• Blockchain technology enables dependable, secure, and safe management and storage of digital identities, providing a consistent, interoperable, and tamper-resistant infrastructure that offers significant benefits for organizations, users, and Internet of Things (IoT) management systems.
• Blockchain technology has the potential to revolutionize digital identity management by providing a decentralized and secure way to store and share identity information.

We are all well aware of blockchain technology, but how much do we know about blockchain on Digital Identity? This blog is all about introducing you to the new market of digital identity blockchain.

As Industry 4.0 spreads, the boundaries of the technological revolution have been surpassed in many ways. Consequently, digital identity has become a critical aspect of digital services. Blockchain technology enables dependable, secure, and safe management and storage of digital identities, providing a consistent, interoperable, and tamper-resistant infrastructure that significantly benefits organizations, users, and Internet of Things (IoT) management systems.

Since digital identity technologies are relatively new in the market, it is crucial to have a good understanding of the impact of blockchain technology on digital identity and its transformative potential. By reviewing the following comprehensive information, you will gain the knowledge necessary to determine whether blockchain is a dependable option for digital identity.

What is Digital Identity, and Why is it Important?

Digital identity refers to an individual or entity’s online representation, including personal data, attributes, and digital behavior. The set of information uniquely identifies a person or organization in the digital world.

There is a common misconception that digital identity only pertains to personal data available online to anyone. However, this notion needs to be narrower, as digital identity encompasses much more than social media profiles, email addresses, and physical addresses.

In reality, it encompasses all the information about you that can be found online, such as pictures, shopping habits, website usage patterns, and even banking information.

Digital identity is related to blockchain as it helps ensure accuracy while speeding up the customer onboarding process. Effective digital identity management is critical to prevent money laundering and fraudulent activity. Furthermore, such management could contribute to streamlining and standardizing citizen services nations provide.

For instance, Singapore’s Smart Nation initiative includes the National Digital Identity (NDI) system, which allows citizens secure access to e-governance services. Nonetheless, if not managed appropriately, digital identity can give rise to privacy and security concerns.

Challenges of Digital Identity Management

While digital identity can provide convenience and effectiveness, it also brings certain risks and challenges due to the increasing prevalence of cyberattacks in the digital age. Therefore, the safe management of data is crucial for online service providers. This requires significant investments and expertise in cybersecurity to implement security measures, develop internal plans for fraud prevention and risk assessment, and effectively tackle the challenges associated with digital identity.

Below are a few more challenges:

• Security: Cybercriminals constantly seek ways to steal identities and personal information. Therefore, it is essential to implement strong security measures such as encryption and two-factor authentication to protect digital identities from being stolen or compromised.
• Privacy: Individuals may be uncomfortable with sharing their personal information online and may not trust the organizations or entities collecting their data. Therefore, it is essential to establish clear privacy policies and give individuals control over their personal information.
• Interoperability: Digital identity systems are often siloed and incompatible with other systems. This can make it difficult for individuals to use their digital identities across different platforms and services. It is important to develop interoperable digital identity systems that can work across different platforms and services to address this challenge.
• Legal and regulatory compliance: Digital identity management must comply with various laws and regulations, such as data protection laws, consumer protection laws, and anti-money laundering laws. Failure to comply with these laws can result in legal and financial consequences.
• User adoption: Finally, adopting digital identity systems can be challenging. Some individuals may need more awareness or trust in the system to refrain from using digital identities. To encourage adoption, it is important to educate individuals about the benefits of digital identity management and provide user-friendly interfaces that are easy to use.

What is Digital Identity in Blockchain?

As per Allied Market Research, the global market size for managing blockchain identities was valued at USD 107 million in 2018 and is anticipated to grow at a CAGR of 79.2% from 2019 to 2026, reaching a market value of USD 11.46 billion.

Decentralization is a defining characteristic of digital identities in blockchain networks, allowing individuals to manage their personal information and exercise greater control over it. These digital identities have diverse applications, including access control, digital signature, voting, and identity verification, which help enhance the security and reliability of the blockchain network by mitigating fraud risks.

Final Words

In conclusion, blockchain technology has the potential to revolutionize digital identity management by providing a decentralized and secure way to store and share identity information. Using blockchain for identity management can help reduce identity fraud, increase user privacy and control, and improve efficiency and convenience for users. However, some challenges need to be addressed, such as interoperability between different blockchain platforms and ensuring the protection of user data. As the technology continues to evolve, it will be interesting to see how blockchain will shape the future of digital identity management.

Blockchain’s decentralized structure makes it ideal for developing data management systems that are both transparent and trustworthy. With blockchain, it is possible to merge various digital identities from different platforms into a single digital identity that the user can control and own. Further research is recommended to gain a deeper understanding of blockchain-based digital identity and its practical applications.

