Microsoft to test blockchain-based self-sovereign ID system





Last month, Microsoft joined the ID2020 alliance, a global partnership working to create an open-source, blockchain-based digital identity system for people in the US or nations who lack legal documentation because of their economic or social status.



Microsoft plans to work with other companies and industry groups to enable its "self-sovereign digital identity platform," according to Patel.

How blockchain works G2 Crowd

"Today, the Microsoft Authenticator app is already used by millions of people to prove their identity every day. As a next step we will experiment with Decentralized Identities by adding support for them into Microsoft Authenticator," Patel wrote. "With consent, Microsoft Authenticator will be able to act as your User Agent to manage identity data and cryptographic keys."

On the new platform, only a user's hashed ID is rooted on a blockchain, while actual identity data is encrypted and stored in an off-chain ID Hub that Microsoft can't see.

"Once we have added this capability, apps and services will be able to interact with [a] user's data using a common messaging conduit by requesting granular consent," Patel said. "Initially, we will support a select group of [digital ID] implementations across blockchains and we will likely add more in the future."

While Microsoft is targeting a larger audience, blockchain's use for security and authentication is not new and other companies are also using it as an ID aggregator.

For example, Estonia-based data security provider, Guardtime, already uses blockchains to create a Keyless Signature Infrastructure (KSI), a replacement for the more traditional Public Key Infrastructure (PKI). PKI uses asymmetric encryption and a cache of public keys maintained by a centralized certificate authority. The company  has already grown into "the world's largest blockchain company by revenue, headcount, and actual customer deployments," according to a recent report from B2B reviews platform G2 Crowd.

"In 2016, the company reached an incredible milestone as it secured all of Estonia's 1 million health records with its technology," G2 Crowd said.


While there are dozens of these security ID products available, blockchain gets pigeonholed as a fintech-focused resource, when in actuality, "anything pertaining to transactions or data integration could adopt blockchain capabilities, and identity management companies are the first to jump in," G2 said.


"The Dubai Government is working on a city-wide blockchain pilot with IBM and ConsenSys in an effort to become a blockchain-powered government," said Csilla Zsigri, a senior blockchain analyst with 451 Research. "Proofs of concept in plan include streamlining ID verification to reduce business registration times, and digitizing and tracking citizens' health records, wills and contracts, among other assets."

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