framework creates a public key to the distributed ledger.

4. The identity owner uses this DID to identify themselves to a service provider for distributed ledger authentication.

5. The identity owner authorises the transaction by supplying his private key to finish the operation when the service provider finds the shared DID.

6. After verifying authentication success, the service provider allows the user to complete the transaction on the app or website.

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