• Proof of Replication (PoRep) is a consensus mechanism demonstrating to blockchain networks that a miner can maintain and present a copy of data on a particular storage location.
• The three challenges, namely Sybil Attack, Outsourcing Attack, and Generation Attack, are all related to replication. The ability to overcome these three challenges differentiates PoRep from other kinds of proofs.

The advent of technology has touched many segments, including IT, virtualization, networking, cloud computing, storage service, cyber security, blockchain, etc. Users and businesses are flooded with various service providers in this competitive age. People demand trust, decentralized financial solutions, and transparency when it comes to blockchain. In this public network, developers, node operators, miners, and investors are active players.

A consensus mechanism is needed between these players to stay up-to-date and in consonance with the changes that keep happening. Proof-of-replication (PoRep), in short, is a process to convey that everything is going according to the regulations.

What is Proof-of-Replication (PoRep)?

Proof of Replication (PoRep) is a consensus mechanism demonstrating to blockchain networks that a miner can maintain and present a copy of data on a particular storage location. This combines proof-of-reliability (PoR) with proof-of-space (PoS), two additional mechanisms.

Users can save data on a server, verify that it is stored, and then retrieve it, thanks to proof-of-reliability (PoR). A user can outsource storage space to a network server using proof-of-space (PoS), a kind of proof-of-capacity (PoC).

Many proof-of-space (PoS) systems let users display the availability of space for junk files. Proof of Replication (PoRep), as opposed to PoS, enables the user to store significant data in such places. Additionally, it makes efficient data retrieval possible. Proof of Replication (PoRep) incorporates Proof of Reliability (PoR) into Proof of Space (PoS). The combined technique has many advantages for decentralized storage networks and cloud computing.

It includes a one-time setup of security parameters. Then pre-processing of algorithms and data inputs happens. After processing data, the replication and extraction of data are done. Then the main part comes into the picture, data that is replicating a proof. After proof replication, the PoRep verifier outputs a decision to accept or reject a proof. Verifiers and provers use this procedure.

Running a proof of replication (PoRep) is almost always more expensive than running a proof-of-space (PoS). This is because of PoRep’s ability to access these files and store both useful and junk information. Fortunately, PoRep shares characteristics with other pricing models.

PoRep operates on arbitrary data; while doing so, it follows below significant steps:

• PoRep Set Up
• PoRep Preproc
• PoRep Replicate
• PoRep Extract
• PoRep Prove
• PoRep Poll
• PoRep Verify

The rising use of cloud computing and the increasing need for decentralized storage networks compels recipients to take the help of PoRep.

Let’s Walk into the Benefits of PoRep

The PoRep is dynamic, publicly verifiable, non-outsourceable, and transparent. In addition to supporting retrievability, it is also time-bounded. Here are some of the benefits –

Effective channel: PoRep creates an effective channel for the user to have a server to keep duplicate copies of data. At the same time, it prevents users from storing the same kind of file on different servers.

Prevent outsourcing: The PoRep was created to stop a miner from delegating responsibility for certain tasks to other miners. Because proof verification verifies a prover’s identity, a miner cannot claim ownership of another miner’s work.

Transparency: PoRep provides maximum transparency as they are publicly verifiable unless the data is private or surreptitiously generated data. It allows any party to have access to data with a validating key.

User-friendly: PoRep is highly user-friendly, enabling users to extract and update the stored data without restarting the protocol. Hence, specific steps are not required to obtain data. To avoid imposters, users show and prove full PoRep in a specified time.

Protection from alien attacks: PoRep is highly effective in the cloud and decentralized storage network systems. It assures the user that stored files have a replica and is independent of the original file in a realistic manner. It creates a unified decentralized storage network where users and servers are protected from outsourcing attacks, Sybil attacks, and generation attacks.

Publicly verifiable: A PoRep includes a one-time setup run by a trusted party or a committee that runs a multi-party computation (MPC) protocol to generate the public parameters. This transparent PoRep process does not possess any private information. This is a one-time, independent setup where a trusted party that runs that particular setup will no longer be involved in the interactive protocols. It is a trusted channel for publicly verifiable data replication security.

Other Kinds of Proof Vs. Proof of Replication

The PoRep is a powerful method to operate arbitrary or random data. Other schemes like PoS and PoRet have significance but do not completely fulfill users’ expectations. So, PoRep is an extended version of all schemes to hop with the replication, deduplication, Sybil identities, and networks.

The three challenges, namely Sybil Attack, Outsourcing Attack, and Generation Attack, are all related to replication. The ability to overcome these three challenges differentiates PoRep from other kinds of proofs.

To cope with the different attacks, we can create different strategies to construct proof-of-replication protocols. Some protocols may be trusted hardware; some may be time-bound protocols. Using time-bound PoRep and relying on local time from the verifiers’ perspective, we create the most suited decentralized storage network.

