Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Ten banks have joined to build a self-managed digital identity system using blockchain technology thereby giving users higher control over their data.
On Thursday, November 5, Spanish banking giant Banco Santander along with top-ten leading banks unveiled a self-managed digital identity (ID) model based on blockchain technology. The project dubbed Dalion successfully completed the concept test and proceeded for the second round of development.
Also, as per the current estimates, the project is likely to go live by May 2021. The blockchain-based identity system will give users better control over their personal data. It compiles all the user information in a single digital identity, stored on the mobile devices, and backed by the associated companies.
Blockchain-based Digital ID Technology
The creation of a self-managed identity also brings confidence among users. Besides, the use of blockchain assures reliability and transparency. The official press release notes:
“Users may decide who to share the data with at any time in a fast, simple, secure process, in order to take up any service with no need to fill in tedious forms. For example, they may use their data validated by other organisations to hire a car, take out insurance, arrange a loan, take up an electricity service, or any service they wish, in just a few clicks.”
The Dalion project is based on the Alastria digital identity model that uses Ethereum and Quorum blockchain infrastructure for handling the transfer of user IDs between all the associated organizations. Thus, the participating companies can deliver results with greater efficiency while improving different processes.
Designing New Business Models
All the participating companies in the Dalion project can help to design new business models. These models can further improve user experience based on the self-managed digital identity. Currently, the demos of the Dalion project has at least one of the Alastria consortium’s blockchain infrastructures (Ethereum-Quorum). The press release notes:
“The project undertaken by these companies is a technological challenge that will bring Spain to the fore in terms of blockchain and identity management, a basic issue in digital environments for both users and businesses. The solution will also help fight attempted fraud and identity theft with greater efficiency”.
All the ten companies associated with the Dalion project guarantee the integrity and quality of data. They aim to protect user privacy as no personal data storage happens in a centralized manner. The project aims to improve Single Sign-on (SSO) solutions as offered by tech giants like Google and Facebook.