Sharified identity ties each offline individual to one online identity through a single mobile device. It then has the power to quickly share the verified data from the mobile device to other services using cryptography. Hence the name -- shared, verified identity. With these unique properties, sharified identity speeds up the process of KYC verification, drastically decreases fraud, and has the potential to reduce cost of (and even monetize) KYC verifications.
This triple threat is great for the user experience, but also appeals to the needs of Washington, Wall Street and Silicon Valley.
Our political system can greatly benefit from blockchain identity tech. For one, the authentication methods of Unum ID’s technology, using a user’s phone and biometrics, ensures that bots or duplicate accounts cannot exist for one single person. One individual offline will have one identity online. When applied to elections, bots and Russian interference will become a headache of the past.
Unum ID’s technology can 10x the power and security of government IDs. First, it will eliminate the easily copied static, plain-text IDs, like social security numbers. Instead, Unum ID provides an ID number that can change frequently and be stored cryptographically. Second, Unum ID enables public/private key encryptions to make the production of fake IDs nearly impossible. Third, instead of having to go to the government to check whether their ID has been revoked, citizens can quickly check the status of their IDs by a few clicks on their mobile device. Lastly, the government’s liability in storing such a large amount of sensitive data in a centralized database would be eliminated. Blockchain identity technology allows for all sensitive information to be stored locally on each user’s device or through decentralized cloud storage. This is good as it allows users to verify their identity within clicks and seconds from their mobile device. This solution is also more secure, as data is decentralized and eliminates the risk of data breaches and other data risks. Finally, Unum ID’s technology is a two-way street, allowing the user to verify whether the site is authentic in tandem with the site verifying the user. This prevents all types of fraud such as SIM swapping and phishing attacks. Finally, costs can be significantly reduced with sharified identity, because sharing ID verifications allow companies to share the cost of verifying identities, ultimately minimizing the cost for each individual firm.
An interesting government use case is that of a liquor store in Vermont. With Unum ID, an individual’s identifying information is stored within his or her mobile phone. Instead of showing a government issued ID which includes everything from date of birth to home address to potentially your citizenship status, the user only shows the information that is required and nothing else. With Unum ID, sensitive information can be concealed, but necessary information can always be made available.
With greater security and convenience, blockchain identity technology makes the perfect sidekick to government initiatives in Washington.
We highlight exactly how sharified identity benefits banks in our article, “How Sharified Identity Can 10x Your Bank’s Bottom Line”, but here are some key points:
Banks suffer from data breaches which can cost anywhere from $4 million to over a billion. With Unum ID’s decentralized architecture, banks will no longer incur tremendous costs suffered from data breaches.
The verification process through Unum ID is not only faster, but also more secure, than previous KYC verification processes. With a two-way QR code authentication and the need for the physical mobile device of the user, phishing attacks and SIM swapping are made impossible. As a result, banks reduce their lost revenue from fraud, which currently totals to about 1-2% of annual revenue.
Sharified identity allows for faster onboarding. New customers can open accounts in five minutes rather than five days, with previously stored verifications on the user’s device. Faster and more secure onboarding leads to greater customer acquisition and satisfaction.
Old Sunk Cost Becomes a New Revenue Stream. Rather than storing data just for the purpose of storing data, sharified identity allows you to share verified identities with other companies that need it. This means that if your company provides the verified identity to another company, your company makes bucks. Your bank’s newest revenue stream is here -- let’s hear the cha chings on Wall Street.
Ah, and now we circle back to Silicon Valley, where blockchain identity technology was first developed in the high-rent apartments of the Jobs and Wozniacks. If the Valley became the hype king for using technology to change the world, then it must be down their alley to give blockchain technology its robust, industry-changing use cases.
On an ideological level, Silicon Valley loves sharified identity for its power to bring technology into the world as a positive force for change. It wants to take credit for securing our democracy, for improving government IDs, for transforming finance, and for transforming the way we sign up for accounts.
More practically speaking, however, tons of Silicon Valley startups, like financial institutions, require users to onboard through tedious processes. Mirroring sharified identity’s application to banks, previously stored verifications can drastically reduce onboarding time, increase customer acquisition, and eliminate data breaches for tech companies. The applications of sharified identity can reduce fraud in e-commerce by turning card not present transactions online into card present transactions, make it trivial to add new gig workers to your workforce, and provide a way to decentralize data storage and avoid costly breaches. As a result, tech companies will make more revenue and reduce burdensome costs.