Renowned tech industry giant Microsoft has recently unveiled its plan to harness blockchain technology to create decentralized digital identities (DID) management platform. Apparently, the platform would allow the users to have more control over their digital identity and personal online data via an encrypted data hub.
As per reliable sources, it has been over a year now that Microsoft has been exploring the use of blockchain technology to create new types of digital identities for enhancing security, privacy, and control. In fact, according to reports, Microsoft is bringing blockchain platforms, by working with partners and customers, that can be used by any company – including retailers, global banks, ledger startups, and health providers – to improve their shared business processes.
Earlier this year, Microsoft reportedly merged with the ID2020 alliance – a worldwide private-public partnership that is poised to create an open-source digital ID system based on blockchain technology. The collaboration aims to develop digital identities for the U.S. users and also for nations lacking any legal documentation owing to their economic and social status.
For the uninitiated, blockchain is a modern-age technology that can be described as a digital, decentralized, and distributed ledger responsible for recording all transactions tethered to a cryptocurrency. Owing to its decentralized nature, blockchain ensures quicker transactions, potential to lower costs, and a secure network protected through cryptography. Apparently, all these characteristics make sure that no single entity can access & singlehandedly control a cryptocurrency or a network.
According to sources, in the support of ID2020 Alliance, Microsoft had joined forces with Avanade and Accenture, last year, on a blockchain identity prototype on Microsoft Azure. It was further reported that the company donated USD 1 million and has read out its commitment in terms of delivering expertise & resources to develop a secured and portable digital identity platform for governmental agencies.