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The “F”, the “B” and the “C” Word in Digital Identity

– RegTech Associates

  • Viewpoint
  • Posted by Good ID team (Good ID)
  • Via Frank Joshi (RegTech Associates)
  • 5 January 2021

In this article the author outlines federated, decentralized, and centralized identity, and the problems that arise when they are misunderstood

The author explains the drawbacks of centralized identity, which can be vulnerable to hackers, and argues that decentralized identity is a model of digital identity with huge real-world benefits. But misunderstandings such as conflating federated and centralized identity are widespread, which partly explains why the benefits of digital identity have yet to be truly realized.

“Unfortunately, the nuances outlined for you here are totally lost on the vast majority of policymakers and solution architects, let alone on those who say they are identity specialists.”

The author writes of the failures of blockchain, and stresses the need for RegTech institutions to rethink their approach to digital identity in 2021, and move away from the belief in distributed ledger technology as a panacea.

Regulated institutions risk being beguiled into thinking the answer to digital identification is only a technological one. It isn’t

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