While making a PoRep strategy against Sybil attack, ensure that encoding is distinguishable and incompressible. While making a PoRep strategy against outsourcing and generation attacks, it is important to make sure that the prover does not get a replica just in time. It is the time between receiving the challenge and producing the proof.

Wrapping Up

The development of blockchain is very much needed at this point in time. As the technology is widening its branches all over the way, transparent, concise, more user-friendly, and trustful decentralized solutions are needed to have more reliability to opt over traditional centralized financial solutions.

• A crypto wallet is essentially an application that serves the purpose of a wallet for your cryptocurrency.
• When selecting a storage solution for your cryptocurrency, you should assess your risk tolerance, ambitions, and level of crypto understanding.

The one essential accessory that’s carried by everyone – no matter where they go – is a wallet. In today’s day and age, all personal information about payments and passwords et al, are saved in digital wallets. But when it comes to cryptocurrency, what does a wallet mean? In plain terms, it’s used as a gateway to a blockchain network. Essentially, cryptocurrencies are not saved in these wallets; they just interact with a blockchain.

This blog will explore crypto wallets, their function, and their significance in authentication. Let’s start with the basics first.

What Is a Crypto Wallet?

A crypto wallet is essentially an application that serves the purpose of a wallet for your cryptocurrency. It is termed a wallet because it is used in a manner comparable to that of a wallet, where one places cash or credit cards.

But unlike paper currencies that can be placed in a wallet or purse, with cryptocurrency, there’s no tangible currency. It exists on the blockchain. Moreover, it cannot be touched as there’s no physical manifestation. But just as a bank shows an account balance, people need to know how about the ownership of cryptocurrency assets.

This is where the crypto wallet pops in. It offers users a way to confirm account balances and offer visibility into the cryptocurrency owned by users. A cryptocurrency wallet also allows users to make cryptocurrency transactions. The approach is much like transactions that happen in a traditional bank account. A crypto wallet is a primary mechanism to manage cryptocurrency balances.

Why Do You Need Crypto Wallets?

Much like any given currency, cryptocurrency can be collected and used for various purposes and transactions. Just as a bank account forms the foundation for fiat currency, crypto wallets play a crucial role in ensuring the cryptocurrency is useful for individuals and organizations.

There are many uses of crypto wallets, and they help enable the practical utility of cryptocurrency. Some of the other reasons why crypto wallets are essential are:

• Cryptocurrency management: With crypto wallets, users can monitor the balance of cryptocurrency assets.
• Transactions: One of the primary reasons why crypto wallets are needed is because they facilitate sending and receiving cryptocurrency payments.
• Connection to decentralized apps: In a bid to connect and interact with Web 3.0 dApps, it’s essential to have a crypto wallet.
• Username identities: As mentioned earlier, cryptocurrencies are stored on a blockchain. A crypto wallet facilitates the completion of transactions with a username that can be linked with a public key address on a blockchain.

How To Use a Crypto Wallet

What do you own when you purchase a currency, say Bitcoin? You own two things: One, your wallet address, also known as the public key, and second a private key. The keys can be used to send or receive cryptocurrency while still warranting the encryption of your private key.

A public key is more or less like a bank account number. Here, the number can be shared with others to send or receive money from your account with authorization. Public keys are generally viewed as a wallet address — a hashed or compressed version of that public key. On the other hand, a private key is much like your bank account password or the PIN to your debit card.

But crypto, which is purely a digital currency, is not held directly into the wallet. Here, all crucial information – about your public and private keys that amount to your ownership stake of the crypto – is held within the wallet stores.

Encrypted cipher text can be created using the public key, and only a private key can decrypt it. The pair of keys can also be used to sign data, thus establishing the fact that the sender holds the private keys. While private keys allow for accessing confidential information, public keys facilitate its creation.

In the case of blockchain, anyone can send data to a public location, but only the holder of the private keys for that specific location can access it. Even blockchain addresses are cryptographic entities. They are built in tandem with a public key. Such addresses hold sensitive information and can be accessed only with the private key that created the address.

The benefit of this arrangement is that users require a secure method to store their private and public keys for the blockchain. Wallets ensure this by providing chain interaction via private keys. The wallet itself is password protected. The wallet also controls users’ public keys, allowing them to accept transactions. Consequently, the crypto wallet keys are quite important.

In the case of a physical wallet, funds can be accessed via fiat currency, bank or credit cards. But in the case of a crypto wallet, there’s no actual cryptocurrency that’s held up. Instead, it holds classified credentials needed in the form of private keys to gain access to the blockchain for a said cryptocurrency.

