B Byrne, a product manager for Coinbase’s Identity team, envisions decentralized identity as part of a more robust blockchain ecosystem that extends beyond cryptocurrencies. The basic premise: Personal data could be verified once by a third-party, like the government agency, and then retained securely by an individual. Rather than sending your Social Security number to a company or service, for example, the Social Security Administration could put an unalterable stamp of approval on the blockchain that can be verified on request. A user could provide proof that they’re a real person without ever revealing the Social Security number itself. Replacing a system where sensitive information is copied into multiple points of weakness—like, say, Equifax’s servers, or even Coinbase, which itself requests Social Security numbers from its users—has obvious appeal in a time where corporate hacks of sensitive data are a constant occurrence.

Sourced through Scoop.it from: www.wired.com