Friday, July 1, 2022

How Does Blockchain Authentication Work

Encrypting The Blockchain Address Of The Requester

How does a blockchain work – Simply Explained

Samairah encrypts her own primechain address with Noodle Banks RSA public key. This is done using post /api/v1/encrypt_data_rsa and passing the following parameters:

  • data, which is Samairah’s ‘primechain address’
  • rsa_public_key of Noodle Bank
  • The output is the encrypted value referred to as encrypted_data_rsa:

    Models Of Digital Identity Management

    The first model of digital identity management was a siloed one. Each organisation issued a digital identity credential to a user to allow them to access its services. Each user needed a new digital identity credential for every new organisation he engages with. That provided a poor user experience. Just remember all the websites you had to register and create new passwords and login details for.

    The second model of digital identity management is called the Federated one. Because of the poor user experience of the first model, third parties began issuing digital identity credentials that allow users to login to services and other websites. The best examples of this are Login with Facebook and Login with Google functionalities. Companies outsourced their identity management to major corporations who have an economic interest in ammassing such large databases of personal data. This, of course, raises privacy and security concerns.

    Facebook, Google and others became the middlemen of trust.

    The emergence of Blockchain technology, and Verifiable Credentials allowed the creation of a third model of identity management: Self-Sovereign Identity.

    The Origins Of Cryptocurrency

    The concept of blockchain technology and Bitcoin in particular rose to prominence in 2009 when a mysterious person or group of persons going by the name Satoshi Nakamoto published a whitepaper:

    Bitcoin: A Peer-to-Peer Electronic Cash System.

    The idea that Nakamoto put forth and the technology that serves as the foundation of every cryptocurrency today is the same:

    The blockchain.

    The blockchain had a primary purpose:

    To allow individual people to execute financial transactions without the participation of a third party, such as a government or bank.

    Four existing technologies came together to power the blockchain:

    • the Internet
    • distributed networks
    • protocol governing incentivization

    Nakamoto combined these to create Bitcoin, the first platform to enable peer-to-peer digital exchange of currency.

    The technologies provide the access, security, public recognition of transactions, and incentive for community verification that makes the blockchain possible.

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    When Using A Blockchain Identity Management System What Exactly Goes On The Blockchain

    Only references and the associated attestation of a users verified credential are put on the ledger.

    Privacy can be ensured through non-correlation principles via pseudonymisation. So, instead of storing actual private information, the only things stored on the ledger are:

  • Public Decentralised Identifiers and associated DID Descriptor Objects with verification keys and endpoints.
  • DIDs are a new type of unique identifiers for verifying digital identities, and are entirely controlled by the identity owner. DIDs are independent of centralised registries, authorities or identity providers.
  • Schemas.
  • The formal description for the structure of a credential.
  • Credential definitions.
  • The different proofs of identity or qualification issued by authorities such as drivers licenses, passports, identification cards, credit cards, etc. Hence, credential definitions areas the name suggestsmerely the definitions of these different credentials to be stored on the ledger.
  • Revocation registries.
  • An option for issuers to be able to revoke the claim. The revocation registry is what tells the rest of the world how the issuer will publish the revocation information.
  • Proofs of consent for data sharing.
  • In order to prove consent or reception of data , these consent receipts let people do so.
  • What Are Distributed Networks

    Blockchain Architecture Basics: Components, Structure ...

    Cryptographic keys enable individuals to prove their identity and authority of ownership. But to provide additional security, blockchain technology enables requires individuals to communicate a transaction over the blockchain.

    The distributed network is a massive network of nodes that power the blockchain.

    If, in the scenario above, Person A sends a message that hes going to exchange 10 Bitcoin with person B, that message is communicated across the network.

    Every node on the blockchain will get a notification.

    Now there has become a public record viewable by anyone on the blockchain platform of that exchange. And it is added to the history of the ledger, which has recorded every single transaction in the history of the blockchain.

    These blockchain networks are massive. The power behind Bitcoins security is measured in hash rate hashes per second.

    Bitcoins network is so fast, its security is measured in TH/s one trillion hashes per second. The Bitcoin blockchain is secured by more than 3 million TH/s.

    Ethereum is secured by 12,500 THs.

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    Blockchain Vs Bitcoin Whats The Connection

    Bitcoin first appeared in a 2008 white paper authored by a person, or persons using the pseudonym Satoshi Nakamoto. The white paper detailed an innovative peer to peer electronic cash system called Bitcoin that enabled online payments to be transferred directly, without an intermediary.

    While the proposed bitcoin payment system was exciting and innovative, it was the mechanics of how it worked that was truly revolutionary. Shortly after the white papers release, it became evident that the main technical innovation was not the digital currency itself but the technology that lay behind it, known today as blockchain.

    Although commonly associated with Bitcoin, blockchain technology has many other applications. Bitcoin is merely the first and most well-known uses. In fact, Bitcoin is only one of about seven hundred applications that use the blockchain operating system today.

    is to Bitcoin, what the internet is to email. A big electronic system, on top of which you can build applications. Currency is just one. Sally Davies, FT Technology Reporter

    One example of the evolution and broad application of blockchain, beyond digital currency, is the development of the Ethereum public blockchain, which is providing a way to execute peer to peer contracts.

