Digital identity based on NFT – online portal from IT Management

In the real world, you can identify yourself with your ID card. In the world of the Internet, on the other hand, there is the digital identity. But that does not mean a digital identity card.

A person’s digital identity contains data that is necessary to uniquely identify him or her. With the advancement of digitalization, this technology is also advancing. A new type of digital identity is based on a blockchain and NFTs. But what innovations and benefits can the new digital identity score with? What exactly is digital identity? And what are you going to use them for?

For digital identity

To be able to identify yourself in the online world, you must have a digital identity. This does not only include personal data such as address, telephone number or place of birth. This also includes data such as passwords and usernames or email addresses. It serves the purpose of confirming his identity online. With online banking or on social media platforms, one’s own person can, for example, be authenticated – often several factors are also included, such as SMS or TAN generators. That way, the companies can be sure that it is the specified person.

Digital identity based on NFT

When registering, you go through the same process every time: you are asked for your e-mail address, you will receive a confirmation link and you must enter all your data. With the digital identity based on NFT, all these steps are no longer necessary. All information can be transferred very quickly with just a single click. Email address and passwords should never be entered again. You can also create a bank account with a single click. The technology is based on the fact that your own data has already been verified by a trusted verification provider and that this successful verification is stored on the blockchain as a fingerprint. Subsequent providers can therefore rely on this verification. The new generation of the Internet, Web3.0, has the advantage that it can connect your wallet with various websites. Normally you need to show your ID card to create an account, but online it is sufficient to link to the wallet on which the digital identity is stored in the form of an NFT. Since this non-fungible token cannot be transferred, the identity cannot be transferred either.

The benefits of blockchain

NFTs are based on blockchain technology. It offers a decentralized platform for trading, transactions and more. Due to the decentralization of blockchain, no platform is required. It is freely available to everyone. In addition, blockchain technology scores with certainty. By linking the datasets, all actions on the blockchain are more secure and transparent than on key platforms. If you design a digital identity based on NFT – and thus also on the basis of the blockchain – data can be stored and transferred securely. As a result, providers can trust and no longer have to submit to data verification.

Who has access?

With blockchain-based digital identity, you can decide who you leave your data to. As long as you do not release them to a specific person and actively decrypt them with their own wallet, no one has access to personal data such as address or phone number. You can also decide which data is passed on to whom. When registering or creating a bank account, the provider decodes only the data that he needs for this. However, once the data has been shared, it cannot be undone so quickly. You should therefore think carefully in advance about who you are sending your data to. Each provider has the ability to verify this data

Conclusion

Digital identity already makes life a lot easier. But saving it on a non-fungible token would mean even more benefits. Digital identity based on NFT not only guarantees high security but can also score with a fast verification method. In addition, it serves data protection and anonymity. The new type of digital identity offers many benefits and will make traditional methods like KYC (Know Your Customer) much more user-friendly and faster. It is one of many steps that make life in Web3.0 even easier. The NFT-based digital identity is just a small indication of what else might come of digitization and technology in the future.

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