The role of Decentralized identity in combating online Fraud

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Introduction

Decentralized identity (DID) is basically a concept that enables and empowers individuals with the ability to gain full and total ownership and control over their digital identities, applying decentralized identity further provides simplified compatible and secure identifiers as a result enhancing privacy.

The creation and usage of decentralized identity is successfully changing and improving the way online and digital identities of users are being managed and secured, it is doing this by taking the initiative to abandon and move away from platforms that are based on centralized authorities to distributed networks, thereby offering numerous potential benefits and hedge in combating online fraud.

In this post of mine I will be exploring and discussing some of the significant ways and roles the use of decentralized identities is playing lin combating and facilitating a successful fight against the imminent risk and threat of online fraud poses on users of the digital world and network.

• Promotes Interoperability

One role that decentralized identity plays in facilitating actions taken to combat online fraud is by promoting and facilitating systems and network interoperability, it also ensures that there is a compliance and adherence to open standards and as a result enabling a kind of seamless integration with the existing traditional identity mechanisms.

The decentralized identities is an innovation and development in this digital age that provides us the equipment and mechanism to provide and offer solutions as well as address the issue of privacy seeing as it possess the power to facilitate a trusted and most importantly secure transaction networking between different multiple parties or entities.

This interoperability amongst different multiple networks and entities helps to reduce any fragmentation in the world of identity management and security, therefore it is making it harder and almost impossible for fraudsters and hackers to find any vulnerabilities to exploit across a number of different networks and systems.

• Ensures Full Ownership And Control

Another important and significant role that the implementation of decentralized identity plays in combating and curbing the threat of online fraud is that it empowers individuals, giving them the authority to take full control and ownership and over their digital identities.

While still using the traditional centralized systems, users were required to trust third party platforms, websites and applications, submiting and giving up their personal and private information and data to them, me I would say that this alone increases the risk of hacking, data breaches and identity theft.

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However, decentralized identity on the other hand empowers users to manage and take charge of the security of their identities directly, as a result reducing the reliance on vulnerable centralized databases and minimizing the risk and potential for fraudulent activities.

• Immutable Audit Proof

Decentralized identity takes full advantage of the fact that it is based on the block chain technology, it therefore creates and facilitates an immutable audit proof and receipt of identity related transactions, here also is another significant role that the decentralized identity plays in combating online fraud.

Because the decentralized identity is a block chain based system and network, every operation and transaction, those that has to do with dentity creation, authentication, and verification, is recorded on the block chain's transparent and tamper proof and immutable ledger.

This therefore improves and ensures that there will be accountability and traceability in the network and system, as a result making it more difficult and next to impossible for fraudsters to alter, manipulate, forge or steal identity related information.

• Decentralized Identifiers

In the fight against online fraud in this our digital world, the creation and implementation of decentralized identifiers is another important role which the decentralized identity is playing , the decentralized identity helps to facilitate, create and make available globally unique decentralized identifiers for its digital users.

Unlike the traditional identifiers which the traditional identity which do not operate on block chain technology privides and are dependent on centralized authority, the decentralized identity on the other hand allows each user to create and manage with full control and authority over their own digital identity.

This decentralized strategy and method of approach reduces the risk of identity theft and fraud which the centralized identifiers, the traditional identifiers is prone to seeing as there is no possibility or risk of a single point of failure.

Conclusion

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In conclusion, the decentralized identity offers alot of potential benefits and advantages including a change and development in how we manage and authenticate or verify identity in this digital age.