As the world is continuously moving towards full digitization in virtually all aspects of life, the concept of digital identity arises as the necessary means to support such a shift. While the digital economy brings huge opportunities to masses, the real divide and economic disadvantage occur for those who have no digital trail.
According to a study conducted by McKinsey, nearly 3.4 billion people worldwide have limited ability to use their identification digitally with almost one billion people lacking any form of legally recognized ID.
These figures only apply to people. As one can imagine, the numbers skyrocket for the digital identity in the field of IoT in which ensuring secure digital identities for IoT devices is a crucial step in risk management.
However, looking at the bright side, the digital ID technology is now ready and more affordable than ever, making it possible for a shift to digital approaches.
What is a good digital identity system?
According to the research done by Omidyar Network, to design a good digital identity system, both technical design and system governance play key roles. In recent years, experience shows that technical design can be more effective than the legal framework of a certain country or region thus to achieve a wide-scale mass adoption of digital identity several key aspects must be considered: