Identities and identification

It is estimated that 1.1 billion people live without an officially recognized identity.27As a result, they are unable to participate in commerce, financial markets and have no access to services such as healthcare. An accurate and accessible identity system allows for inclusion and participation in global trade. A Blockchain system could leverage digital ID systems which have appropriate authentication mechanisms. By combining decentralized Blockchain principles with identity verification and cryptography, a digital signature can be created and assigned to every online transaction affecting an asset. This has several potential benefits for consumers, businesses and regulators alike. First, creating an identity on a Blockchain over who has their personal information and how they access it. Blockchain identity management platforms could also simplify procedures associated with burdensome, costly and time-consuming KYC obligations as well as better complying with data collection and privacy regulations. For businesses, this could lead to stronger regulatory compliance, lower costs, reduced fraud28, and a more seamless experience for clients. Similarly, for regulators, a Blockchain based process could allow for prompt auditing and increased efficiency in compliance control, monitoring and quality. Taken holistically, improved means of verifying and managing digital identities and personal information based on Blockchain technology could increase transaction efficiency and further facilitate trade.