Legal Decentralised IDs Ensure Secure and Private Digital Identity Verification: Kavitha Kanaparthi, Founder and CEO, Soulverse By Vishal Pathak, Content Writer

Legal Decentralised IDs Ensure Secure and Private Digital Identity Verification: Kavitha Kanaparthi, Founder and CEO, Soulverse

Vishal Pathak, Content Writer | Wednesday, 27 November 2024, 10:03 IST

Breakdown of global cybercrime costs.

Why we need digital identity is currently a 43 billion dollar question and it will be a 20 Trillion dollar question by 2032. Got your attention? Let's talk about what exactly these numbers mean, and why digital identities can bring these numbers to Near Zero. Not all numbers in dollars mean we need to bring out the fire- crackers. The above numbers represent the losses industries across all sectors globally face due to data, identity and service theft.

Every 2 seconds there is an identity theft occurring across the globe, and the number of victims falling prey to identity theft is led by India, followed by USA and Japan. The dominant force in global cybercrime is Identity Theft.

Some of the major sources for the data thieves are OTPs, SIM swaps and SS7 flaws in addition to hacking, and impersonation.

Decentralised digital identities, backed by blockchain technology, bring these losses to near zero by leveraging privacy, security and immutability of data. With enhanced solutions that create multiple layers of security and reliability, decentralised apps (wallets) that hold identities and connected data, combating data and identity theft can be the last worry while sharing or using one’s own data that is their personal control and not on a central server or database.

With technology that allows us to share data over secure immutable blockchain networks through protocols such as zero-knowledge proof (zkp), data leaks, theft and abuse are mitigated.

Achieving near zero cost of data theft through digital identities and efficient dispensation of services is on the top of the list of many governments today and several have created policies and legislation to provide a digital identity to their citizens. Framing digital identity policies is key to such widespread adoption by countries and their citizens for the infrastructure to support the interoperable nature of these identities across borders.

Recommended path to success of digital identity infrastructure:

Power of technology: Blockchain-powered Security with decentralised ledger technology.
Research-backed Innovation: Products and an infrastructure that address the core of the problems.
Shift the control of data: Identities are stored directly within the user’s application and backed up in a decentralised manner, eliminating vulnerabilities associated with servers or cloud storage.
Only humans and not bots: Verified users while securing their privacy to reduce impersonation and data theft.

As per the Global Market Insights report, Decentralised Identity Market was valued at USD 1.04 billion in 2023 and is expected to reach USD 125 Billion from 2024 to 2032, growing at a CAGR of over 70% because of the ongoing digital revolution. The market is driven by the growing number of security breaches and identity theft cases, as well as the increasing demand for secure user experiences and data privacy. With the proliferation of online services and the rise of digital transactions, individuals and organisations are seeking reliable methods to verify identities while ensuring data security and privacy.

Current Challenges in Legal Decentralised Identity Verification

Lack of Standardised Frameworks: While there have been efforts to develop standardised protocols, their implementation and acceptance remain inconsistent. This lack of standardisation creates fragmentation and interoperability issues, hindering the seamless integration of decentralised identity solutions.

Cross-Jurisdictional Legal Compatibility: Different countries and regions have distinct laws and standards pertaining to identity verification, data protection, and privacy. As such, deploying decentralised identity solutions on a global scale requires careful consideration of the legal landscape in each jurisdiction, as well as mechanisms for cross-border data transfer and legal harmonisation.

Data Protection and Privacy Compliance: Achieving compliance with existing data protection regulations, such as the GDPR act, while maintaining the core principles of decentralised identity poses a significant challenge.

Kavitha Kanaparthi, Founder and CEO of Soulverse says, “The implementation of legal decentralised identity has the potential to revolutionise various sectors, including finance, healthcare, government services, and more. By empowering individuals to own, manage and authenticate their digital identities, decentralised identities address the challenges posed by traditional centralised identity systems. To ensure the widespread adoption and usability of legal decentralised identity systems, interoperability, scalability, and user experience are among the key considerations that must be addressed mindfully.”

For more information, please visit: www.soulverse.us