The Global Identity Crisis
In today's world, having a legal and verifiable identification is essential for numerous aspects of life, from opening a bank account to accessing basic services such as healthcare and education. Yet, many people worldwide lack access to these fundamental documents.
According to the World Bank, around one billion people globally lack official identification, and the majority of them live in low-income countries. These individuals do not have a legal identity, which can hinder their access to essential things like education, limit their ability to vote or participate in political processes and prevent them from fully interacting in society. Additionally, individuals without identification often lack proof of citizenship, leading to statelessness, which can result in discrimination, and lack of access to healthcare, education, and other essential services.
Real World Threats of Lacking Legal Identification
Financial Exclusion: Lack of identification can prevent individuals from accessing formal financial services such as bank accounts, credit, and insurance. This can limit their ability to save, invest, and build a secure financial future.
Limited Access to Healthcare: Without identification, individuals may struggle to access healthcare services, including vaccinations and medical treatment. This can result in untreated illnesses and poorer health outcomes.
Exclusion from Education: Lack of identification can limit access to education, including enrollment in schools, universities, and training programs. This can prevent individuals from acquiring the knowledge and skills necessary for social and economic advancement.
Limited Job Opportunities: Without identification, individuals may struggle to access formal employment opportunities, which can lead to lower wages and job insecurity.
Limited Access to Government Services: Lack of identification can prevent individuals from accessing government services such as social welfare, housing, and legal aid. This can result in increased poverty and social exclusion.
Reduced mobility: Without identification, individuals may face restrictions on travel and migration, which can limit their ability to move freely and access new opportunities.
Vulnerability to Trafficking and Exploitation: Individuals without identification are more vulnerable to trafficking and exploitation, including forced labor and sexual exploitation.
Reduced Personal Safety: Without identification, individuals may be unable to prove their identity in emergency situations, which can result in increased vulnerability to violence and abuse.
Political Exclusion: Lack of identification can prevent individuals from participating in political processes such as voting and standing for office, which can limit their ability to influence policy and shape the future of their communities.
Inability to Assert Legal Rights: Without identification, individuals may struggle to assert their legal rights, including access to justice, legal representation, and due process. This can result in increased vulnerability to injustice and discrimination.
While several global initiatives have been created to help solve this problem, technological advancements including blockchain, offer potential solutions as well. Blockchain technology enables individuals to control their identity, providing a self-sovereign identification system. This means that individuals can prove their identity without relying on a centralized authority, such as a government or financial institution. Blockchain technology can help individuals own their data and manage their identities without fear of data breaches, identity theft, or discrimination.
How Blockchain Technology Can Impact the Global Identity Crisis
Decentralized Identity: Blockchain-based identity solutions can provide individuals with self-sovereign identity, meaning they have complete control over their own data and can prove their identity without relying on centralized authorities.
Security: Blockchain-based identity solutions use cryptography to secure personal information and prevent unauthorized access or manipulation of identity data.
Privacy: Blockchain-based identity solutions can provide individuals with greater privacy by allowing them to control what information is shared with whom.
Interoperability: Blockchain-based identity solutions can be designed to be interoperable with other systems and standards, enabling seamless integration with existing identity systems.
Accessibility: Blockchain-based identity solutions can provide a low-cost, accessible solution for individuals who lack traditional forms of identification, such as refugees or marginalized populations.
Verification: Blockchain-based identity solutions can provide a tamper-proof record of an individual's identity, enabling easy and efficient verification by third-party services and organizations.
Trust: Blockchain-based identity solutions can establish trust between individuals, organizations, and governments, reducing the risk of fraud and identity theft.
Portability: Blockchain-based identity solutions can be easily transported across borders and used in different jurisdictions, enabling greater mobility and access to services.
Empowerment: Blockchain-based identity solutions can empower individuals to take control of their own data and use it to access services and opportunities on their own terms.
Innovation: Blockchain-based identity solutions can foster innovation by enabling the creation of new identity-related services and applications, such as digital signatures and smart contracts.
10 Real-World Examples of How Blockchain Could Solve the Global Identity Crisis
Self-Sovereign Identity Wallets: A self-sovereign identity wallet is a blockchain-based digital wallet that allows individuals to store and manage their own identity data, such as biometrics, personal information, and official documents. This wallet can be accessed by the individual through a secure private key, and they can choose to share specific information with third parties as needed, without giving up control over their data.
Digital Notary Services: A blockchain-based digital notary service can provide tamper-proof, immutable records of important documents such as birth certificates, marriage certificates, and educational certificates. This can provide individuals with an easily verifiable and portable record of their identity, which can be used to access services such as banking, healthcare, and education.
Identity Verification Services: A blockchain-based identity verification service can use biometrics, such as facial recognition or fingerprint scans, to verify an individual's identity in a secure and decentralized manner. This can be used by businesses and organizations to quickly and easily confirm the identity of customers or employees.
Decentralized Credit Scoring: A decentralized credit scoring system can use blockchain-based identity data to provide individuals with a credit score, without relying on traditional credit agencies or financial institutions. This can provide greater access to credit for individuals who lack traditional forms of identification or credit history.
Voting Systems: A blockchain-based voting system can enable secure and transparent voting, using identity data to confirm the eligibility of voters. This can reduce the risk of voter fraud and improve the integrity of elections, particularly in countries where traditional voting systems are subject to corruption or manipulation.
Land Registries: A blockchain-based land registry can provide secure and transparent records of land ownership, reducing the risk of land disputes and enabling greater access to land rights for marginalized populations. This can be particularly useful in developing countries where land rights are often unclear or disputed.
Healthcare Records: A blockchain-based healthcare record system can provide secure and portable records of an individual's medical history, which can be easily accessed and shared with healthcare providers as needed. This can improve the quality of healthcare services and reduce the risk of medical errors.
Digital Signatures: A blockchain-based digital signature system can enable secure and decentralized signatures, which can be used to sign contracts, agreements, and other legal documents. This can provide greater security and efficiency in legal transactions, particularly in countries where traditional signatures are subject to fraud or corruption.
Social Welfare Distribution: A blockchain-based social welfare system can enable the efficient and transparent distribution of welfare payments, using identity data to confirm the eligibility of recipients. This can reduce the risk of fraud and ensure that welfare payments are received by those who need them most.
Digital Identity Marketplaces: A blockchain-based digital identity marketplace can enable individuals to sell or license their own identity data, providing a new source of income for individuals and enabling greater access to identity data for businesses and organizations. This can empower individuals to take control of their own identity data and use it to their own advantage.
The global identity crisis remains a significant issue worldwide, personally affecting millions of individuals. Providing legal and verifiable identification is essential to ensuring access to basic services, protecting against exploitation, and promoting global safety. A prioritization of Self-sovereignty in the future, through the use of blockchain technology, can help address the global identity crisis by allowing individuals to control and manage their identity independently. All of which, makes it even more important as we move towards a more digital world, that addressing the global identity crisis must remain a mission of high priority.