The future of sharified identity depends on the market forces. After careful analysis, we’ve come to see how market forces are, indeed, the driving force behind the success of a future with sharified identity.
Blockchain identity is one layer below identity verification companies. This means that right now, blockchain identity companies depend on identity verification companies to operate. Blockchain identity stores all the verified data that IDv companies do. After IdV companies verify a person’s identity, the verification can be stored and be reused forever with blockchain identity technology. This means that once everybody gets their identity verified once, IDv services are no longer necessary. As a result, the rise of blockchain identity technology will lead to the shrinking of the identity verification industry.
Now, you might be wondering, if the blockchain identity industry acts as the oppressor of the identity verification industry, then why would identity verification companies cooperate in the first place? Well, this is because of an important distinction between an industry and individual firms within the industry. In this case, the best interest of the industry is not the same as the best interest of an individual firm within the industry.
Let’s take a look at Identity Inc., an IDv company seeking to thrive. In the short-run, as they’re facing quarterly reports, Identity Inc. is incentivized to maximize their revenue this year, not the next, or the year after. After all, Identity Inc. is still subject to human nature… ten years down the road is difficult to imagine, and the short term is prioritized over the long term. Therefore, Identity Inc. takes a partnership with Unum ID to triple their customer base and expand their annual revenue by 20%. Identity Inc. is happy, and they outcompete many other identity verification companies in their space. In the medium-run, Identity Inc. will rise above the pack, perhaps even monopolizing the industry if blockchain identity companies continue to choose Identity Inc. as a partner. However, in the long-run, as blockchain identity companies store all verifications on their platform, identity verifications provided by Identity Inc. will become less and less needed, until one day, the company, and industry, becomes irrelevant.
This is a quick, oversimplified walkthrough of how the first identity verification companies will hop on board with blockchain identity companies. In the short run, this will benefit the companies that choose to partner with Unum ID. Although in the long run, this will completely eradicate the identity verification industry.