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Rise In Safety Concerns About Conventional Identity Management Models?

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  • Tip Bones

Why has the rise in safety issues regarding conventional identity management models, essentially driving the blockchain identity management market? To answer this, let us further reiterate blockchains, and then elaborate on the safety concerns:

Blockchain technology refers to a peer-to-peer distributed, irreversible record of information. Every block of information contains a thorough and accurate record of all transactions that cannot be changed once verified and secured cryptographically. 

Blockchain is used to produce a platform that protects the identities of individuals from theft. It significantly decreases the number of fraudulent activities. The technology accommodates organizations to procure powerful blockchains that can manage matters of reconciliation and authentication, confronted in many industries. Moreover, it enables individuals to acquire encrypted digital identities that can replace various usernames and passwords while implementing extensive security features, capable of saving resources, and time of customers and institutions. Individuals can simply produce a self-sovereign identity on the blockchain. 

An individual identity entirely controlled and retained personally by the individual is a self-sovereign identity. It is difficult to steal such an identity from an individual. This fixes the problem of identity stealing, which is frequent in the conventional identity management system. 

The practice of using permissioned blockchains could also offer a decentralized way of registration. An individual would acquire an identity that is not reliant on any centralized authority, and therefore cannot be controlled or interfered by any third party without the individual's consent.

A rise in safety concerns about conventional identity management models is significantly driving the blockchain identity management market. An increase in demand for self-sovereign identification among enterprises is also fueling the market growth. 

The implementation of blockchain technology is simplifying business functions, through remarkable immutability, and transaction speed.

An Equifax data breach revealed data of millions of users. The breach occurred due to a software flaw, which enabled hackers to take control of the company's website. 

Blockchain identity management solutions would help avoid losses incurred due to inapt identity management.

Lack of technical awareness and required skillsets, among enterprises regarding the implementation of the blockchain technology for, is anticipated to impede the market during the forecast period.

Furthermore, the lack of certain regulatory standards is limiting market growth. However, wide usage of blockchain identity solutions in cybersecurity, banking, and IoT is anticipated to offer lucrative opportunities to the blockchain identity management market.