Ch 5: Identity use cases and privacy implications

As interest and investment in blockchain and distributed ledger technology (DLT) continues to grow, many businesses and governments are considering how this technology can be used for identity management and identity authentication purposes.

In this chapter we explore some of the challenges relating to identity that businesses and individuals face, especially as the number of digital interactions that require individuals (as well as businesses and, increasingly, connected devices) to verify their identities increases. We look at some of the ways in which DLT may help to deal with these challenges or otherwise assist in driving efficiencies in existing processes for businesses, focusing mainly on the use of DLT in the context of individuals’ identities. 

We also examine the regulatory and privacy-related issues that must be considered, not only when DLT is being used for purposes specifically connected to identity management and identity verification, but also across some of the other use cases that are being put forward for the technology. We identify some of the conflicts that arise between what is currently required under regulation and some of the inherent features of DLT, and consider how these might be addressed. 

Read the chapter on the FinTech hub