as it addresses key cybersecurity challenges such as identity theft , and privacy concerns ,” continues Sami Dhifi , Director and Cyber Risk Services Lead at Alvarez & Marsal .
Traditional identity management systems often rely on centralised databases , which create single points of failure that are vulnerable to data breaches and identity theft .
This means that , if the database is compromised , all the stored data is at risk . This centralisation makes them attractive targets for cybercriminals , as gaining access to a single database can potentially expose vast amounts of sensitive information .
Additionally , the reliance on a central authority to manage and authenticate identities can result in bottlenecks and inefficiencies .
In contrast , blockchain-based systems decentralise identity management , using distributed ledger technology to ensure that identity data is securely stored and managed across a network .
This decentralisation eliminates the risk associated with centralised data storage , making it exponentially harder for malicious actors to alter identity data without detection .
Unlike centralised systems , once identity data is recorded on the blockchain , it cannot be changed without
158 October 2024