Increasing data breaches, illegal hacking and identity theft cases are raising the demand of the fraud and authentication industry. No entity seems to be immune – from small banks to large health insurance companies; organizations of all sizes in many industries are affected. Criminal fraudsters are illegally accessing millions of consumer credit cards and private data files, even while new payment systems are evolving with new technology and capturing consumer spending habits. This is further amplified by the advent of mobility. As the industry is moving towards EMV chip technology, the CNP (card-not-present) fraud is increasing compared to the fraud at physical POS systems.
Some Financial Institutions and FinTech startups are looking at ways to leverage Blockchain in the area of identity and authentication
Blockchain can be used for:
–The storage of all types of data and transactions in a secure and open way.
-Creating an identity on the blockchain, making it easier to manage for individuals, giving them greater control over who has their personal information and how they access it.
By combining the decentralized blockchain principle with identity verification, a digital ID can be created that would act as a digital watermark which can be assigned to every online transaction. The solution can help the organizations to check the identity on every transaction in real time, hence, eliminating rate of fraud. Consumers will be able to login and verify payments without having to enter any of the traditional username and password information. Through blockchain solutions, consumers can simply use an app for authentication instead of using traditional methods, such as a username and password. The solution will store their encrypted identity, allowing them to share their data with companies and manage it on their own terms.
Listed below are the companies which are working to leverage blockchain technology in the identification and authentication segment:
1. 2WAY.IO: 2WAY.IO effectively transforms public nodes into private nodes by adding a permissions layer. Private nodes can connect information silos & secure communication channels. They’re user-in-control (privacy-by-design & security-by-design) and require no trade-off between security & UX. These systems are both trusted third-party- and blockchain-agnostic; they only require an intermediary or blockchain when both parties agree to add one to their interaction.
2. ShoCard: ShoCard is a digital identity that protects consumer privacy and is as easy to understand and use as showing one’s driver’s license. It’s optimized for mobile and so secure that even a bank can rely on it. A user’s identity is encrypted, hashed and then written to the blockchain, where it can be called up when needed. Users would, in effect, give banks temporary access to the private side of this blockchain record in order to verify identity. Once that is done, the bank creates its own record that can be consulted in the future to determine that a certain Joe Smith is really Joe Smith.
3. Guardtime: Guardtime KSI Cybersecurity Platform enables organizations to assure the integrity of their networks, prevent data loss of critical digital assets and to verify enterprise behaviors. The platform records the state of all KSI-instrumented digital assets by registering them in a global KSI blockchain, generating a mathematically verifiable baseline image of the network.
4. Trunomi: Solves KYC and unlocks new revenues and efficiencies with technology to easily create and securely manage the consent to use customers’ personal data. Trunomi securely connects financial institutions to their customers with a “customer-driven” data-sharing platform.
5. BlockVerify: Provides blockchain-based anti-counterfeit solutions. It uses blockchain technology to improve anti-counterfeit measures in different industries such as pharmaceuticals, luxury items, diamonds and electronics. The use cases being:
– Solutions to track pharmaceuticals throughout the supply chain and to ensure that the consumers receive an authentic product.
– Building a system of verifying luxury goods.
– Creating a system that can authenticate and can enhance trust in diamonds certificates and prevent fraud.
– Tracking of fraudulent transactions of any type throughout the system.
6. CredyCo: Provides document verification “software as a service” (SaaS) which uses a smart contracts and identity technology built on top of the blockchain to ensure the credibility and irrefutability of all statements.
7. HYPR: HYPR-Secure’s tokenization provides blockchain applications a viable solution for securing private keys behind a biometric authentication gateway. Whether it’s a biometric bitcoin wallet or a smart-contract platform, HYPR augments security by decentralizing the storage of private keys.
8. BlockAuth: BlockAuth enables you to own and operate your own identity registrar that allows users to submit their information for verification.
9. Bitnation: Bitnation is a governance 2.0 platform that is powered by blockchain technology. Its goal is to provide the same services that governments provide, but in a decentralized and voluntary manner, unbound by geography. Bitnation has worked out an identification solution such as blockchain passport and a marriage certificate.
10. Onename: Onename makes it easy to register and manage a blockchain ID. Users can create a personal or company profile and share their blockchain ID on their website, social media profiles and business cards so that others can easily find them online. Developers can integrate support for blockchain IDs to offer users password-less login, secure messaging and granular control over data access and privacy. With a blockchain ID, users are in control of their online identity.
11. Cryptid: Cryptid eliminates the possibility of counterfeit identification by adding factors of identification and encryption. Cryptid takes the data provided in the form and package it into a compact format readable by our systems and generate your Cryptid identification data. All of the data is encrypted with the provided password after which it is permanently transferred to the blockchain. The customer is then given a unique identification number that points to the information on the block chain and can be stored on almost anything from magnetic stripes to QR codes.
12. Case: Provides biometrically secured multisignature bitcoin transactions. Case is a multisignature, multifactor wallet that requires two of three keys for a transaction to take place. Each key is generated and stored in a different location and is protected by a different authentication factor so that there’s no single point of failure.