Blockchain identity software is used for both identity management and identity verification. These platforms are built on a blockchain or distributed ledger system that provides improved traceability and documentation over traditional identity management solutions that rely on centralized systems. Because these tools are built upon blockchain-based ledgers, every activity and change made by an individual is documented on the blockchain.
Companies use these tools to first ensure that identities are accounted for and protected. Furthermore, businesses use these tools to build a historical record of activity and risk to be used when identifying suspicious behavior or transactions. Many blockchain identity tools rely on zero-knowledge verification, meaning identities are verified without presenting any sensitive information about the individual. Zero-knowledge verification allows users to build out passwordless authentication systems and zero-knowledge proofs for identities.
Blockchain identity solutions differ from identity management software, as those solutions act as an identity verifier.
To qualify for inclusion in the Blockchain Identity category, a product must: