Blockchain-Based ID Verification
14 Nov 2023 by Harry Newman 4 min read
Blockchain-Based ID Verification

In an increasingly digital world where personal information is a valuable asset, traditional methods of identity verification are facing challenges.

Blockchain-based identity and verification solutions have emerged as a promising alternative.

Blockchain verification and digital identities enable more secure management and storage of information, with interoperable and tamper-proof infrastructure which benefits ID and verification-based systems.  

Blockchain-based ID and Verification

Blockchain verification and blockchain-based IDs revolve around the decentralisation and tamper-resistant nature of blockchain technology.

Instead of relying on a central authority to verify and store identity and verification information, individuals control their data through cryptographic keys stored on a blockchain, such as a crypto wallet, enhancing security, privacy and user control.

Blockchain Verification on a decentralised network reduces the risk of a single point of failure, instead, identity data is distributed across nodes on the blockchain network. 

Blockchain verification and identity-based information removes the need for: cumbersome identification paperwork processes, expenses required and lack of access.

Anything that is written on the blockchain can’t be altered in the future by any party. As the blockchain is public, anyone can verify that the credential was recorded at the correct time, validating that the information is correct.  

Advantages and Disadvantages  


Blockchain verification provides immutable and encrypted information on the blockchain, enhancing the security of identity data, the decentralised nature makes it harder for malicious actors to compromise your data.

The tamper-resistant nature of a blockchain makes it difficult for unauthorised parties to manipulate or steal information. 


As blockchain network adoption grows, scalability becomes crucial. If a blockchain experiences downtime or congestion then this could cause issues with users who use the blockchain for their verification.

The legal framework behind blockchain verification to accommodate blockchain-based IDs and verification in the real world is challenging. Acceptance of this as a standard verification system is still not widespread.   

Why is Blockchain Verification Important?

Blockchain verification plays a pivotal role in ensuring the integrity, security and transparency of digital assets.

Blockchain verification addresses a challenge related to verification, with a decentralised, tamper-resistant system offering a robust solution to any malicious actors that aim to cause harm.

Blockchains provide trust without the need for intermediaries. Traditionally a centralised authority, such as a bank or government agency, was relied upon to validate transactions, identities and verifications. 

Blockchains eliminate this dependency by providing a decentralised and distributed ledger that is accessible to all people in the network. 

Transactions and other information are recorded in a transparent and immutable way that allows anyone to verify the authenticity of information without relying on a single trusted entity.

In supply chain management for example, a business can use a blockchain to trace the origin and journey of products from a manufacturer to the end consumer.

Each step within the supply chain is recorded on the blockchain, providing an unaltered history of that product.

This level of transparency assures consumers that their products are authentic.

Final Thoughts 

Blockchain verification will be an essential part of the future, providing secure and immutable information forever on the blockchain.

The importance of blockchain verification is huge as a tamper-proof method of verification provides greater levels of trust and factual information.

The use cases for blockchain verification are vast, and the benefits this brings to the everyday user, such as not needing any physical paperwork. Changing the way verification and identification is done on the blockchain.    

This process is still in its infancy, with increased adoption there will only be a greater need for a secure and trustless way to verify information.


What makes blockchain-based verification and ID more secure than traditional systems?

As blockchains are decentralised and a network of nodes is used within blockchains, the risk of malicious actors compromising your data is reduced, and blockchain data is unable to be changed which helps to provide a more secure way of providing information.

How do users maintain control over their digital identity?

Users control their data through cryptographic keys. Any verification with a user through their wallet shows that they control that wallet.

What is blockchain verification?

As the blockchain is public, verification information regarding ID or other information can easily be checked to see if it is true, as the blockchain cannot be changed, providing a more secure way to verify information.

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This article is intended for educational purposes and is not financial advice.