These days, data is considered valuable currency, especially personal and behavior-based data. It does not necessarily need to be personal identification data but simply information about what you like to buy, order, or watch. These data points become your digital identity.
Companies and brands are learning to tap into the surge of consumer data that has become available. Brands use these insights and knowledge to create tailored experiences and content for end-consumers who have come to expect personalized relationships with the brands they consume.
Especially when it comes to personal data or behavior-based data, companies now understand that with the right information, they are able to understand your digital identity — not just who you are, but what you search, watch, and eventually, buy.
Why give your data away?
A McKinsey report says that the growth of the value attributed to digital identities will be 22% year on year as we progress into the Fourth Industrial revolution.
If you are somewhat more guarded, technologically savvy, and more concerned about actual identity data like your gender, age, name, passwords, medical history, or banking details, then you will be pickier when choosing who should get permission to view this data.
Consumers themselves are also becoming more aware of the value of their data and, along with that, the implications they carry, such as their vulnerability to misuse and fraud through identity theft or unauthorized access. More technologically savvy consumers may be more guarded about who they choose to share their identity data like gender, age, name, passwords, medical history, and banking details. As a result, they will seek to share their data only with companies they believe to be secure and responsible when it comes to protecting their data.
How does blockchain work in terms of personal privacy?
Blockchain can make the internet more secure. The blockchain is a secure ledger upon which companies are continuing to build and improve solutions that make fraud increasingly difficult. Blockchain allows users (be it an individual or an organization acting on behalf of individuals ) to create a decentralized digital identity that does not connect to any other data points. By using pseudonymous blockchain IDs, people can use applications without sharing their entire digital profile.
Choosing organizations that employ strong security protocols is becoming more important because as technology advances, not only do those who are creating the technology advance but so do the hackers! And if data is a currency, then it is worth stealing.
A 2019 study shows that 97% of all breaches in 2018 were of personally identifiable information.
As a company looking to find a competitive edge, security and data protection are becoming more and more important to protect not only their clients but their own data and reputation customers and employers of the future will want to reassure the people within their fold that they can do this. Blockchain technology is increasingly viewed as a viable solution thanks to its sophisticated encryption methods and distributed infrastructure that addresses the shortcomings of traditional centralized data storage.
Blockchain adoption no longer needs to sacrifice user experience
One worry for companies considering a blockchain solution has been the perceived technological barrier that they expect will make life more difficult for users. Unlike traditional access that requires username and password, most blockchain-based systems require access with private keys or other unfamiliar methods of authentication like seed phrases or multi-signatures.
But migrating to blockchain has become easier to do for businesses, with companies like AIKON who provide services that allow companies to integrate a blockchain solution that doesn’t jeopardize the client’s user experience — while giving them peace of mind when it comes to data security.
By utilizing social logins for blockchain identity verification, individual users, clients and companies alike can have a seamless experience of creating blockchain identity with a single click and still ensure user autonomy over their identities. This familiar and user-friendly approach ensures that users aren’t adversely affected by blockchain migration. At the same time, those who later become more blockchain-savvy can claim control of their owner keys at any time — optional empowerment that modern consumers appreciate!
The integration is seamless, and the end-user need not even be aware they are using blockchain tech, just as email and internet users don’t need to understand the underlying tech. It’s not necessary to undergo technical and educational onboarding because what matters is the product, level of service, and security.
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