A blockchain-based identity consortium

by Daniel Monteiro via StockSnap
by Daniel Monteiro via StockSnap

The search for the holy grail of blockchain technology – robust, global and easy-to-use identity solutions – seems to be picking up.

When you think about it, all blockchain applications rely on identity. Your bitcoin wallet, trade finance operation, connected device and energy transaction – they all count on data originating somewhere. The degrees of available information about the identity may change according to the application – but everything needs to have a reliably-identified origin and a destination, even if it’s just aseries of characters.

So it’s understandable that activity in this space is heating up.

At Consensus 2017, Microsoft, Accenture and several startups announced the creation of the Decentralized Identity Foundation.

What’s staggering about this is the public acknowledgement by all involved – competitors as well as tech incumbents – that identity has to be a collaborative effort. From realizing that “data is the new gold” to being willing to share that gold (in this case, identity data) with others in the ecosystem is a huge step. It’s a step encouraged, though, by the knowledge that a solid digital identity is not very useful if it can only be used in limited applications. That’s pretty much where we are today, with different logins for each website, and repetitive information needed for each sign-up.

There is so much more going on in the identity space that volumes could be written (and I will get around to it), but for today I just want to take a brief look at the members of the consortium, to get a feel for the type of products that could emerge:

Microsoft has been working on decentralized identity for some time. Over a year ago it partnered with ethereum consultancy ConsenSys and startup Blockstack Labs (more on them below) to build an open-source identity platform aimed at integrating the bitcoin and ethereum blockchains. Earlier this year it announced a new partnership with startup Tierion (more on them below) to investigate how decentralized identities linked to a blockchain could validate data, claims and agreements.

Professional services giant Accenture doesn’t seem to have been quite as active on the blockchain-based identity front, but its work on blockchain in general has been ramping up, with the unveiling of an innovative hardware solution for the protection of private keys.

Tierion has built a platform that creates a verifiable record of any data, file or business process on the blockchain. It is currently working with Microsoft on blockchain-based attestations (= something that confirms and authenticates) and with Dutch giant Philips on an unspecified project in the healthcare sector.

Gem pivoted in early 2016 away from bitcoin APIs to custom blockchain applications focusing on healthcare and supply chains. It is working with US financial services company Capital One in blockchain-based healthcare claims management, and Philips Healthcare on the creation of blockchain-based wellness apps, global patient ID software and secure electronic medical records. Its web states that it is also working on “global identifiers to link together data belonging to a person or asset, eliminating time consuming reconciliation, providing real-time transparency, reducing risk and creating better outcomes”.

Blockstack is building a “decentralized internet”, in which the content is pulled from peers rather than from centralized servers. Users access locally-owned apps and websites via a login based on identity… that the user owns. The startup began life in 2013 as Onename, which registered blockchain-based domain names. Initially built on the Namecoin blockchain, the system migrated to bitcoin and now also supports ethereum and zcash.

Netki was founded in 2014, and early the following year launched an innovative wallet naming service. It has since developed a system for blockchain-based identity in which a user’s details are not recorded on the blockchain itself, but on an application layer that allows for the system to work on multiple protocols. It is also a member of Hyperledger, and has contributed its work on digital identity solutions for worldwide regulatory compliance and legal non-repudiation. Late last year it participated in the launch, together with PwC, Bloq and Libra, of an enterprise platform based on bitcoin, called Vulcan Digital Asset Services. Its service is part of the IBM blockchain ecosystem. And at Consensus last month, it announced its collaboration with Barbados-based exchange Bitt in the compliant on-boarding of customers.

Uport was built by ethereum consultancy ConsenSys, with the aim of creating an open-source identity service on the ethereum blockchain, in the hope of giving users control of their information. Crypto exchange Coinbase has indicated that its messaging app Token (currently in testing) will include support for Uport’s identity service.

Berlin-based BigchainDB was originally Ascribe, a blockchain-based art authentication service. Since then the firm has rebranded, and now focuses on developing blockchain solutions for enterprises. It offers a combination of blockchain-like features with some traditional database characteristics, such as noSQL query language and faster transaction rates. In early 2016 it launched the IPDB Foundation, a non-profit aimed at developing the ecosystem around a new kind of blockchain-based database, built to serve identity and licensing needs.

The not-for-profit Sovrin Foundation (created in 2016 by blockchain startup Evernym) has an international board of trustees that includes representatives from banks, credit unions, education and retail. Its goal is to develop an ecosystem around a ledger (built and contributed by Evernym) on which individuals control their identities. It recently handed over its Project Indy – an identity solution built on a hybrid blockchain platform – to the Hyperledger consortium (of which is is a member). One of the innovations is that the identity information is never written to the ledger. Bits of it get anchored to the ledger, so there’s proof it existed on a certain day.

Civic launched in 2016 to stop identity theft, and recently announced the launch of a login authentication service – a blockchain-based platform that will offer users the chance to develop one digital identity, and use that to log in to any website without being tracked. Civic users will be able to prove their identity when logging in, without sharing that information with the website.

IDEO is an international design and consulting firm. Its research arm IDEO CoLab has identified blockchain technology as one of four key technologies that will impact society.

Mooti has developed a blockchain-based service that not only protects your identity, but will also validate the relevant components for web services or logins, without actually revealing information. Like Netki, its “Identity Chain” is part of IBM’s blockchain ecosystem.

Blockchain Foundry grew out of Syscoin, a cryptocurrency and protocol that allows near-zero cost financial transactions on a wide variety of marketplaces. The foundry focuses mainly on data security, leveraging decentralized networks, and later this year will roll out proof-of-concepts for medical, legal and real estate applications.. Last year it incorporated into Microsoft’s Azure platform, offering e-commerce solution Blockchain Market.

Iceland-based Authenteq offers automatic identity verification that can be installed via an API on just about any online marketplace or website. Its goal is to increase trust in P2P communities.

Taqanu, based in Norway, is developing banking services for people without a fixed address. It offers financial inclusion to refugees and others without a fixed address, by offering them a blockchain-based self-sovereign digital ID and the chance to accumulate a credit history.

Cybersecurity company RSA – known for its work in encryption, identity and cyber threat detection – has been ramping up its involvement in the blockchain space, giving sector startups an increasing amount of attention at the company’s renowned cybersecurity conferences.

South Africa-based Consent initially launched in 2015 with the goal of helping secure the integrity of medical records on a blockchain, but soon widened its scope to include financial know-your-customer (KYC) processes.

Danube Tech was set up in Vienna in 2015 to develop technology related to digital identity, such as blockchain-based identifier registration infrastructure including personal clouds, data transfer protocols and connectivity.

IOTA has focused on developing a blockchain for the Internet of Things, with fast throughput of micropayments. The protocol makes users and validators the same entity, eliminating the need to charge transaction fees. One of its current partners is German electrical utility’s R&D group Innogy Consulting.

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