Digital identity is one of the most interesting and important technological developments over the last few years. Though it has roots in finance, digital identify technology is seeing applications in other industries. Over the next few years, it’s expected that digital identity management will become a primary concern for individuals all over the world. Digital identity is a more unique way of assigning or recognizing identify, that why the importance of digital identity is growing.
How do you define digital identity?
One blockchain-focused business defines digital identity as, “representations of the above information and a great deal more. Usernames and passwords for all of your online accounts, your search history, social media posts, digital photographs, scanned passport images, and so on. They’re all bound to your digital identity and linked back to you.” The foundation of your digital ID is your entire, unique digital footprint on the internet and in databases, but the concept of digital ID is growing to include details that aren’t originated digitally but can be stored and referenced digitally.
Most significant digital ID trends and developments
Some of the most important digital identity trends have taken shape over the last handful of years, including:
- Biometrics (such as fingerprint scans) are part of more identification methods, from national eID initiatives to identifying the correct use of a cell phone or tablet to allow access.
- Prior to 2017, the UN and World Bank ID4D set up initiatives with an ambitious goal of providing everyone on the planet with a legal ID by 2030.
- Digital driver’s license projects gained traction in the US, the UK, Australia, and the Netherlands. Digital driver’s licenses would allow for legal IDs to be stored in your smartphone for additional convenience and enhanced identity protection.
- Traditional passwords are becoming less effective and important in establishing digital access. The website ThreatMatrix notes that biometrics, behavioral analytics, device recognition, and other signals that cannot be faked or stolen will become increasingly crucial in digital ID, as password breaches have been involved in over 80% of documented data breaches
- Some businesses are going to see a more immediate benefit to requiring digital ID than others. Banks, airports, human resource management groups, healthcare systems, and government offices all feature very sensitive information or are part of a program or system that requires the most secure access and ID authentication. Digital ID certification helps safeguard digital spaces and information sources, as well as protect physical infrastructure by restricting access to buildings, office suites, firewalls, virtual private networks (VPNs), servers, directories, and other resources.
How can you be proactive about establishing and managing your digital identity?
How the importance of digital identity is growing and why is it important to manage?
1. Understand the extent of your digital identity
Every time you’ve registered for an account, given your email address to gain access or login information, like every social media platform, your search history, credit information, criminal history – it all counts as a part of what makes up your “digital identity.” It’s important to consider every factor when considering how to protect your identity.
2. Watch new technology developments
As more digitally-influenced IDs become mandatory, pay attention to what information will be required of you. Also, keep an eye on technology like blockchain – blockchain is a decentralized ledger that can be encrypted, with the information stored in several locations, providing a larger sense of security. It’s a way that some financial institutions have been managing and protecting financial transactions and has the potential to work for ID management as well.
Digital identities have become increasingly important as fraud and hacking continue to plague individuals and businesses. In most cases, digital identity is a more thorough, more unique way of assigning or recognizing identify. There’s no doubt that digital identity will come to affect more people and become central to the way that people do business, sign up for accounts, track purchases, and more.