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How can blockchain help to prevent the data and identity theft?

In the traditional and centralized processes, you share your data when you open an account in facebook or twitter or even an exchange and the extent is that in some cases you give all your IDs including selfie in some cases. You are not the only person to do so, there are millions of users who are sharing their data to access the social networking sites or using the services of exchanges. So all these data are getting stored in a single point central server or you can say a third party is having access to the data of million users. 

So it could be subjected to the following possible scenarios:-

  • Someone may hack that central server ad get access to the data.
  • The third party may make a deal with another party and sell your data in the exchange of huge monetary benefit.
  • In the name of a primary service, enterprises may collect the data and fulfill their secondary purpose like data trading.

If you are thinking these are merely data, not money, then I must tell you that data do have value as well and people have already made millions by trading the data, although it is a separate chapter that these data trading are not in a common domain.

How Blockchain can play a role in this domain:-

We all know that Blockchain is decentralized and distributed which completely eliminates a third party. So if blockchain technolgy will be incorporated in the aforesaid domain, then the owner of the data will be solely the user itself and data of the user will remain in the encrypted form and the key to those data will also remain with the user only. It is not like that a user will be isolated, with the incorporation of blockchain technology. The user will be connected to many enterprises, social sites, exchanges and can trade his/her data as per his/her wish only and no one can trade his/her data without the consent of the user.

Therefore with the blockchain technology in place, the data will be in encrypted form and the user can value trade those data and that much data can be shared with the enterprises which the user is willing to share and no third party can be involved in that. therefore not only the domain will remain connected between the enterprises and users but also also the value transfer of data can be done in a secured environment. Both your data and identity will remain safe and can be channelized for transnational value transfer with other entities like commerce and compliance.

Thank you and Have a great day.