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BENI ISSEMBERT JAN 24, 2021

No more pushes and pushbacks: Digital ID solves the privacy dilemma

The need for secure, privacy-centric, fraud-proof digital identities that allow us to
demonstrate our credentials has never been greater.

39979 51 4:05

OPINION

A year unlike any other, when much of life went online, created a compelling case for digital
identity. Talk of “immunity passports,” privacy-protecting contact tracing apps and even a
potential move to online voting systems all speak to the need for robust digital identities.

In July 2020, the World Economic Forum published a brie몭ng paper covering the risks and
opportunities around “the internet of bodies.” From wearable technology to connected
medical implants, it’s evident that our future digital identities could comprise more data than
weCointelegraph.com
ever thought possible.
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But the push for digital identity
ACCEPTis also provoking strong pushback. The idea that we should

hand over even more control of our data to governments and institutions is a cause for alarm
for many people.

Related: Users vs. governments: The 'in몭nity war' for blockchain privacy may be over

Technology is the solution, not the problem

The answer to this problem doesn’t lie in maintaining the status quo. If anything, the events of
2020 have underscored that our current approach to identity isn’t 몭t for purpose. As we move
increasingly online, the cracks in the existing system are only becoming more apparent.

In the crypto space, particularly, there has been a push toward anonymity as the solution to
data privacy. But this isn’t the answer, either. It’s simply not possible to exist in the real world
and remain completely anonymous. Taking a 몭ight, paying for goods and services online,
obtaining medical treatment or being allowed to drive a car are just a few examples of
everyday actions that are tied back to our identities.

Technology is the answer. Cryptographic solutions such as zero-knowledge proofs solve the
trade-o몭 between anonymity and privacy on the one hand and being able to prove our
identity when there’s a legitimate need to do so on the other.

Real-world applications

A practical example could be the much-discussed idea of “health passports.” Let’s say you
want to take a 몭ight in early 2022. All the airline really needs to know is that you aren’t going
to pose an infection risk for fellow passengers. Perhaps you’re also entering a country that
requires immunity from yellow fever. You get your COVID-19 and yellow fever vaccines, and
the status is added to your digital ID, encrypted by zero-knowledge proofs.

You can now prove that you’re safe to 몭y without disclosing where or when you had your
vaccines, or at which clinic, or which doctor administered them. The airline could simply scan
a QR code on your phone that con몭rms you’re not going to put anyone else at risk.

While COVID-19 creates a compelling immediate use case, there are far-reaching applications.
If you want to buy age-restricted items like alcohol or tobacco, you could generate a QR code
to prove your age without needing to show a copy of your identity documents. Similarly, if you
wanted to rent a car or take out a loan, you could demonstrate your driving license or credit
history without distributing copies of personal information.

Related: Blockchain can provide the right to privacy that everyone deserves
Related: Blockchain can provide the right to privacy that everyone deserves

Preventing abuse and ensuring compliance

Underpinning this system, there needs to be a fail-safe mechanism that allows someone’s
identity to be revealed if there’s a legitimate legal need to do so. This is necessary to ensure
compliance with the relevant jurisdictions and prevent the system from being abused by bad
actors.

For example, if someone used a rental car to rob a bank or even just got a speeding ticket, the
authorities will want to know who they are. In this case, the zero-knowledge proofs can be
decrypted. However, decentralizing this responsibility across multiple parties ensures that it’s
not subject to misuse or abuse and removes the single point of failure.

In 2021, we will start to see the beginnings of a system where people can walk around with
their digital identities in their pockets. It will be the beginning of the end for antiquated,
document-based systems and the start of a new era of self-sovereignty over our data.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily
re몭ect or represent the views and opinions of Cointelegraph.

Beni Issembert is the chief marketing o몭cer of the private, enterprise-grade Concordium
blockchain. He is also a published author, a member of the IOUR Foundation and the
former chief marketing o몭cer of Beam Protocol.

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