How Can Blockchain Save Millions in Identity Theft?

By Sumedha Bose

In today’s data driven digital society, we need to be aware of how big companies are using and selling our data. We also have to devise a way to protect ourselves from identity theft which could cost us millions. But how?

Identity theft on the internet is as common as people sweating on a hot summer day. You see and hear about it all the time. Your neighbour got duped by some guy posing as his bank executive? Someone in your family just had his account cleared out?

If you are answering yes to those, then you have had first hand experience of what identity theft feels like. It is way too easy for criminals to dig up your personal information on the internet these days, especially through dark web.

So there must be a iron clad way to safeguard your data, or else we are going to constantly remain vulnerable to hacks. Thankfully, blockchain technology is the digital solution you need.

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How Can Blockchain Prevent Identity Theft?

Before we get to how blockchain can be used to protect your identity, let’s understand what the technology is in the first place.

“A blockchain, originally block chain, is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. By design, a blockchain is resistant to modification of the data.”

To put it simply, you can keep adding data to a blockchain, and it will be stored in a ledger that is accessible to all, immutable and completely secure. The entire system is built on the concept of decentralization and transparency.

In U.S. alone, 16.7 million people were victims of identify fraud last year. Most people don’t even find out that they have been cheated until much later.

If one uses blockchain technology to store their data, it obviously makes the data much more difficult to steal. Nobody can successfully hack into a blockchain without leaving a digital trail.

Since each block is built from the previous one, it is virtually impossible to alter any one specific record.

Not just protection against identity theft, blockchain can also ensure that you do not need to sign over all your data to the big companies. You can take control of your own data and if you wish, monetize on that as well. You can choose what information to share publicly, and what to not disclose.

This web of data that is protected and secure is what we are aiming towards with the implementation of this technology.

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Sumedha Bose

Sumedha uses words as her crutch to get by in life. She takes a keen interest in debating, dancing and destroying the patriarchy in her free time. She can be contacted at [email protected].

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