Decentralized Identity Management Using Blockchain for Secure Cross-Border Digital Services

Abstract

On the other hand, the buzz around modern technology like decentralized identity management (DCI) is somewhat frozen in time on a blockchain to ensure its security and efficiency for cross-border digital services. The traditional way of identity management relies on a centralized authority and, therefore are very vulnerable to data breaches, extremely inefficient, and continuously quite hard to control. Concepts of self-sovereignty such as self-sovereign identity, decentralized identifiers, and verifiable credentials drive the DCI evolving way where persons can control their own personal data and usually share it selectively by themselves without the mediation of any third party. Cryptographic techniques such as zero-knowledge proof, are highly relevant to privacy and security, whereas a non-repudiable blockchain ledger is the security and necessarily provides auditability, ensuring authentication and non-repudiation. This paper examines how a blockchain Digitalized decentralized identity can serve to resolve some pertinent issues with regard to regulatory compliance in cross-border digital transactions, therefore thwarting identityrelated frauds and facilitating their international interoperability. The practical cases would showcase leaps in technology speed, one trust of the user, and regulatory harmonization with regard to the travel biometric credential systems being currently exhibited with reference to the e-Residency program in Estonia. Scalability and key management, though still some issues linger, the trend shows that upcoming innovations in the blockchain protocol-game and in the regulatory framework contribute to DCI being one of the major pillars of the trusted user-centric secure digital identity solution of the future global economy.