Proper Identity Management Systems Extend Beyond The Blockchain

Improper management of identity is a fundamental reason for a lot of problems encountered in the finetech and identity management industry as a whole. This includes but is not limited to issues such as corruption, fraud, theft and several forms of graft. This weakness is exploited by taking advantage of other reasons such as system inefficiencies and deliberate dishonest human interference for personal or organisational gains.

Problems in ID management

Identities are improperly managed most of the time because the real owners lose control of their data as soon as they are submitted to the companies. Centralized management of identities and KYC data is overwhelmed with so many disadvantages and security challenges that it is becoming a subject of serious concern especially in the fintech and financial services industry.

Ideally, identity management describes the management of individual identities, their authentication, authorization, roles and privileges within or across system and enterprise boundaries with the goal of increasing security and productivity while decreasing cost, downtime, and repetitive tasks.

Most of the public data are usually stored in centralized servers with large storage capacity. Therefore, crucial information of a lot of people are held in one place. This exposes such stored data to a lot of risk. For instance, in the event of a crash, the amount of loss will be enormous, also, having a lot of valuable information in one place makes such a server a high target for hackers, and makes it more prone to attacks. This is because the rewards for a successful breach increases with the number of identities that are held in the database.

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