The blockchain world is growing continually amid the global economic uncertainties arising from the COVID-19 aftermath. In that context, HashCash Consultants blockchain firm now plans to develop a federated and sovereign digital identity architecture. The new system will be used in banking processes.
HashCash claims that the banks are “chief arbiters” of people’s identities. Thus, they need blockchain technology to do their work better. Based on an Aug. 11 announcement:
“accurate identification of an individual is central to banking activities which makes them the chief arbiter of people’s identities.”
Nonetheless, the current system is not without its different issues:
“The existing manual processes make identification time-consuming and susceptible to errors. HashCash aims to streamline the process by helping the partner bank create digital identities for the customers over a decentralized network, where the customer data will be recorded on an immutable ledger, eliminating any chance of identity theft and forgery.”
A United Arab Emirates bank is expected to use the blockchain-based digital identity system created by HashCash, according to the announcement. A representative told reporters that he could not reveal what bank is referred to due to the legalities involved in the clauses.
HashCash is in the process of creating a federated and sovereign digital identity architecture. That system would allegedly simplify identity verification and also streamline customer onboarding. It will also simplify loan application and processing, and most of the ‘know your client’ checks for account opening. Raj Chowdhury, HashCash’s CEO, said:
“Accurate identification of an individual is central to banking activities which makes them the chief arbiter of people’s identities. Having a bank account is essential for buying property, securing a loan, and getting a job. But, the existing manual processes make identification time-consuming and susceptible to errors.”
The CEO alleges that HashCash’s digital identity system enables banks to create digital identities for customers on a decentralized network. In turn, it prevents theft and forgery of customers’ credentials.
Decentralized identity solutions are slowly becoming an increasingly active development sector in the general crypto space. At the start of June 2021, a representative of LG’s information technology branch, LG CNS, told reporters that blockchain-based identity systems may become the new standard. He went on to even speculate that “maybe all login functions can be replaced.”
At the end of May, LG CNS also unveiled its partnership with US-based company Evernym. The partnership was meant to help in the development of blockchain identity standard for the World Wide Web Consortium.