In the case of traditional banks, bank accounts with account numbers are created in the user’s name. But with a cryptocurrency blockchain, the public key serves the same purpose as a bank account number. But to make a complete set of transactions with an account, it’s not just enough to have a bank account number or a public key.

Blockchain functions on a public key infrastructure model for cryptography – you have a public key, and a private key and only the users who hold an asset or cryptocurrency know about it. It’s essential to have both a public key and a private key to access and transfer cryptocurrency.

Crypto wallets hold users’ private keys and information where the public keys are located on the blockchain. With the combination of public and private keys, a crypto wallet can enable a secured operation to validate a balance and send or receive cryptocurrency transactions.

When selecting a storage solution for your cryptocurrency, you should assess your risk tolerance, ambitions, and level of crypto understanding. Cold storage may make sense if you want to store your coins long-term and have no trading plans. However, if you are a newbie and normally cautious with your investments, you may prefer the ease of purchasing and storing your coins within the exchange.

Wrapping it up

Your crypto wallet is your everything – it allows you to check your balance, make transactions, and connect to decentralized applications. There are other wallets as well that use a single application to manage several accounts. To be true, wallets do not hold the custody of your funds; it’s you.  Wallets just allow you to manage what’s yours.

• Blockchain is the most secure data integrity, decentralization, and verifiability technology. However, blockchain security issues remain.
• Awareness of blockchain security issues is necessary to develop superior networks and systems.

In recent years, blockchain technology has gained immense popularity as it holds the potential to transform the security tenets in financial transactions and information exchange. The technology offers various advantages, particularly cryptographic security, even as issues remain.  Blockchain banks on the principles of consensus, decentralization, and cryptography to ensure trust in transactions.  However, despite the security enhancement, blockchain security issues remain and differ in some critical security aspects.

Where there’s money, hackers exist too, and blockchain networks are thriving both.  Blockchain-based attacks can come from outside and inside as well.  For many of these hacks, common tactics are used, including phishing, routing attacks, Sybil attacks, social engineering, attacking data in transit or targeting coding mistakes.

This blog delves into the specifics of blockchain security and privacy and offers mitigation strategies for security issues.

Blockchain is essential now more than ever

With the next wave of digital transformation kicking in, the world wants to dive into it fast.  This is especially true with blockchain technology.  One reason why blockchain technology has been able to garner significant attention is because of its one-of-a-kind capabilities.  It’s also acceptable with different use cases.  The blockchain protocol has emerged as a reliable approach to introducing enhanced security and transparency in technological solutions.  To get a better understanding, let’s first discuss what blockchain is all about.

The storing of various pieces of digital information, also known as blocks, inside a public database is essentially blockchain technology.  These blocks of data are connected via cryptographically secure links between them.  What has made blockchain popular is its propensity to limit “double spending.” In addition, using the same currency for two separate transactions is not something that can be done using blockchain.

Before discussing the vulnerabilities, let’s look at a blockchain’s components.  Each block includes three essential bits of information, which are as follows:

• Information regarding transactions, including the date, amount, and time of the purchase.
• A one-of-a-kind mathematical hash or code that differentiates each block.
• The names and contact information for each of the parties involved in the transaction.

New blocks can be added to a blockchain for new transactions subsequently. After the validation of a new transaction, a unique identifying code is sent.

How security differs by blockchain types

Who may join a blockchain network and who has access to its data might vary.  At first, there are two types of networks, public and private.

Public blockchain networks: Public blockchain networks permit any user to join while allowing them to maintain anonymity.  It makes use of internet-connected computers to validate transactions and reach consensus.  Bitcoin is a well-known example of a public blockchain, and its name is familiar to everyone.  It achieves consensus via “blockchain mining.”

Private ledger networks: Private blockchain networks rely on identification to confirm membership and access privileges.  Additionally, only recognized organizations are permitted to join.  A private blockchain network reaches an agreement using a procedure known as “selective endorsement,” in which known users validate the transactions.  This sort of network requires increased authentication and access constraints.

How secure is blockchain

With cryptographic security and the commitment that the data cannot be modified without the consent of other participants, blockchain appears to be secure.  This form of technology can also provide you with proof of account transactions.

But this does not mean that blockchain is not susceptible to cyber-attacks or fraud.  Hackers can still exploit security vulnerabilities to gain an advantage.  Many such examples of blockchain attacks have made headlines from time to time.  Let’s look at some of the top blockchain security vulnerabilities in 2022.

Blockchain security issues in 2022

It is widely believed that blockchain is intrinsically safe, and this conclusion is not incorrect. Nevertheless, blockchain has some security limitations. Let’s examine some of the greatest dangers to blockchain security in 2022.

