What's the role of decentralized identity in combating online fraud

pixabay.com

Today I will love to discuss about decentralized identity and how it helps to combat prevalent fraud cases in the online space, stealing is bad whether digitally or in physical reality and any who involves in act that aims to defraud someone should be made to pay for what they have done, well in cases where that is not possible probably because there is no way to trace the individual as to hold them accountable then it's important we learn or are informed of ways we could better combat this online fraud.

What are these roles that decentralized identity play in combating online fraud

One very important role of decentralized identity in combating online fraud is that they help stop or prevent of the the medium this cheap online fraudster use which is phishing attack, this is accomplished by ensuring that the traditional username or password combinations are not overly depended on which is to say users are able to gain authorization or access without needlessly puting this traditional password which are often the target of phishing attacks and this is made possible by decentralized identity which is one way they help in combating online fraud.

Another good side of this decentralized identity is that they are very effective when it comes to analysis of what could be termed fraudulent and are able to detect it as well. This shouldn't really be a surprise because this form of identity verification is decentralized which means is based on blockchain network and we know blockchain network are very transparent which means any attempt to or any suspicious patterns could easily be analysed and detected further serving as a hindrance for this malicious actors to achieve their nefarious goals and when one indulges in something fishy such activities could be spotted immediately or even flagged for further enquiry, by doing so decentralized identity helps in combating online fraud.

Also with the use of decentralized identity it enables users to have total and absolute control over all their information and they get to decide exactly when this information is used which means low chances of fraudulent activities occuring because there is very little or no chance for one to gain access to their personal data atleast when secured properly which is made possible by decentralized identity which help a great deal in combating fraud online.

This plays a pivotal role in helping to curb or combat or in the prevention of online fraud as it also helps to ensure the transactions of users carried out in the platform are secured this thus ensures that users are able to transact seamlessly without risk of private data's being exposed due to the tamper-resistant identity this provides that goes a long way in providing extra layer of security and ensures for a seamless transaction leaving a happy network of users.

How do decentralized identity help in ensuring regulatory compliance and privacy preservation

Also as a bonus apart from the other major roles decentralized identity plays in combating online fraud they also help to ensure the privacy of it's users are preserved and even help in ensuring regulatory compliance.

How do they accomplish this, how do decentralized identity help in ensuring privacy preservation and regulation compliance?

Well the personal data or information of every user are in their custody and theirs alone which means no third party at all or central authority has access to them like it's seen in centralized system which thereby means there isn't any risk of anyone obtaining their information from anywhere else to jeopardize their privacy only by their consent would anyone gain any measure of access to their information so yes indeed decentralized identity help to prevent frauds relating to users identity which this lead to privacy preservation.

And they also help to ensure that there is accountability in the system, when fraudulent activities are combated that means there is more trust in the system and not just trust but it ensures the integrity of the system and when there isn't any concerns for identity theft of users data it leaves happy users which means no need for any law suit or anything whatsoever relating to that which helps to ensure that regulation are adhered to due to the accountability it provides which is a very wonderful thing indeed.

Conclusion

Indeed decentralized identity plays a major role in combating online fraud largely due to the fact is blockchain based so it's vital in our quest to prevent or better combat fraud prevalent in this space and hackers as the case maybe. Peace, am out.