Blockchain Digital Identity Is The Infrastructure of The Digital Economy Ara

In the internet era, paper materials have become digital information, digital information has become an important infrastructure, and governments around the world have deployed eIDs. Many countries in the EU have issued eIDs to replace traditional IDs so that eIDs can have offline identity recognition functions and also network remote identification function. Countries that have already issued eIDs include Germany, France, Spain, Italy, Russia, Belgium, Estonia, Austria, Denmark, Finland, Portugal, Slovenia, Lithuania, Malta, Luxembourg, Netherlands, Sweden, Iceland, UAE, and Hong Kong … Among them, Germany, Spain, Italy, Belgium, Estonia, and Austria have been popularized and widely used in various fields such as e-government, e-commerce, and social networking.

Digital identity is identification in the network, and its core aim is to prove “I am me” by providing and verifying identity information. Its main process includes identity owner registration, identity provider signing identity, identity relying on persons verify their identities, and manage their data, all these through cryptographic algorithms to come true. The current common identity authentication methods include passwords, smart cards, biometrics, digital signatures, and digital certificates. The current mainstream identity authentication and management system, PKI, uses digital certificates as the core.

Each digital identity from birth to mainly use includes the following four links: registration, issuance, verification and management, and three participants: identity owner (user), identity provider (issuing authority), identity relying party (yes Identity verification requirements).

According to the report of Huobi Research, blockchain digital identity has the following advantages over traditional identity authentication:

1、 Blockchain digital identity provides a credible infrastructure, can use traits such as information on the chain to be true and credible, cannot be tampered with to provide people with a low threshold of credible identity.

2、Blockchain realizes a self-sovereign identity and data management. The core idea of ​​a self-sovereign identity based on blockchain is to create a globally unique identity DID (distributed identity) with high availability, resolvability, and encryption verifiability. In terms of protecting user privacy, combined with DID, currently, there are a variety of cryptography and hardware and software solutions such as zero-knowledge proof, distributed key management, trusted execution environment, and secure multi-party computing.

3、Blockchain is the technology of realization of digital identity functions, such as distributed identity authentication and authorization platform: eID digital identity chain, which is a national digital infrastructure based on the national 863 major special citizens digital identity. Through docking with various ministries and departments of the United Nations, a personal privacy protection system and data transfer platform linking data of various dimensions of individuals are established.

Huobi Blockchain Research Institute’s prospects for the future of blockchain digital identity-the development of digital finance drives the rise of blockchain digital identity, the financial industry has a realistic demand for blockchain, and the financial field includes (cross-border) In payment, securities, supply chain finance, and other industries, due to multiple links and multi-party cooperation, the distributed ledger of the blockchain can help it achieve more efficient communication and capital transactions. The report finally pointed out that the strongest driving force for the development and use of blockchain digital identities mainly comes from the development of the digital finance industry, because finance has a significant demand for blockchain, and blockchain identities can better help KYC and regulation. In the actual implementation process, the unified identity of the blockchain will be the first field to be implemented. At the same time, the government needs to take the lead to promote the establishment and use of related systems, introduce relevant standards and policies, and promote the development of blockchain digital identity quicker.



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Huobi Research

Huobi Research


Blockchain industry top think tank, affiliated to Huobi Group.