Not only politicians and bureaucrats all over the world recognize the power of blockchain technology; corporations too are riding this trend.
Corporations arrived at such a realization after accepting the fact that traditional identity verification is flawed. In the age of AI-generated deepfakes, identity theft and fraud are easier than before.
Crypto.news reports:
According to the U.S. Federal Trade Commission, there were more than 1.1 million reports of identity theft in 2024, with fraud amounting to $12.5 billion. With the advent of AI-led deepfakes, identity verification has become even more challenging.
This is where blockchain can provide protection and security. The permissionless and tamper-proof character of this digital ledger made the verification system secure in real-time with the protection of cryptography.
We are all familiar with the KYC process utilized by traditional online companies. We are asked to upload our IDs and provide a selfie. Doing it once is tolerable. However, when these companies asked us over and over again, this made us wonder if the system is really secure.
Blockchain technology prevents such unnecessary friction between users and companies, and that is why the latter are now adopting blockchains for identity verification. No intermediaries are needed, and blockchains make identity verification more user-friendly. What I love the most is the idea of sovereignty and ownership over our data. This will be realized if the blockchain verification system utilizes a decentralized protocol like what we are doing here on Hive.
Grace and peace!
References: