Fujitsu Laboratories Ltd. has come up with a fascinating and critical method to authenticate the identity of the user conducting digital transactions. Interestingly, the technology goes much beyond users’ authentication and verification. The Japanese company claims its digital identity exchange technology that uses blockchain, significantly helps in building the trust of the frequent user and helps in platforms have a better flow of transactions. Fujitsu assures its platform makes it easy for individual users and service businesses to reliably authenticate the identity of parties involved in the transactions. This not only boosts confidence but weeds out chances of fraud from either party in the transaction.
Online transactions involving money and even other data have long relied on the blockchain technology. However, the majority of the technology is still dedicated to keeping a close watch on the flow of digital transactions or the data itself. Fujitsu Laboratories Ltd. appears to have dedicated its resources to authenticate the identity of users and platforms that are involved in the transactions. Needless to add, if both the transaction and the parties are verified, it would significantly boost mutual trust. The average user would be confident that he is entering the correct and legitimate platform to conduct the transaction. Meanwhile, businesses would be able to reliably work with verified and legitimate users. Additionally, Fujitsu is relying on blockchain to prove reputation and improve trust while validating a user. In simple words, this means returning or regular customers could potentially get better treatment as the system would trust them by automatically establishing their authenticity and legitimacy.
How Does Fujitsu’s Blockchain Dependent Digital Identity Exchange Technology Work?
Fujitsu’s Blockchain-dependent Digital Identity Exchange Technology is based on Decentralized Identification (DID). Essentially DID is a system in which a third party guarantees the accuracy of a given individual’s identity and personal credentials. The system relies on blockchain and the features of the peer-registered network that cannot be tampered with. Using blockchain technology, Fujitsu looks for patterns and calculates the probability or risk of falsification. On the other end of the spectrum, a regular user can significantly improve his or her “trustworthiness”. This can happen because the users’ authentication credentials can be repeatedly verified whenever they execute an online transaction.
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As it is commonly known, Blockchain relies on data that is securely distributed among many users. Fujitsu’s tech goes through a mutual evaluation of the users when a transaction occurs. By inferring the relationships between users based on past transaction data, the company can validate it is the same user. “Fujitsu’s new digital identity exchange technology promises a future in which people can enjoy online services more safely, offering user-friendly features including graphics to visualize the relationships between users, as well as a unique ‘trust score’ that make it easier to determine each user’s trustworthiness before starting a transaction,” mentioned Fujitsu.
Fujitsu’s Blockchain Dependent Digital Identity Exchange Technology Improves User Trustworthiness:
All transactions conducted by a user with an online platform are anyways recorded, mostly in perpetuity. Incidentally, the records do not contain the actual identity of the user. These records only record certain aspects that are needed for authentication and verification purposes. Fujitsu’s Digital Identity Exchange technology stores the users’ transactions as a series of transaction data in blockchain format. This significantly boosts the usefulness of the same.
In addition to offering a much more reliable way to authenticate a user, the technology can also offer a treasure of reliable insights into patterns of user activity on the platform. As an extension, the data should serve to establish, and over a series of transactions, boost the trustworthiness of users. Fujitsu’s tech converts the transaction data about individuals shared on the blockchain into a graph structure. This offers, at a quick glance, a trustworthiness score. The score, of course, is calculated after taking into account several factors of the users’ transactions.
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One of the additional primary advantages about Fujitsu’s blockchain-dependent system is that it virtually eliminates any possibility of artificially altering or boosting the score, noted the company, “Even if a user colludes with a third party to improperly raise their evaluation, the graph-structured relationships will reveal information such as the weakness of their relationships with other users, giving the system the potential to identify misrepresentations.”
Does Fujitsu’s Blockchain Dependent Digital Identity Exchange Technology Violate User Privacy?
User authentication and validation system that Fujitsu has developed could force ordinary internet users to suspect the platform could violate user privacy. Interestingly, Fujitsu’s system doesn’t reveal the actual identity. It merely claims to authenticate users in an attempt to stop fraud and misuse. Incidentally, the company has issued an infographic demonstrating the concept behind their technology. Blockchains usually contain specific data markers meant to cross-verify and maintain the authenticity of the information, and maintain a peer-shared ledger. This establishes authenticity without revealing true identity.
To further eliminate any doubt about user privacy, Fujitsu clarified, “Users can have their credentials verified with only a partial disclosure of relevant data, allowing for safe and highly-reliable transactions without forcing users to offer unnecessary personal details.” Moreover, the company assures that it is continuing to develop a digital identity exchange technology as a “trust-based service platform”. Since the finance industry is always in dire need of technology that reliably authenticates users, Fujitsu will begin its field trails in this segment.
Via Coindesk: Fujitsu Develops Blockchain ID Tech That Scores Trustworthiness in Transactions Fujitsu Laboratories has unveiled digital identity tech that scores users' reliability to increase the security of online transactions. https://t.co/BG0qGF3p7o pic.twitter.com/qru2dj1Pur
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When Will Fujitsu’s Blockchain Dependent Digital Identity Exchange Technology Debut?
Fujitsu noted it intends to implement this technology during the current year itself. The company plans to debut the tech as new functionality in its Fujitsu Intelligent Data Service Virtuora DX Data Distribution and Utilization Service. The platform is already built using blockchain, and hence the integration of the new Digital Identity Exchange system shouldn’t be a big challenge. Incidentally, Virtuora is a cloud-based solution for data utilization.
Given the nature and intention of Fujitsu’s blockchain-dependent Digital Identity Exchange technology, it would surely need to further fine-tune to ensure users are authenticated with minimal exposure of personal data. Incidentally, blockchain technology does already offer such features. Hence it would be interesting to see the actual implementation of Fujitsu’s in the near future.