Because it is connected with cryptocurrency, Blockchain technology is frequently viewed with skepticism by users. However, industrial firms are attempting to demonstrate that the usage of this technology may be helpful to society. Microsoft has announced intentions to employ “block chain” to store and process digital identification data.
Microsoft aims to use blockchain technology in conjunction with the Decentralized Identity Foundation (DIF) to tackle some of the issues the corporation confronts in digitally managing identities and private data, therefore improving privacy and security across the board. elements – in both the physical and digital realms
According to the Redmond company, it is currently common for users to hand over personal information to companies and numerous applications and services – an act that ends up spreading private data across several different providers. Given this, it is essential that individuals can control all elements about their digital identities, and for that, it is necessary to create a secure and encrypted digital hub, where they can store their identity information and easily access it. them and control them.
Practical and reliable solution
The idea, therefore, is to develop an alternative that will allow processing huge volumes of identity information without congesting the blockchain network. And, despite not having a prototype of this solution yet, Microsoft carried out a research together with DIF, and shared the results.
According to the creator of Windows, Blockchain technology is suitable for several other applications, in addition to being used to encrypt digital currencies. Thus, the user will be able to have control of their digital identity, as well as store personal data safely, instead of resorting to third-party services for this.
How should it work
Microsoft’s proposal is to launch new services, among which are:
- Decentralized Identifiers (DIDs): a W3C specification that defines a common document format for describing the state of a Decentralized Identifier;
- Identity Hubs: an encrypted identity data store that has the functionality to relay messages/intents, in addition to managing attestations and identifying specific computer endpoints;
- Universal DID Resolver: a server that resolves DIDs via blockchains;
The company also comments that, after examining decentralized storage systems, consensus protocols, blockchains and a variety of systematized standards, they believe that blockchain protocol technology is suitable for enabling decentralized identifiers (DIDs). According to Microsoft, these solutions should still allow developers to have access to a more accurate set of certificates, which can also reduce legal and compliance risks (such as GDPR, KYC/AML) by processing this information, rather than controlling it. them by the user.
The idea is that it is possible to create an alternative to the centralized (and considered outdated) standards of encryption of personal information, especially with regard to speed, convenience and stability for the user. In this way, the company aims to collaborate with decentralized Layer 2 protocols, which operate on top of common public blockchains to achieve global scale, while still preserving the attributes of a world-class DID system.
More technical details that prove the concept of implementing these solutions are expected to emerge soon. For now, decentralized identity apps are already slated to come to the Microsoft Authenticator program, which is used by millions of people to prove their identities.
