Eliminating usernames and passwords using blockchain
Blockchain User Authentication
Currently with most e-commerce systems, online authentication relies on a password or on rare occasions the use of Two-factor authentication.
When you have to enter only your username or password, that’s considered a single factor authentication. Two-factor authentication requires the user to have three types of credentials before being able to access an account.
This may be something in the form of a personal identification number PIN, some thing you have, such as an ATM card, or phone, etc.
Or something you are, such as a biometric like a fingerprint, iris scan or facial recognition.
Two-factor authentication, adds an extra step to a basic login procedure. The second factor makes your account more secure, in theory.
Enterprises with software that implements two-factor authentication are able to provide users with a better user experience and achieve stronger security.
The problem with these methods is that passwords are notoriously insecure and Two-factor authentication generally relies on sending a code over SMS or third-party service. Using biometrics requires that a fingerprint scan, iris scan or facial recognition scan be validated.
A solution to this problem could be the blockchain.
No need to maintain a central database full of usernames and passwords that are vulnerable to breaches by hackers.
The blockchain is the secure distributed ledger technology first created to track the claim ownership.
The blockchain offers a promise of a trusted record that can reduce fraud. An advantage to using blockchain as a means of controlling identity information is the ability to extend security to your enterprise’s entire ecosystem.
For many companies, logging into an online ticketing, e-commerce or POS type system requires identity authentication to go beyond existing employees.
It has to be extended to partners, sales channels, sales agents and obviously customers who log into the company’s system and are then able to use blockchain to verify their identities.
A blockchain ID is a unique identifier that is secured by a blockchain a user can cryptographically link their blockchain ID to a profile containing arbitrary information, e.g., name customer details, sales information and history, discounts and reward points, etc.
There is a definite requirement for better identity management on the web. The ability to verify an individual’s identity when logging into an e-commerce system is a linchpin of the customer’s access and of past and future transactions that happen online within that system.
With the integration of distributed ledger technology within a large multivendor, multisite multi-module system such as ODIN, keeping accurate records in such a distributed system, will be a common part of the identity management ecosystem and help improve all aspects of it.
By combining the decentralized blockchain principle with identity verification, a digital ID can be created to act as a digital watermark, which can then be assigned, to every online transaction within the main system and all associated websites and subsystems.