Decentralized Identity Systems Tackle Biometric Data Risks with Blockchain: Report

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The collection of biometric data by the tech industry has introduced a slew of risks for users, along with substantial costs for the companies managing this sensitive information. Evin McMullen, co-founder of Privado ID, a decentralized identity project, recently shared insights on how a decentralized blockchain can alleviate some of these concerns.

McMullen pointed out that biometric data often passes through a complex web of service providers, increasing the risk of exposure to multiple third parties. This raises the stakes for privacy breaches, making the management of such data a significant challenge.

McMullen suggested that biometric data should be shared on a strict “need-to-know” basis. Ideally, data collected on mobile devices should never leave the device or connect to the internet. Instead, she recommended the use of zero-knowledge proofs — a cryptographic technique that allows data verification without revealing its contents. Such blockchain-based methods could limit the exposure of biometric information and ensure that users retain control over who accesses their data.

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Cybersecurity Threats and the Cost to Companies

Handling biometric data is a costly endeavor for companies, not only in terms of cybersecurity but also compliance with stringent regulations such as the European Union’s General Data Protection Regulation (GDPR).

The decentralized nature of blockchain technology offers a solution by minimizing central points of failure, which are prime targets for cyberattacks. McMullen noted that it is in the economic interest of businesses to avoid storing biometric data, especially given the complexities involved in handling requests for data deletion or amendments.

In traditional systems, companies face high risks as they rely on centralized data storage, making them vulnerable to breaches. By contrast, decentralized identity solutions allow for more secure data handling, mitigating some of these risks. McMullen highlighted the inherent flaws in traditional data models, which she described as being built on “monopolistic assumptions” that blockchain solutions can address.

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Need for Decentralized Blockchain Solutions

McMullen also raised concerns about the potential misuse of centralized biometric databases in human rights violations. She referred to historical events, such as the persecution of ethnic minorities during World War II, where meticulous documentation of personal data was weaponized.

This highlights the broader implications of data privacy, making the case for decentralized blockchain not just a technical solution but also a safeguard for human rights.