Calls for a blockchain digital identity system capable of safeguarding people’s identity are gaining momentum in Europe. Spearheading the need for such a system is the European Union Blockchain Observatory and Forum (EUBOF) in a new EU blockchain report.
Digital Identity System
A report prepared by ConsenSys AG working for EUBOF has shed more light on the need for the blockchain digital identity system. The report also details blockchain capabilities that could go a long way in benefiting governments.
For starters, the EU blockchain report suggests the development of user-controlled digital identity system. Such a system would put users at the forefront in controlling who gets access to their data. The secure and private systems would also enable sufficient proof of identity. It should also avert the possibility of sharing too much information on transactions.
The idea is to come up with a self-sovereign blockchain system, where people safeguard their personal information without relying on third parties. The system would get rid of intermediaries, as individuals will act as custodians of their data.
However, the proposed blockchain digital identity system could spell more trouble for governments according to the report. The government will have to take into account how digital identity attributes change over time during people’s lifecycle.
“[…] and will need to offer different levels of transparency depending on the context (e.g., verifying that someone is over 18 without providing a birth date). Identity platforms also need to be inclusive of all citizens, including those who, for whatever reason, have no access to or are not able to use technology,” read the report.
Calls for National Currency
The EU blockchain report also proposes the need for national governments to embrace digital versions of their national currencies. Such a move would make it easy to embed digital national currencies on smart contracts.
National digital currencies should go a long way in fuelling blockchain innovation. The system should make it easy for people to come up with automated agreement powered by smart contracts.
Calls for national digital currencies comes just a day after some European countries made a declaration calling for the promotion of the ledger technology in the region. The group is also calling for increased use of the technology to protect citizen’s privacy.