51% Attacks: Miners play a crucial role in verifying transactions on the blockchain. A 51% attack is, perhaps, the most dreaded in the blockchain industry. This type of attack is an assault on a blockchain by a group of miners who control more than 50% of the network’s mining hash rate. Most likely, such attacks happen early in the chain and do not apply to enterprise or private blockchains. Such people also seize control of the entire system. The order of the transactions can be modified by hackers, preventing them from being confirmed.

To prevent the attacks, follow the below:

• Improve mining pool monitoring
• Ensure a greater hash rate
• Avoid employing proof-of-work (PoW) consensus techniques

Routing Attacks: Routing attacks are yet another prominent concern for blockchain security and privacy issues.  Blockchain networks and applications rely on the real-time movement of vast amounts of data.  An attacker can leverage the anonymity of an account to intercept data being transferred to internet service providers.

Typically, participants in a blockchain are unaware of these types of attacks because data transfer and activities continue as usual.  In addition, routing attacks disclose private information or steal funds without the victim’s knowledge.

To prevent routing attacks:

• Implement safe routing protocols
• Make use of data encryption
• Alter passwords often and employ robust passwords
• Inform yourself and your personnel of the risks connected with information security

Phishing attacks: These attacks are growing on blockchain networks every passing day, leading to serious issues.  Generally, phishing attacks target individuals or company employees.

The goal of the hacker is to steal the credentials of users.  To achieve this, users send emails to the owner of the wallet key that appears to be legitimate.  The user needs to fill in the login details through a fake hyperlink.  With users’ credentials and other sensitive information being shared, it may result in damages for both the user and the blockchain network.

To prevent phishing attacks:

• Install a verified add-on to enhance browser security that will send notifications about unsafe websites.
• Install malicious link detection software and dependable antivirus software to enhance device security.
• Do not click on the link until it has been reviewed.
• Always keep your system and software updated.

Transaction Privacy Leakage: Transaction privacy leakage is another addition to existing blockchain security issues in 2022.

On blockchain networks, user activity is very much traceable.  The dissemination of network data keeps information synced and enables remote nodes to establish consensus.  Therefore, blockchain systems must protect the privacy of users’ transactions.

To prevent transaction privacy leakage:

• Provide users with a private key for every transaction
• Introduce mixins to limit the capabilities of hackers. Under mixing services, many users conduct simultaneous transactions with numerous inputs and outputs. Thus, transaction inputs and outputs cannot be connected.

Bottom line

The security issues discussed in this blog clearly show the complexity of blockchain security.  Awareness of blockchain security issues is necessary to develop superior networks and systems.  Additionally, technological improvements such as the development of AI solutions for infrastructure, transaction, and code analysis might result in new blockchain security trends.

• NFTs are becoming a significant part of the digital landscape because they provide marketers with innovative ways to interact with their users and offer them engaging experiences.
• With a well-executed plan, marketers can use NFT efficiently to reach their target audience, increase brand awareness, and promote/sell new products.

With the dawn of the digital age, brands want to increase their online presence and invest in top-notch digital marketing strategies. But while designing and executing a digital marketing strategy, it’s essential to keep up with the latest developments. There’s nothing like it when brands can use these advances to their benefit!

In this digital age, owning a virtual item brings with it high satisfaction levels, somewhat similar to its tangible counterparts. The most sought-after are those digital items that are one of a kind, like NFTs – Non-Fungible Tokens – a buzzword that has taken the world by storm.

But what’s all the hullabaloo about NFTs? All we know is that they’re simply intriguing and offer numerous opportunities for digital marketing even though the future of this technology is not clear. Let’s dive in to know interesting facts about NFTs in this blog.

What are NFTs?

In simple terms, NFTs are non-interchangeable digital assets, with each one of them having its characteristics. One NFT can be worth more than another because of its artistic significance and rarity.

Like any physical asset, these digital assets can be bought and sold. The token is encoded with a unique code, which makes each NFT unique. The token becomes the digital certificate of ownership.

NFTs represent music, art, videos, and in-game items. For example, a music-related NFT can be a high-end version of a new album that grants lifetime front-row concert tickets. A gaming-related NFT could mean purchasing the rights to an in-game digital character. Since the NFTs are created, minted, and uploaded like cryptocurrency to the blockchain, there is more authenticity than traditional digital items.

How is NFT related to digital marketing?

While it’s too early to gauge the effect of NFTs on businesses, they are fast becoming a significant part of the digital landscape because marketers, brands, and even sales departments can verify authenticity by establishing unique identifiers for each token.

Businesses can track products throughout the supply chain and collect customer data securely and transparently. Plus, customers can use NFTs as loyalty rewards or discounts.

They provide marketers with innovative ways to interact with their users and offer them engaging experiences.

Furthermore, these digital assets can help increase the users’ loyalty and even reward them for participating in the campaigns.

