Smart Contracts Application in Identity Security

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Smart Contracts Application in Identity Security

Let's take a look at the importance of identity security and how the application of smart contracts can help fix that!

· Security Zone ·
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With so many devices connected online, manual management of data has always run into problems when dealing with fake identities. Gartner predicts that by 2020 more than 20 billion devices will be connected to the Internet, and Facebook reports nearly 270 million fake accounts, according to Mashable.com.

Using smart contracts in identity security has never been more necessary.

What Are Smart Contracts?

Smart contracts or crypto contracts were first coined by Nick Szabo, highlighting how blockchain technology could aid transactions.

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Tec target defines it as, "a computer program that directly controls the transfer of digital currencies or assets between parties under certain conditions."
Smart contracts are basically contracts done digitally which make them more secure and quicker to update than traditional methods.

Advantages of Smart Contracts

Smart contracts make use of blockchain technology. Therefore, the middleman is eliminated and the process becomes much more reliable.

The decentralized system makes this much more reliable and stable.

No third party is involved, and the ledger technology can ensure that these computer-coded contracts are stored and replicated on different systems.

It helps to carry out the process in a more transparent and conflict-free manner. With ledger feedback on each computer, chances of fraud are almost non-existent.

Various other advantages of smart contracts can be summarized in the image below.

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The most important advantage that smart contracts can offer is the elimination of third parties, and hence, any possible confusions are avoided.

Application of Smart Contracts

Smart contracts have started to find greater acceptance as blockchain technology has gained momentum. Some of them include:

Real Estate: This way, it helps to keep records of all the transactions and eliminate any possible frauds. Payments are often made in cryptocurrencies and distributed ledgers.

Healthcare Policies: Oftentimes, paperwork involvement adds to the confusion of the process. Smart contracts ensure personal history security and easy access to the policy details. It also ensures ease in updating the details.

Managing IoT: With staggering amounts of data flowing online and billions of devices connected to the Internet, blockchain technology is very useful to secure the most important info.

Another common application of smart contracts is identity security.

Smart Contracts for Identity Security

According to onlinestats.com, more than 3 billion active Internet users exist across the globe. Maintaining and securing the data becomes even more important in this scenario.

Using smart contracts for this purpose means involving the blockchain technology to ensure the dynamic management of the trust.

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PKI (Public Key Infrastructures) are used for identity security using smart contracts. They have multiple nodes. When all the nodes reach a consensus, updating the information or downloading it becomes possible.

Therefore, each step is recorded and verified dynamically. Manual methods of verifying identities fall under the lack of flexibility and slow progress that makes us prone to mistakes.

Smart contracts help to address these problems.

Future of Smart Contracts and Identity Security

Blockchain technology is still developing. Computing power is increasing and people are realizing the importance of securing their data and identities.

In other words, blockchain is here to stay. 

apps, blockchain, identity security, identity theft, internet, security, smart contracts

Opinions expressed by DZone contributors are their own.

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