PII and the Blockchain – Rethinking the Identity Trust Problem

The Equifax hack on PII user data (145.5M accounts and counting) has given the impetus to the identity industry to start exploring other technologies and practices around storing, distributing, and utilizing identity data.

One of the technologies that has come to front of discussion is the blockchain. The blockchain, of course, is the foundation for many successful cryptocurrencies such at Bitcoin, DASH, and RIPPLE.

But the blockchain is also the basis of blockchain-based distributed computing platforms such as Ethereum and NEO (its Chinese counterpart), whose focus has been the promotion of smart contract services on an open, public ledger.

Both the currency-focused and non-currency blockchain implementations, share the basics of the blockchain. The blockchain is an open, distributed ledger, which consists of a list of records (blocks) linked together via cryptographically-derived hash links. In most blockchain scenarios, these are public, anonymous servers – not owned or affiliated to any enterprise.

Here are five basic principles underlying the technology.

1. Distributed Database
Each party on a blockchain has access to the entire database and its complete history. No single party controls the data or the information. Every party can verify the records of its transaction partners directly, without an intermediary. (E.G.: a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites.)

2. Peer-to-Peer Transmission
Communication occurs directly between peers instead of through a central node. Each node stores and forwards information to all other nodes. (Every user is allowed to connect to the network, send new transactions to it, verify transactions, and create new blocks.)

3. Transparency with Pseudonymity
Every transaction and its associated value are visible to anyone with access to the system. Each node, or user, on a blockchain has a unique 30-plus-character alphanumeric address that identifies it. (Read more...)

This is a Security Bloggers Network syndicated blog post authored by Garret Grajek. Read the original post at: Cylance Blog