Here are a few advantages of NFTs that can help companies serve their clients better:

Advantages of using NFTs for digital marketing

• To create a multi-faceted digital consumer connection: While the world is abuzz about the metaverse and digital assets, it won’t be long before NFTs might be the primary digital touchpoint between customers and businesses. Marketing with NFTs can be the best because it encourages the users to participate in events, exchanges, and campaigns, rather than just receiving them passively without doing anything.
• Enhances brand identity: Not every brand in the business would want to generate or sell art in the long run. Hence, it’s important to link an NFT collection with the brand identity. As Web3 technology is growing gradually, brands can still start to connect products and services to NFT in small ways. For example, it’s possible to flip the idea of an NFT as a digital token that shows that you own a physical product by linking that item to a digital NFT collectible.
• Can help in pre-orders: It can be a good idea for brands to use NFTs to create public interest and boost pre-orders. Businesses can use NFTs to track products throughout the supply chain and collect customer data securely and transparently.
• Aids in customer engagement: NFTs can help companies identify their loyal customer base – which won’t stop talking about them and believe in what the brand stands for. Firms can also create more meaningful relationships through various engagement strategies. Once the connection is made, customers are ready to pay for premium products and exclusive experiences concerning the brand.
• Grow community: The world is slowly moving toward a cookie-less internet, making it difficult for marketers to track and advertise the way we have over the last five years. As data privacy laws become stricter, digital marketers will have to remove cookies and create first-party customer data. This will be most useful for the most premium and loyal customers. NFTs provide brands with the opportunity of building a new email list for a private and decentralized Web 3.0. NFTs have become more critical in the virtual environment of the emerging metaverse world. Brands will be  able to recognize their user without revealing their real-world identity. Even though a brand’s NFT may have been allocated as a reward or is sold to enable unique experiences, brands can get the additional benefit of  being able to personalize for their customers. This is why NFTs will be an essential aspect of the VR  experience.
• Support a worthy cause: Brands are taking a more public-spirited approach and finding ways to support causes they care about. It shows customers that a brand not only provides good products but also cares about giving back to the community.

For example, a brand launches an NFT collection with a 3D artwork showcasing a conservation issue. The company then declares that for every NFT sold, it would sponsor a specific amount for conservation efforts. The company may even give proof of contribution stickers or certificates that the contributors can display on their social media pages. This can get the company extra publicity, and at the same time, it can create an emotional engagement with its customer base.

Ways to Use NFT

The concept of NFTs might look complex but let’s get some inspiration from the ways brands can use NFTs:

• Digital loyalty card: A loyalty card can be a great idea to keep the customers hooked to a particular brand. Users can download the loyalty NFT card on their phones when they sign up. They can simply scan the NFT code to earn loyalty points whenever they purchase from the brand. The user can also enjoy benefits like discounts, rewards, or tokens that they can use for in-store purchases.
• Promotional discounts: Brands may offer coupons, BOGO deals, event tickets, or promotional discounts issued with counterfeit-proof features. It’s impossible to duplicate or tamper with blockchain and QR codes, ensuring the guarantee.
• Collectibles: Brands can create digital collectibles with the help of NFTs. For example, a TV show/movie franchise can make an NFT for a character for its fans.

To sum it all up…

Few people might truly understand what NFT really is, but there’s a massive surge in interest. Also, NFT strategies are not for attracting attention for a fleeting moment but are helpful for long-term growth. With a well-executed plan, marketers can use NFT efficiently to reach their target audience, increase brand awareness, and promote/sell new products.

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The global market for blockchain identity management is expected to reach USD 11.46 billion by 2026, registering a CAGR of 79.2% from 2019 to 2026.

Let’s discuss how blockchain can be used in digital identity management in detail. We will also explain the importance of this technology in ensuring privacy, security, and trust.

Why blockchain?

Satoshi Nakamoto was the person who introduced blockchain technology to solve a double-spending problem of digital currency and to act as a ledger, a registry, of the transactions of Bitcoin. Every person who performs bitcoins transactions acts as a node in the network, forming a transaction on the Bitcoin blockchain. This makes it decentralized as no central authority is needed, and each person present in the network can access the ledger. It also allows for consensus in the network without the need for a middle-man. As the blockchain network grows, it adds a new record in chronological order, each one connected to the next. The blocks are connected in an unbroken manner, hence the name blockchain. It can also store any form of data in applications, such as digital voting systems or identity management.

What is digital identity management?

Digital Identity Management (DIM) keeps track of an individual’s uniqueness, reflecting his/her actuality. It can be broadly defined as a method that identifies and authenticates a subject/user in both online and offline systems, thus handling the digital representation of identity that is traditionally dependent on a centralized authority.