    Security By The Blocks

    A blockchain, as the name implies, is a chain of digital blocks that contain records of transactions. Each block is connected to all the blocks before and after it. This makes it difficult to tamper with a single record because a hacker would need to change the block containing that record as well as those linked to it to avoid detection. This alone might not seem like much of a deterrence, but blockchain has some other inherent characteristics that provide additional means of security.

    The records on a blockchain are secured through cryptography. Network participants have their own private keys that are assigned to the transactions they make and act as a personal digital signature. If a record is altered, the signature will become invalid and the peer network will know right away that something has happened. Early notification is crucial to preventing further damage.

    At a glance, blockchains have some desirable features that would help to secure your transaction data. However, there are other conditions and requirements to consider when you want to use a blockchain for business.

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    Why Was Blockchain Created

    Digital assets have a problem. How does one avoid that an asset, such as digital money, is copied and used by several people? That was a problem that always plagued the adoption of digital currency.

    Banks allow trust between people exchanging funds. The bank withdraws the funds from person A and assures its deposited on Bs account. Both parties trust the bank to perform the operation.

    But if one intended to create an ecosystem where there is not a single entity controlling the flow of information, where a user could send money directly to another user without it going through a central entity, this was a problem. How could the people involved in this financial system trust that the money had left As account and deposited on Bs? How could it be avoided that this digital money was copied and double spent by A?

    This problem was solved by the person, or entity, known as Satoshi Nakamoto in 2008.

    A Comprehensive Database Of Origin

    Blockchain Explained | How Does A Blockchain Work | Blockchain Explained Simply | Simplilearn

    The blockchain technology can have vast application in the certification of both existing and new artworks. A living artist can use blockchain to certify his or her own art, while works of deceased artists can be verified and added to blockchain by certification boards. In time, blockchain technology could lead to the creation of one centralized database that could encompass a list of all owners or all artworks ever created. Since the database will be transparent and easy to access, checking the artworks’ authenticity will be possible with just a few clicks.

    Blockchain technology can be equally valuable for certifying physical and digital art. The authenticity of physical artworks can be protected by using a chip similar to the one on your ID or passport. The chip holding a private key can be stored on the artwork, with accompanying public key stored on the blockchain. When you scan the chip, it goes through a cryptographic algorithm and affirms that this is the authentic work of art.

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    How It Can Help You

    It is a new technology that has the potential to disrupt many industries. Because of this, you need to be familiar with it to make informed decisions about how best to build and manage your investment. If youre not sure what blockchain is, below is a quick guide.

    A blockchain is a distributed ledger system that records transactions between two parties in an immutable way. It means that all information is held in one place and cannot be altered or deleted. Instead of using bank accounts or traditional databases to track transactions, blockchain ensures all transactions are entirely recorded in a single place. Blockchain allows for transactions without third-party involvement and secure and transparent data storage.

    Cryptography Methods Used In Cryptocurrencies

    Multiple methods exist for encryption in cryptography.

    The first one is Symmetric Encryption Cryptography. It uses the same secret key to encrypt the raw message at the source, transmit the encrypted message to the recipient, and then decrypt the message at the destination. A simple example is representing alphabets with numberssay, “A” is 01, “B” is 02, and so on. A message like HELLO will be encrypted as 0805121215, and this value will be transmitted over the network to the recipient. Once received, the recipient will decrypt it using the same reverse methodology”08″ is H, “05” is E, and so on, to get the original message value HELLO. Even if unauthorized parties receive the encrypted message 0805121215, it will be of no value to them unless they know the encryption methodology.

    The above is one of the simplest examples of symmetric encryption, but lots of complex variations exist for enhanced security. This method offers advantages of simple implementation with minimum operational overhead but suffers from issues of security of shared key and problems of scalability.

    This method helps achieve the two important functions of authentication and encryption for cryptocurrency transactions. The former is achieved as the public key verifies the paired private key for the genuine sender of the message, while the latter is accomplished as only the paired private key holder can successfully decrypt the encrypted message.

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    Now Lets Understand How Could Blockchain Identity Management Work

    Currently, people need the right way to manage their identity than paper-based documents. The app for Blockchain Identity management will help people to verify and authenticate their identity in real-time.

    Step 1: Installation of Mobile App

    An individual will first have to download the mobile app from the play store or app store to establish his/her identity.

    After downloading the app in mobile phones, a user will create a profile on the app.

    Once the profile is created, the user will get the unique ID number, which will help organizations access the users identification documents.

    Step 2: Uploading the documents

    After the user gets ID number, they need to upload the government-issued IDs on the app that will be saved in the IPFS with hashed addresses stored in the blockchain.

    The app will extract the personal information from these IDs to do self-certification of his/her details.

    The user will own their data. It helps users decide the information to be shared with organizations. Without the users consent, no data can be shared with any identity seekers.

    Step 3: Smart contracts generating trust score of the person

    Suppose there is a score that determines the trustworthiness of a person.

