An Assessment of Blockchain Identity Solutions: Minimizing Risk and Liability of Authentication

Abstract

Personally Identifiable Information (PII) is often used to perform authentication and acts as a gateway to personal and organizational information. One weak link in the architecture of identity management services is sufficient to cause exposure and risk identity. Recently, we have witnessed a shift in identity management solutions with the growth of blockchain. Blockchain—the decentralized ledger system—provides a unique answer addressing security and privacy with its embedded immutability. In a blockchain-based identity solution, the user is given the control of his/her identity by storing personal information on his/her device and having the choice of identity verification document used later to create blockchain attestations. Yet, the blockchain technology alone is not enough to produce a better identity solution. The user cannot make informed decisions as to which identity verification document to choose if he/she is not presented with tangible guidelines. In the absence of scientifically created practical guidelines, these solutions and the choices they offer may become overwhelming and even defeat the purpose of providing a more secure identity solution.We analyze different PII options given to users for authentication on current blockchain-based solutions. Based on our Identity Ecosystem model, we evaluate these options and their risk and liability of exposure. Powered by real world data of about 6,000 identity theft and fraud stories, our model recommends some authentication choices and discourages others. Our work paves the way for a truly effective identity solution based on blockchain by helping users make informed decisions and motivating blockchain identity solution providers to introduce better options to their users.CCS CONCEPTS• Security and privacy → Privacy protections; • Social and professional topics → Privacy policies; • Applied computing → Digital cash.