IBM Common Stock (NYSE:IBM) and Sovrin Foundation announced recently that they are collaborating to develop a blockchain-based digital identity network across the globe. The distributed ledger technology intends to bring a solution to address the existing problems of the centralized identity system that cost both individuals and enterprises billions of money each year.
Previous studies indicate that banks spend about $1 billion annually in controlling the identity management solutions in order to keep their data safe. Furthermore, most business companies spend over $70 to constantly reset the passwords on their system to curb the intruders from hacking their systems.
IBM will now join Sovrin Foundation, a private and non-profit making organization to create a digital decentralized identity network system that uses the Blockchain Technology to provide the most secure, private and reliable transactions across the world. Statistics also reveal that about 1,300 identity breaches were reported in the US leading to corrupted of over 175 million identity records.
Another study conducted by Preempt has also disclosed that most company employees use passwords that can be hacked very easily. Hackers are increasingly devising new mechanisms to access the most critical information of the giant companies and it seems no one is immune to such occurrences. For instance, recently, Facebook has been blamed for exposing the personal data of its users to a third party Cambridge Analytica, a political data mining company based in Europe.
The new system will be governed by the self-sovereign digital identity principles that will ensure any individual information will not be shared without a precise consent of the owner during the transaction. Hence the owner of the data must choose who should have a direct access to their information at any point before it’s shared.
Additionally, the system adopts the digitally-signed credentials to offer the most decentralized identification and discovery of key public signatures to be used digitally. By building a global digital identity network, IBM and Sovrin will be making the digital world to be more authentic and transparent just like the real physical world.