Electronic identification, from here onwards referred to as eID, allows you to access for instance your virtual identity online and from everywhere. Taking Estonia as an example, where an e-resident card can be request without the requirement of being an Estonian citizen. The EU regulation eIDAS sets the legal foundations that make this possible; the law was passed in 2014.
As already greatly discussed on the Internet; a blockchain can be seemingly linked to every process, and simplify it. You would start with storing your eID on your own private shared ledger, storing information such as name, date of birth, gender. Additionally, there is the opportunity to upload official documents such as diplomas, driving license, marriage certificate. Up to here the data is simply on a shared ledger and not the blockchain. (Skinner 2016) A scenario for an individual could be to open a bank account with a new bank. Imagine giving access to your eID over a mobile application, by selecting the specific information required to this institution (e.g. maybe they do not need your driving license but instead a statement of enrolment). The bank can see that you were a previous client of one of their competitors and hence you can be trusted, saving the trouble of going through lengthly Know-Your-Customer (KYC) procedures. By giving your new bank access to this information, your encrypted identity becomes part of the blockchain. (Skinner 2016)
There are several benefits of this technology. However, I would like to further elaborate on three specific one’s. If we were to place our eID on the blockchain the resulting benefits are: (1) transaction costs are low, (2) the eID is placed on the blockchain is immutable, and (3) it is convenient to access your eID independent of physical location over a mobile application. (World Economic Forum 2016)
Sources:
World Economic Forum (2016) ‘A Blueprint for Digital Identity’. Accessed 20 September 2017 (Online). Available on: http://www3.weforum.org/docs/WEF_A_Blueprint_for_Digital_Identity.pdf
Skinner, C. (2016) ‘Applying Blockchain to Identiy’, The Finanser. Accessed 20 September 2017 (Online). Available on: https://thefinanser.com/2016/08/applying-blockchain-identity.html/