With digital identity management, it is possible to perform trustless interaction between users and the decentralized platform on which they operate. This helps build an auditable trail that can be used in legal or regulatory proceedings in case fraud or other crimes are detected at a later stage.

Digital identity management helps overcome many problems faced by centralized authorities. Problems include high transaction costs because of the slow processing times, dependency on third party processors whose interests do not always coincide with those of the customers, as well as some outright fraudulent transactions that can get better solutions.

Role of blockchain in digital identity management

Blockchain is turning out to be an ideal solution for the inefficiencies in identity management. It is one of the three pillars of a self-sovereign identity that are Verifiable Credentials, Decentralized Identifiers, and Distributed Ledger Technology, correspondingly. All these factors help find a solution for all the upcoming issues and a positive, global answer.

• Verifiable credentials 

This protocol allows users to manage their own digital identities and allows them to put their reputation ahead across systems/networks. It also replaces passwords as a proof of identity method with cryptographic signatures developed from asymmetric keys derived from user entropy such as voice samples and fingerprint scans.

Verifiable credentials protocol allow users to choose an endorsement key that helps build up a profile for that identity on each system. There is no need to maintain multiple profiles for different social networks – a single profile across all platforms is enough.

• Decentralized identifiers

Decentralized identifiers are considered unique and personal identifiers where identity owners hold a complete charge. Such a protocol allows for a public method of unique ID/address resolution. Also, it is independent of any centralized authorities and identity providers.

• Blockchain

Blockchain technology enables decentralized consent via time-stamped transaction blockchains. At its most basic, it allows users to agree on when transactions occurred and guarantees that all parties follow through on their commitments.

How can blockchain help solve identity management issues?

Blockchain can very well solve the issues related to identity management. Particularly, it can help solve inefficiencies in the following ways –

• Offer identity synchronization
• Eliminate redundancy issues
• Eliminate identity Sybil-ing
• Provide proof-of-existence
• Provide individual control to users

Let’s elaborate on these points –

• Identity synchronization

Identity synchronization is a core feature of blockchain. It enables users to show their identity across multiple systems without passwords, thus eliminating account hacks and collisions.cIf one wishes to control their private keys, the service provider no longer owns a user’s identity. Instead, it is of the users alone. Implementing this system is a convenient way to manage multiple profiles across different social networks.

• Issues in redundancy

Blockchain makes it possible for digital objects to be checked against previous versions of themselves. As a result, there will be no confusion about who owns the digital objects as all the changes can be easily tracked back to their first user. It helps to find a better and ideal solution for non-rejected time-stamping.

• Identity sybil-ing

The aforementioned Verifiable Credentials Protocol can also be implemented with the result that there is no incentive for users to create multiple identities. Furthermore, a reputation system can be set up in which the identity’s previous endorsements are noted on each future endorsement. So, as long as the initial reputation gets established (say by accomplishing security chores), all subsequent activities will be irrevocably stamped with the individual’s identity. One way to think about this is to consider each transaction confirmation equivalent to the verification supplied by a fingerprint or iris scan.

• Proof of existence

Blockchain provides an immutable public ledger for non-repudiable time-stamping. One would say that this was always possible to do this via blockchain from the very beginning. But for the current process to continue, it would require resources that are currently impractical to maintain.

Blockchain provides proof of existence by storing a transaction that is connected to the hash of a related document. This provides non-repudiation, which can be further enhanced by including a digital signature produced with the originator’s private key.

A non-repudiable record of existence can turn out to be a useful tool for notarization purposes. This helps to provide the following advantages over existing solutions:

• • It is permanent – It is not possible to change the blockchain transaction and digital signature retroactively.
  • It is public – It is important to use a private key that is secured and is not known to anyone as anybody can view the proof to verify its validity.
  • Centralized control – The blockchain transaction with document hash can be written for any purpose in other contracts or for authorities who require further action from the private key owner.

• Individual control

With the rise of blockchain, it is possible to claim individual control over one’s identity and reputation. There is no need to support central authorities who may censor, sell, or lose personal information. Users now have a better option where they can decentralize entities where individuals truly matter.

Take away

Blockchain technology is applicable to several identity applications. Several companies can easily deploy blockchain to build trust among their users. Blockchain also facilitates companies to instantly make, approve, and verify various types of transactions after leveraging a collaborative digital ledger. Once transactions or other data are entered into the blockchain’s ledger, encryption takes control, and existing verification hurdles are greatly reduced, with the possibility of data theft eliminated.

Undoubtedly, blockchain technologies are intriguing and inventive. They have the potential to be beneficial in various applications, including the establishment of evidence chains for identity verification and the creation of smart contracts. As a result, blockchain unquestionably has a positive impact on and safeguards digital identities.

Through the internet, the Bitcoin ATMs and bank accounts are linked to each other and connect users to bitcoin exchange. According to some machines, it is essential to have a bank account before carrying out any transaction.

