AtalaPRISM What Is Decentralized Identity

Download as pdf or txt
Download as pdf or txt
You are on page 1of 9

What is

decentralized
identity?

Presented by
Atala PRISM | What is decentralized identity? Presented by Input Output

Contents What problem is 3


decentralized identity
solving?

What is the opportunity 4


that decentralized
identity presents?

How does it work? 6

What are the actual benefits 7


of decentralized identity?

Why is the Atala PRISM 8


digital identity solution
the best out there?

Contact us 9

2
Atala PRISM | What is decentralized identity? Presented by Input Output

What problem is
decentralized identity
solving?

Consumer Enterprise Government


Our identity is at the core of everything we do, and it’s Businesses often collect and store sensitive customer Traditionally, identity information is stored in centralized
increasingly becoming more digitalized. information to better understand target segments and databases (government, federal agencies, civil registries,
improve products accordingly. etc.) Multiple government agencies might hold multiple
Our lives are now more connected than ever, and digital databases with information pertaining to the same citizen,
services are exploding globally. Companies are forced to invest heavily in data protection, with siloed repositories between ministries compounding
and compliance with existing data privacy regulations the problem of authentication, as citizens have to be
But around 1.1 billion people around the world lack proof such as GDPR. verified again and again within the same government
of identity, leading to social and financial exclusion. environment.
The consequences of not having ‘provable’ identity Customer’s trust is eroded. Businesses sometimes have to
are severe. People might not be able to access higher compromise the user experience to provide sufficient All these centralized databases are inherently vulnerable to
education, open a bank account, or get a driver’s licence, security guarantees, which in turn hampers onboarding large-scale attacks. Data breaches can inflict considerable
for example. new customers. damage, not only in financial terms, but also in terms of
reputation and future trust.

3
Atala PRISM | What is decentralized identity? Presented by Input Output

What is the opportunity


that decentralized
identity presents?
A blockchain-based identity management system can address current
identity-related issues, such as the lack of proof of identity, data security
concerns, and fraudulent (‘fake’) identities.

A decentralized identity model is a win-win for individuals, According to a McKinsey study, decentralized identity has
businesses, developers, and governments. the potential to bring significant economic value to
emerging economies by uplifting their Gross Domestic
Individuals retain ownership and control of their personal Product (GDP) by 13% in 2030. Another study by Boston
information, decide how it is used and shared, and also Consulting Group (BCG) calculates that the economic
control the data’s safety (which can be managed by the value of digital identity for the Australian economy would
Decentralized identity has the be approximately $11 billion per annum. They point out four
individual, or outsourced to a trusted custodian.)
potential to bring significant key areas where this value would come from: reduced cost
Businesses incur less risks by only storing data with users, to serve, lower cost of fraud, improved customer
economic value to emerging experience, citizen value generated.
and keeping only what is legally required. Business growth
economies by uplifting their occurs through streamlining of the onboarding and
checkout processes. A decentralized identity solution would empower users to
Gross Domestic Product (GDP) access financial services, record financial transactions,
by 13% in 2030. Developers can design user-centric apps with built-in and build a credit history. This is key to enabling people to
privacy by design. enter financial markets and access loans.

McKinsey Study
Governments can leverage mobile networks and Financial inclusion is only possible through the reduction of
distributed ledger technology (DLT) to provide secure business risks, which would unlock endless opportunities.
digital identities and build smart cities, whilst protecting
citizens’ personally identifiable information and delivering
citizen-centric services.

4
Atala PRISM | What is decentralized identity? Presented by Input Output

The economic value of identity Emerging economies


is approx. $11b per annum
$B - P . A
20

Undertermined
value of future
products and
15 services

Average
10

Average
5

0
Reduced cost Lower cost of Improved customer Consumer value Total United United Brazil Nigeria Ethiopia India China
to serve fraud experience generated States Kingdom
26m face-to-face Against individuals Uplift for e/m- Less time spent verifying
Mature economies Emerging economies
verifications commerce and authenticating
Against businesses
88m other Targeted Advertising Document

65
verifications Against Government management

%
of potential value could accrue to individuals in
Purchasing security
240m phone Police-recorded fraud uplift
verifications
Prevention and
response
emerging economies in our focus group, making
it a powerful tool for inclusive growth.

A Frictionless Future for Identity Management: Digital Identification:


A practical solution for Australia’s digital identity challenge. Australia Post. More > A key to inclusive growth. McKinsey Global Institute. More >

Saved Saved Involved Provides Across Saving


74m AED 335m 15 of Dubai’s 88 digital 10 city 28 work hours
pieces of paper In cost cutting Government entities Resident & visitor Sectors Per person
services

5
Atala PRISM | What is decentralized identity? Presented by Input Output

How does it work?


