The user controls how much data they share and the business has peace of mind that the data is immutable.
Shocard is one company planning to achieve this is. Shocard allows anyone to scan an identification document, such as a license, and then digitally sign it. That information is then attached to a new private and public key, encrypted, hashed onto the blockchain, and then distributed across all the nodes. The identity, at this stage, now lives on the blockchain.
When you want to prove that you are the person you say you are, you utilize the Shocard application to pull the necessary information. If you take it a step farther, you can attach this sort of digital identity to a credit card, allowing you to approve every purchase that is made; if you didn’t make the purchase, the card gets declined.
Onename is another company looking to tackle identity on the blockchain. The company hopes that, with its Passcard product, you will be able to use a digital key for everything: your apartment, your office, and logins to different websites.
Consider that a username/password is only used to verify that you should have access to the information associated with that account. If a digital ID could do the same thing, a password becomes unnecessary.
Storing identification on the blockchain is in its infancy. But while finance remains one of the primary focuses, the rules that make the blockchain so powerful apply to many other industries. Once information is on the blockchain, it cannot be changed or counterfeited. Further, because no one entity controls the blockchain, each user controls his own data.