Insuranceciooutlook

Self-Sovereign Digital Identity: Blockchain Conceptualizing Data Storage

By Insurance CIO Outlook | Tuesday, June 11, 2019

BlockchainThe tech-driven future is to store data in self-sovereign digital identity solutions in a decentralized format. Smart firms will be able to interrogate the data in real time if consumers grant access to it. These solutions are expected to become a reality in the coming years. How organizations and consumers deal with data is changing with the advent of the blockchain identity, and provenance solutions also continue to evolve. Smart contracts are an additional layer in the blockchain stack, which will make sure that data is used, in the way in which users have approved. These are valuable as they cannot be corrupted. The automatic process shall then get coded in a ledger that neither party owns, nor can remodel without approval from the different parties.

Individuals now are custodians of their data once validated correctly and automating processes that involve multiple parties with conflicts of interest. To understand the mechanism better, if a group of budding novelists gets together online to write a new book, many people should agree on each page in real time. They will have to take references from other novelists, and after the slot is changed to a narrative, the next chapter will again need to have a referral, until the story has assembled. Ledgers built in blockchain technology are similar. An entry cannot be removed. The immutable ledger is made by people around the globe who are unknown and may also dislike each other. There are millions of books that look indistinguishable as they grow page by page in near real time.

The immutable ledger was used at first to record the origination and transactions of Bitcoin; many realized that idea could be used to have self-governing markets transacting any value. The self-sovereign data solution is portable and can be monetized as well. This could genuinely transform many things. If consumers are the only ones to control the data, they will be more willing to build digital twins.

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