It was in 2013 that the first Bitcoin machine was introduced. Since then, the installation of more than 3,000 machines took place all over the world.

Advantages of implementing Bitcoin ATMs for businesses

As the usage of Bitcoin and other cryptocurrencies began to increase day-by-day, many businesses are finding ways to enter into the crypto world. Some businesses have even started accepting Bitcoin as a form of currency to purchase any of their items. While some companies have developed their signature coins to help raise funds, also known as initial coin offerings (ICOs).

Bitcoin ATM is just another way businesses can enter the crypto world without creating their own signature coin.

• Be different

Many businesses are already offering customers a traditional cash ATM. Expanding business reach by offering Bitcoin ATMs lets companies give a different or a newer experience to their customers and help to remain at the forefront of the competition.

In today’s competitive world, it’s the best way for a business looking forward to differentiating itself, and facilitating with Bitcoin ATMs is a diligent way to achieve that.

• Builds better business for future

Bitcoin and cryptocurrency have become a major part of the financial world. Bitcoin will continue to move in an upward direction in a never-ending phase. Companies that have already joined in the trend will, for sure, witness the benefits in the future.

Activating Bitcoin ATM facilities helps businesses stand as reputable brands aware of the future and are rolling out schemes to stay ahead for what is to come.

• Brings more traffic

Business owners implement various methods to attract more traffic to their site. As the demand for Bitcoin is increasing day-by-day, consumers are continuously looking for convenient ways to buy or sell Bitcoin.

To overcome the slow verification speed that occurs during online exchanges and to trade using cash, many customers are moving toward Bitcoin ATMs as their convenient way of buying and selling Bitcoin. Also, hosting a Bitcoin ATM increases the chance of a new customer coming to the shop who may have never visited in the first place.

• Generates more revenue

Providing Bitcoin ATM facilities will help businesses generate more money. It all depends on which method a company chooses to host a Bitcoin ATM.

Basically, there are two different ways in which a company generates revenue – first is to own and operate its own machine, where the company will earn money via the transaction fee. It is recommended to partner with a company that already has the infrastructure in place to install an ATM in the location.

The second way is to work in collaboration with Bitcoin ATM companies like Coin Cloud. Coin Cloud works by paying businesses that host an ATM a monthly fee for the space used. Also, as an addition to the payment, the hosting businesses will be assigned a point-person to keep track of the services if anything goes wrong.

Headquartered in Las Vegas, Nevada, Coin Cloud is a Bitcoin ATM company with over 627 locations nationwide. Coin Cloud started providing its services in 2014 and boasted one of the largest and fastest-growing networks of two-way Bitcoin ATMs in the world. Its network has helped more than 144,000 customers buy and sell cryptocurrency around the globe.

• Reduces cash handling cost

Most of the transactions in a Bitcoin ATM are carried out by customers by depositing cash to buy bitcoin. Businesses can take advantage of it by withdrawing the bitcoin machine’s cash and depositing it in the cash ATM. This action reduces the cost of handling cash for businesses.

• Cross-marketing

Installing Bitcoin ATMs promotes cross-marketing. If a company is operating an ATM serving thousands of customers around the area, there are chances that many of them will use the ATM at least once a month.

At times, many of them would have heard about cryptocurrency at one point, or the other, and might have given a thought of owning some. But they couldn’t do so as the process of signing up on an exchange may have seemed quite complicated. Some lack the knowledge of which platform to trust, due to which they just back away. Gaining adequate knowledge of Bitcoin ATMs, one can turn the fantasy of owning bitcoin into a reality.

• Setup is cost-effective

Suppose an ATM business owner has already made arrangements for a store or outlet with a lot of visibility and foot traffic. In that case, it can tremendously help to reduce the setup cost of hosting a Bitcoin ATM.

It holds all the necessary things needed for the bitcoin ATM business to function correctly. This will even ease a professional’s work to set up a bitcoin ATM compared to an individual looking to start a standalone outlet.

Bottom line

There are plenty of reasons to participate in the cryptocurrency economy, but there are reasons not to as well—the reason being – ATMs store money. The companies need to ensure that online business is safe and transaction space remains both visible and secure.

Nobody knows what the future holds. To stay updated and keep up with the cryptocurrency world, implementing Blockchain technology via Bitcoin ATMs can be the best solution.

If all the terms run securely, there’s nothing that can prevent the companies from making more money through the Bitcoin ATM business. The companies or organizations that wish to start working on Bitcoin ATMs need to first understand and gain knowledge about it. Our next blog will help to find answers to all the questions about the same for all the potential users.

To read more on Bitcoin in cryptocurrency and Blockchain technology, visit our latest whitepapers on blockchain technolgoy.