The demand for online identity verification services in pandemic times

Decentralized technology becomes an essential part of past-paced digital transformation and digital identity management through the COVI-19 pandemic.  

Back in 2016, the concept of online identity verification systems in the IT industry was introduced and discussed officially for the first time at the ID2020 summit of the United Nations. Experts state this secured solution will be one of the most remarkable technology trends in the next few years. As a result, the ID2020 Alliance was established with the key participation of top custom software development companies such as Microsoft, Accenture, Gavi the Vaccine Alliance, and the Rockefeller Foundation. 

Soon after, online identity verification solutions started being issued with the national scope. Many countries worldwide like France, Canada, India, Belgium, Italy, Japan, Thailand kicked off the first stage of their national eID schemes. 

The fallout of the COVID-19 has indeed been accelerating the implementation of digital identity and security. Furthermore, online identity verification services also raise concerns relating to human rights and privacy over personal data. 

The increasing adoption of online identity verification amid COVID-19

A digital identity service is a set of credentials belonging to the one and only person, in which attributes are captured, validated, and verified electronically in the digital world. Three primary forms of those attributes include:

• Biographic information: name, age, ID number, citizenship, etc. 

• Trusted ID Document: passport, driving license, etc. 

• Biometric data: fingerprints; facial image. etc. 

All that information empowers people to participate in the broader economy, including employment, banking, finance, health insurance, etc. It provides trustable authentications, as well as the ability to access private and public services with identity proof requirements. 

The COVID-19 pandemic has accelerated the adoption of digital identity sẻvice by many governments around the world. For example, India’s state governments are implementing real-time identification mechanisms to monitor the quarantines: people are required to take a selfie with information of the device’s time and location. 

After having a software development firm launched the TraceTogether app to track the virus exposure, Singapore also started operating the nationwide digital check-in system at the end of 2020.   

According to a Pulse News report, three mobile operators in South Korea, LG Uplus, SK Telecom, and KT, are also building up mobile identity verification services, which allow people to log in to web apps or mobile apps by phone numbers. This is one of their attempts to support the government in facilitating digital identification systems and electronic certificates. 

A statistic from Goode Intelligence shows that the number of online identity verification services adopted in 2020 all over the world was 20% higher than the expectation of 704 million in the middle of 2019.

And due to the huge outbreak of the pandemic, the digital identity service has rolled out the immunity passport solution, which is promoted by political and economic institutes, and especially the travel industry. 

Advantages of online identity verification systems

In COVID 19 pandemic, online identity verification enables users to identify whom they are dealing with without revealing more than the strictly necessary information. The system has significant potential for online education, issuing employment credentials, and fighting fraud. Identity verification systems are often confined to banking software development to check and combat money laundering. 

In the business context, online identity verification offers a proper security method to protect critical infrastructure and provide secure remote logins for users, avoiding any federal litigation and conflicts. With less demand for expensive identity and access management and support systems, this will keep compliance costs down and allow users to focus on delivering services. 

Secure digital identity with blockchain technology

Digital identity system, including immunity passports, certainly covers almost all information of a particular person, the location, and sensitive personal health. And needless to say, they are shared with the governments and technology owners like medical software development companies. That’s why the implementation of digital identity raises serious concerns about data privacy.  

Recently, the entire data of the COVID-19 track and trace program of the Netherlands has been leaked, losing control of thousands of personal information. 

And a viable software development solution for this issue can be blockchain technology, which provides a decentralized digital database. Users control attributes about identity, location, or health credentials and decide which can be shared. If used appropriately, this immutable technology will help to enhance the strength of data privacy. 

According to the software developer, one step further is the decentralized identifiers, in which the blockchain network can verify trusted organizations or individuals issuing the data without storing them. It complies with the data privacy regulations like GDPR standards. Additionally, anonymized data can still be used when necessary, such as tracking the statistic of COVID-19 vaccinations in a country. 

Final words

The COVID-19 pandemic has spurred the digital transformation in identity management, which increases the demand for digital identity service providers. While there are still concerns about personal privacy, online identity verification services with blockchain technology support will be promising solutions if developed appropriately.