    Smart contracts containing the business logic can generate a trust score for a user from the information provided by them while creating a self-sovereign identity.

    Step 4: Third-party companies requesting access

    Lets discuss the example in more depth.

    How Does Identity Work Today

    How Does Blockchain Work: Guide for Businesses
    For Companies

    Companies often collect sensitive information about their users and store them alongside less-sensitive routine business data. This creates new business risks with the rise of user privacy-centric regulations such as GDPR and the shifting industry focus to corporate IT responsibility. When these data are relegated to tight-lipped data vaults, they become less useful in driving product improvements and attaining true customer understanding. Only after receiving large fines or developing stronger IT capabilities will many enterprises pursue expensive and risky projects to achieve the right balance between data security and business needs.

    For IoT Devices
    For Individuals

    Identity is integral to a functioning society and economy. Having a proper way to identify ourselves and our possessions enables us to create thriving societies and global markets. At its most basic level, identity is a collection of claims about a person, place or thing. For people, this usually consists of first and last name, date of birth, nationality, and some form of a national identifier such as passport number, social security number , driving license, etc. These data points are issued by centralized entities and are stored in centralized databases .

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    Can Blockchain Be Hacked

    The issue of security and trust has been fundamental for blockchain since it was first developed. The technology itself is very difficult to hack, and because blockchain is constantly being reviewed and transactions monitored by users, any attempt would be spotted immediately. Therefore, the true power of a decentralized blockchain-based system lies in its ability to address privacy concerns and guarantee the strongest security protocols.

    Supply Chain: Blockchain Authentication For Inventories

    Blockchain also ensures the authenticity and unfalsifiability of an inventory of fixtures by means of photos taken with a smartphone. Blockchain certification for car or flat rental inventory of fixtures could well become a new security standard.

    Start-up WeProov uses blockchain technology to authenticate inventories by taking a simple photo with a smartphone or tablet. It allows for a secure, forgery-proof inventory of fixtures with protected data traceability.

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    What Is Blockchain Consulting

    Blockchain computing involves using a public ledger, or blockchain that records every transaction on the network. It is often touted as an efficient and secure method to manage digital currency transactions.

    Blockchain consulting services help businesses understand blockchain technology and how it can benefit their business. It will enable them to integrate blockchain into their existing systems and find out the best ways to implement blockchain technology to maximize its value.

    It will also help you understand how your business can be part of the revolution that is taking place with this new technology.

    Distributed Secure Blockchain Authentication With 1kosmos Blockid

    Cryptography | Blockchain

    Blockchain technology and distributed authentication is poised to take digital identity management and verification into its next stage of evolution. The truth is that while massive advances have been made in the realm of database security, identity management and distribution, biometric authentication, and so on, these approaches are still locked in an old model of identity authentication.

    The future is in passwordless authentication that uses a combination of strong biometrics, private and secure blockchain ledgers, and identity proofing to ensure that the security, privacy, and integrity of digital identity remain intact. 1Kosmos provides critical features to support these efforts, including:

    If you are interested in learning more about how BlockID distributed ledger technology is powering the future of blockchain authentication, watch our webinar on . Also, make sure you stay informed on 1Kosmos news and updates by signing up for our email newsletter.

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    What Does Blockchain Technology Do To Help Manage Digital Identity

    Blockchain technology was born from the mind of Bitcoin creator Satoshi Nakamoto . Outlined in the whitepaper that laid out the concept of Bitcoin, the blockchain serves as a public ledger from which any user of a system can verify the integrity of all transactions in that system.

    Researchers and engineers in other fields quickly realized that the blockchain concept had incredible applications outside of cryptocurrency. Therefore, many of them built new forms of distributed ledgers that took the concept from Blockchain while addressing limitations and adding features critical for security and access or authentication applications.

    Following that new development, researchers and engineers actually built several types of blockchains as ledgers:

    Blockchain authentication uses the distributed ledger technology of a blockchain alongside identity verification methods to strengthen the privacy and security of authentication systems. The blockchain addresses the challenges mentioned above in several innovative ways:

    What If I Need To Change Something Revocation In Blockchain Identity Management

    Next to checking the attesting party, verification of a credential also includes checking the validity of the attestation itself. The validity of the attestation, meaning the accuracy and can be validated through a so called revocation registry.

    The registry contains the status of each credential, whether it has been revoked and hence whether this specific credential is still valid.

    In other words, the ledger enables everyone in the network to have the same source of truth about which credentials are still valid and who attested to the validity of the data inside the credential, without revealing the actual data.

    The scenario

    > This is my drivers licence

    > > Says who?

    > > Who are they and do I know I can trust them?

    > > Do they still agree/attest to this or have they changed their judgement?

    > Yes they have not revoked their attestation up to now

    Revocation means deleting or updating a credential. The possibility for an issuer to revoke a credential is crucial to an identity infrastructure for the main reason that identities are dynamic.

    Attributes can change over time e.g. house address or number of children, and some credentials should have a expiry date for example a passport or drivers licence. The fact is, however, that in order to ensure trustworthiness of the system and eliminate the possibility to defraud, credentials are immutable.

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