In my previous post about NEO, I have talked about the concept of the smart economy that NEO is trying to build. It’s a comprehensive concept to describe how the future economy will look like. In this ecosystem, digital identities are mandatory and TheKey provides just that. You cannot have an economy where you can digitize and trade every asset through smart contracts if you don’t have digital IDs to link the assets to. And that’s why digital ID is one of the building blocks of the smart economy and the focus of TheKey.
ID verification is, in my opinion, what is going to be disrupted the most using blockchain technology. Since the beginning of the internet era, control over Identities and privacy have been a huge problem. But a solution is coming using blockchain. With blockchain technology, you can fully control your Identity data. You can give access to part of it depending on the KYC requirements of a specific institution. Data that needs to be verified at the airport is not the same as the one that needs to be verified at the hospital.
TheKey is not a new foundation. It has already created a first-generation identity verification system. It is currently deployed in two cities and applied to mobile insurance to allow patients to claim payments from their insurance company. With future deployments planned, TheKey has some good foundation for the second-generation identity verification system. The system is BDMI which stands for Blockchain Dynamic Multi-Dimension Identification.
Securing the identity data with decentralization using blockchain is the best way to solve the single point of failure issue experienced with current technology. Every digital identity management system needs blockchain for people to take back control over their data.
TheKey ecosystem consists of individual users which are the owners of the data, service providers which are the entities requesting the data from users and finally validators who oversee the data to make sure it’s correct. The validators can include government entities, financial institutions, hospitals in order to construct a complete digital identity of a specific user. TheKey ecosystem uses TKY token to exchange the identity services between the users, service providers, and validators
It’s very important to understand that the users are in full control of their data during every stage of the process. When the service provider requests certain ID data and the user accepts, TheKey network needs to verify it. KYC rules are implemented in smart contracts to make sure that service providers do not ask for irrelevant information. That makes the network very secure, accurate and reliable.
According to the roadmap, the Testnet will be ready by mid-2018 and Mainnet by the end of 2018. The team has relevant experience in big data. They have already delivered the first generation of the DMI as I mentioned. So, I think there a good chance that the team will deliver on its promises. However, cryptocurrency is extremely risky and some technical issues are still waiting for a solution. Let’s see.