The Role of Blockchain in Revolutionizing Identity and Ownership
Introduction
Blockchain technology, often associated with cryptocurrencies, has far-reaching implications beyond finance. One of the most transformative areas is its potential to address global challenges related to identity and ownership. This article, drawn from JacquesAndré Fines Schlumberger's "Blockchains & Sustainable Development Report," explores how blockchain technology can support sustainable development goals by revolutionizing digital identity, land titling, and certification processes.
Blockchains’ Role in Identity & Ownership
"All over the world, the question of identity, and in particular digital identity, is at the heart of the issues at stake in our contemporary societies, which are being digitized at breakneck speed."
"According to the United Nations, 73% of the world’s children under the age of 5 have had their births registered, but only 46% of those living in sub-Saharan Africa.1" Without legal identity, individuals face significant barriers to accessing basic services and rights.
"Of a world population of 7.9 billion people, one billion people cannot prove their identity2, which the World Bank says is critical to at least ten of the Sustainable Development Goals.3" Without identity, there is no ownership of land, no bank accounts, no access to health care, education, voting, or justice. Target 9 of Sustainable Development Goal 16 specifically calls for ensuring "legal identity for all people by 2030, including through birth registration."
Decentralized Identity
"The contribution of blockchains in the field of digital identity is to reverse the current model based on authentication and access control managed by an organization, to a model based on the verifiability of certificates controlled by a person."
"This means moving from a centralized model where the user creates a login and password and disseminates personal information to each service, to a decentralized model where the user remains in control of their personal data." This paradigm shift addresses many security issues linked to the centralization of data, making it less susceptible to hacking.
"A decentralized identity system involves three entities: an issuer, a holder, and a verifier." The issuer provides a decentralized identifier (DID) to a holder, who presents verifiable credentials to a verifier to access a service. This system enhances privacy and security, allowing users to prove their identity without revealing personal information.
Land and Titling
"Access to land, proof of identity, and the enforceability of a property title are fundamental to the inclusion of people in society." In many countries without a land registry, blockchain offers immutable and easily accessible records. This digitization of land titles solves the problem of lost documents, especially during disasters or conflicts, and reduces corruption.
"Ghana, Bangladesh, Afghanistan, India, Sweden, and Georgia are some of the countries taking a close interest in blockchain technologies to set up a decentralized land registry." For instance, Georgia has secured over 2 million land titles on the Bitcoin blockchain.4
Certification and Notarization
"Beyond digital identity and land registry, it is useful to prove the authenticity and existence of documents such as contracts, diplomas, leases, and legal acts at a specific time." Traditionally, this required public officers or third-party authorities.
"When two companies sign a contract, they can certify the document to prevent disputes about its integrity and the date of signature." Trusted timestamping services, or "Timestamping Authorities" (TSA), ensure that once a document is signed and dated, it cannot be altered, preserving its authenticity.5
Conclusion
Blockchain technology holds significant promise in transforming identity and ownership verification processes. By enabling decentralized and secure methods for proving identity, registering land, and certifying documents, blockchain supports several Sustainable Development Goals. As this technology continues to evolve, its integration with global systems can drive greater inclusion, transparency, and security, fostering sustainable development worldwide.
References
1“Goal 16: Promote just, peaceful and inclusive societies”, United Nations, SDG website, retrieved May 9 2022, https://www.un.org/sustainabledevelopment/peace-justice/
2“A billion people have no legal identity - but a new app plans to change that”, Nov 20, 2020, https://www.weforum.org/agenda/2020/11/legal-identity-id-appaid-tech/
3“ID4D. Country Diagnostic : Kenya”, World Bank, World Bank website, 2016, retrieved May 9 2022, https://documents1.worldbank.org/curated/en/575001469771718036/pdf/Kenya-ID4D-Diagnostic-WebV42018.pdf
4Using Bitfury's open source Exonum Framework, https://github.com/exonum
5“Blockchains & Sustainable Development Report”, JacquesAndré Fines Schlumberger Ph.D., Association de loi 1901 Blockchain for Good - France, blockchainforgood.fr, September 2022.