The World Economic Forum (WEF) is actively exploring the potential of implementing an international blockchain-based system to facilitate digital identification of users.
The topic was extensively discussed at the WEF’s annual workshop, which focused on techniques aimed at improving user identity verification.
Brett McDowell, the President of the Hedera Hashgraph decentralized platform, actively participated in the discussion and highlighted how the use of blockchain technology could enhance confidentiality and security, surpassing other systems.
This is possible because the metadata of users’ digital identities can be securely stored in public registries, with authorized persons using cryptographic signatures to affirm the authenticity of the data.
“A blockchain-based system would enable users to control the sharing of their information, thereby ensuring they only share it when necessary, for KYC and anti-money laundering compliance purposes,” noted McDowell.
He went on to discuss how blockchain-based digital identities could have numerous economic benefits, such as preventing fraud and expanding audience reach.
Notably, McDowell pointed out that a large number of people, over 850 million, do not have access to official documentation.
Additionally, the majority of the world’s population is worried about privacy concerns, making the blockchain a viable solution.
Consequently, the WEF is eager to initiate pilot projects to explore the blockchain’s potential to address these challenges.
It’s worth noting that last year, the WEF created a task force to evaluate the role of blockchain technology in combating climate change.
Furthermore, in 2020, the organization tested a blockchain-based platform designed to track carbon emissions.