If you’ve done business in the digital environment lately, you’ve likely heard about digital ID. The claim is that it’s a secure way for people to prove their identity online without presenting physical documents every time.
It’s being used in both the public sector and business-to-consumer online interactions to ensure transactions run faster and are more secure. In the process, it saves considerable amounts of money and time.
Wondering what digital IDs are and how they work? Here’s everything you need to know.
What is digital identity and why is it so crucial?
In simple terms, digital identity is a digitized representation of information that identifies you, like your name and age. It’s an easy way to verify your identity online, but safely.
An ideal digital ID should act as an extension of other physical documents you’d otherwise use to prove your identities, such as a passport or driver’s license.
Other than your name, it can contain personally identifiable information (PII), including:
- Biometric data
- Social security number
- Passport number
- Date of birth
- Login credentials
- Bank account number
Of course, not all this information would be accessible to external parties; you get to limit any personal details you share to only what’s absolutely necessary or to just what is requested.
Why use a digital ID
As it stands, there are a few primary ways of proving your identity – this would mainly be by presenting identifying documents issued by authentic bodies, like government-issued ID cards or passports. But as credible as these forms are, they are prone to get lost or counterfeited. They are also not designed to store associated data, which reduces their utility in an electronic economy.
Digital IDs come in here. Think of a trusted, verifiable, and authentic digital document that could unlock private or public services requiring your physical ID, like financial services.
Digital identity checks would also offer credibility to online transactions. Using it is a very convenient and secure way of obtaining online services.
The future of digital identity
As the world becomes more and more digitized, people are gradually reducing the essential documents they usually carry on their person before heading out. Eventually, we won’t need national IDs or driver’s licenses. Your digital ID would validate your identity in both the physical and digital domains.
Ultimately digital IDs would be used by websites, banks, or even government entities to prove your identity via an identity verification process. Digital identity security would eliminate identity theft as we know it. Companies would fully trust that the individual they are interacting with has undergone valid identity checks and is who they say they are.
At the same time, as technology becomes more sophisticated, identity authentication advances. You can expect digital identity verification to incorporate biometric identifiers like voice or facial recognition, adding a layer of security to digital IDs.
Digital ID challenges
Digital ID adoption is challenged by making it bulletproof for privacy and security. Before technology can be widely accepted, digital identity systems will need to be tried and tested and proven trustworthy.
Trusted brands, including the government, would need to endorse it and eliminate worries, plus it should offer a flawless user experience. There would also be a need for legislation surrounding electronic rights, standards, and a governance structure surrounding digital identities.
The United Kingdom government, for instance, has the UK Digital Identity and Attributes Trust Framework. This framework sets rules for how digital identities will be used in the future.
It’s critical to note that we currently have digitizable verification solutions, such as biometric identities, that are vastly more secure than traditional username and password methods. Such technologies can offer a secure way for users to verify and validate digital identities, eliminating doubt.
Opportunities for digital ID
If widely accepted and implemented, Digital IDs would provide a wide range of opportunities. Not only would users have better control over their personal information, but Digital ID could also be used across multiple platforms and devices at any time.
It could serve as your digital wallet or biometric passport that enhances cybersecurity. At the same time, it can add economic value by offering a consistent experience for all users or citizens in any one economy. This is especially when accessing government services like the DBS application.
Of course, the whole concept is still in its introductory stages. A lot needs to be done before it can be understood or accepted by the mainstream.
Also, most governments, the United Kingdom included, don’t plan to make digital identity use compulsory. This will take some time to get noticed by the masses.
However, provided with the right implementation and mass education, there are no limits to the benefits it can add to the economy as a whole.
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