Navigating Digital Identity in a Post-Pandemic World: What You Need to Know

The Emergence of Digital Identity

2020 was a year that thrust many aspects of life into the online realm, making a compelling argument for the importance of digital identity. The rise of concepts like ‘immunity passports’ and online voting systems highlighted our growing dependence on digital solutions. In July of that year, the World Economic Forum shed light on these practices with a briefing paper discussing the risks and opportunities presented by the ‘internet of bodies’, which suggests that our digital identities could encompass more data than we ever imagined.

Balancing Data Control

However, this shift hasn’t come without its criticism. Many people are understandably hesitant about surrendering even more personal data to governments and institutions. With the fear of data misuse looming large, the conversation around digital identity has become a mixed bag of hope and apprehension.

Technology: The Answer, Not the Antagonist

Maintaining the status quo is not an option. The unusual events of 2020 exposed significant flaws in our existing identity systems, showing they simply don’t cut it in our current digital landscape. Some within the crypto community advocate for total anonymity as a panacea for data privacy. Sorry folks, but that’s as realistic as a cat chasing its own tail. We can’t live our everyday lives—whether it’s flying, online shopping, or getting medical care—without unmasking our true identities at some point.

Cryptographic Solutions to the Rescue

Enter technology’s shining knight in armor: cryptographic solutions like zero-knowledge proofs. They bridge the gap between the need for privacy and the necessity of verifying our identities when it truly matters.

Real-world Applications of Digital IDs

Consider the concept of ‘health passports’. Imagine wanting to board a flight in early 2022. Airlines need to know you’re not an infection threat—period. Following your COVID-19 and yellow fever vaccinations, this information can be encrypted within your digital ID. When the airline scans a QR code from your phone, they confirm you’re fit to fly without needing the nitty-gritty details of where and when you received those shots.

• Proving Age: Want to buy a bottle of wine? You could generate a QR code showing you’re of legal age without flashing your ID.
• Renting a Car: You can prove you have a valid driver’s license without handing over your entire life story.
• Banking Needs: Securely demonstrate your credit history when applying for a loan without disclosing your full identity.

Preventing Abuse and Ensuring Compliance

Of course, all systems need safeguards. It’s critical to have mechanisms in place that allow identities to be verified if legally necessary. This helps ensure compliance while preventing misuse by potential bad actors. Take, for instance, a scenario where someone uses a rental car for nefarious purposes. Authorities would need access to decrypt certain information to identify the individual. However, decentralizing this responsibility across various parties prevents a single point of failure and curtails the potential for misuse.

A New Era of Self-Sovereignty

As we look toward 2021 and beyond, we can expect to see the rollout of systems that enable people to carry their digital identities in their pockets. Say goodbye to outdated, document-based systems, and welcome the dawn of self-sovereignty over our data.