Decentralized identity solves challenges for consumers, What are some use cases of decentralized identity?
businesses, and governments by enabling the sharing
of digital credentials over a secure and private digital Education
connection, using a digital wallet. To register for a university course, a student must present proof of identity such as
a government-issued ID card. Upon graduating, the student receives a set of digital
education credentials that can be easily shared with potential employers.
Self-sovereign identity (SSI) is a specific approach within the digital identity concept
that empowers the individual to hold their credentials and issue specific consent
E-government
to share them.
When applying for aid grants, farmers could provide government-issued land title
credentials to verify farms’ ownership.
SSI is built around two emerging standards: Decentralized Identifiers (DIDs) and
Verifiable Credentials (VCs). DIDs use cryptographic methods to securely associate
Finance
a subject (an individual, organization, thing, etc.) with the set of documents required
Applying for a bank loan requires a KYC process. Verifiable credentials such as
to prove their identity, and allow trusted interactions with the subject. a government-issued identity and a proof of employment can be submitted
and easily verified.

Telecom
Telecom operators can use verified identities to reduce fraud by ensuring that
contracts are issued to individuals with digitally-signed credentials.

Healthcare
When healthcare providers share medical records, a verified, government-issued
identity guarantees that records are associated with the correct patient.

Insurance
People applying for insurance policies must abide by KYC processes and
provide a government-issued identity and proof of address.

6
Atala PRISM | What is decentralized identity? Presented by Input Output

What are the actual benefits


of decentralized identity?
Enhanced User Experience Cost Reduction and Growth
DID-based authentication enables passwordless Decentralized identity reduces fraud, lowers costs,
authorization and quicker and more secure access enables a superior customer experience, and opens
to services, while providing cross-platform business up new revenue streams for businesses by issuing
automation workflows and full audit trail for customers with valuable verifiable credentials that
accountability. third parties would pay for with consent from the
data owner.

Richer Relationship Management Regulatory Compliance


Decentralized identity fosters better and enduring Decentralized Identity can be part of cybersecurity
bi-directional relationship management by enabling infrastructures that help businesses and
mutual and unique digital authentication with no organizations comply with existing regulations,
need for additional external connectivity channels. including GDPR and HIPAA. The creation of secure,
Once authenticated, no further consent is required. private, and trusted peer-to-peer communication
Connected parties can provide reputational feedback channels prevents hacks and ensures the validity
based on their interactions, which supports the creation and integrity of every interaction.
of reputation independent of any specific entity.

Decentralized identity solves the digital trust problem and


provides many benefits over traditional identity models.

7
Atala PRISM | What is decentralized identity? Presented by Input Output

Why is the Atala PRISM digital identity


solution the best out there?
Designed for scalability: can scale to millions of individuals,
organizations, or things.

Our plan with this blockchain Customizable: the underlying protocol can be optimized for
different use cases.
technology is to provide a digital
ID for close to 5 million students. Cost-efficient with predictable payment plan: based on
a batching scheme to keep cost-per-user low.
Minister of Education for Ethiopia, H.E Getahun Mekuria (Dr.-Ing),
April 2021.
Designed for high security: built-in resilience against
high-risk data breaches, and prevention of data
unavailability problems often encountered with
competitor solutions.

Watch the interview with Minister Mekuria


What are some real world deployments Atala PRISM is
on our CARDANO AFRICA 2021 special.
working on? Input Output is working with the Government of
Watch now Ethiopia to issue the first government-endorsed digital
identity solution based on Atala PRISM with the ultimate goal
of enabling financial inclusion. We have also partnered with
World Mobile Chain (WMC) to enable open finance in
Tanzania first and then across Africa.

8
Atala PRISM | What is decentralized identity? Presented by Input Output

Contact us
We work with your team to:

Help you understand decentralized identity and


the bold opportunity it presents.

Develop a Proof of Concept, built by a team of


leading engineers who have designed some of
The most advanced DLT protocols available.

Deploy, manage, and scale your operations.

To learn more about Atala PRISM and how it can


transform your organization, reach out to us
directly at [email protected]

Founded in 2015, Input Output is an engineering company that builds blockchain solutions for government entities,
corporations, and academic institutions. Underpinned by peer-reviewed science, we are building the first blockchain-
based operating system that will enable global scale financial transactions and all forms of social exchange. We aim to
put billions of new people and assets on the economic map, give 3 billion unbanked people an economic identity, track
global goods from source to sale, and de-risk investment in emerging markets. Our ultimate goal is to expand social
and financial services worldwide by digitally verifying people and assets that are off the banking grid, consequently
doubling the consumer market.

You might also like