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How to Build Trust in Digital Identity with Blockchain? Experts Speak at AIBC Asia
In an increasingly digital world, establishing and maintaining trust in online identities is critical. In Southeast Asia, for example, the region’s digital economy has steadily expanded. Users in the region have increasingly engaged with digital platforms, contributing to high rankings in several global categories, including advancing digital identification systems.
In a panel discussion titled “Digital IDs and their Impact on the Development of the Digital Economy” at the recent AIBC Asia in Pasay City, Philippines, industry leaders explored the role of blockchain technology in revolutionizing how digital identities are verified and managed.
Blockchain as a framework of trust
Stephanie’s TowerBusiness Development Manager – Blockchain Company Philippines Chainexplained in detail how blockchain technology can provide a solid framework of trust in the digital economy.
“Trust is important in every aspect of our lives,” Tower said.
He drew parallels between historical business practices, where trust in a person’s identity was paramount, and the modern need to establish similar trust online.
Tower explained that blockchain enables the creation of digital identities that can be issued not only to individuals but also to companies and Internet of Things (IoT). This comprehensive approach facilitates the formation of a complete digital ecosystem. It emphasized the importance of selective data disclosure, allowing users to share only the information needed for specific transactions, thus improving privacy and security.
The challenge of data ownership
As for Love Maclangcoordinator of Digital Pilipinas, stressed the need to reframe how data and national identities are perceived.
“We are poor first and foremost, not because there is no money, but because people do not own their data,” Maclang said.
He stressed that major financial institutions often prevent individuals from own your dataa practice that stifles economic growth and personal emancipation.
She believes that data ownership should be central to the digital economy, allowing individuals to have control over their personal information rather than being at the mercy of institutions.
KYC Solutions in a Diversified Digital Landscape
Penny ChaiVP of Business Development APC at SumSub, has addressed the challenges of digital identity verification, especially for individuals without traditional forms of identification. SumSub specializes in making digital identity verification secure and accessible, preventing fraud and protecting identities throughout their lifecycle.
Chai emphasized that SumSub’s platform is customizable to accommodate the legal and business requirements of different regions. This adaptability ensures that even those in remote or technologically underserved areas can access and benefit from digital identity solutions. He emphasized the importance of inclusivity, ensuring that both tech-savvy users and those less familiar with digital tools can navigate the identity verification process.
Bridging the gap between physical and digital payments
In the meantime, Lorenzo FerrerPresident and CEO of payment solutions provider Bayad, discussed the practical applications of digital identity in the payments industry. Bayad, a trusted name in bill payment in the Philippines, faces the challenge of migrating customers from physical to online payments. Ferrer emphasized the importance of collaborating with fintech companies and financial institutions to build a scalable and inclusive organization digital payments ecosystem.
Ferrer noted that many customers do not have formal IDs, which hinders their ability to fully participate in the digital economy. By leveraging transaction data and working with partners, he said Bayad aims to create a digital identity based on payment behavior. This approach not only facilitates access to financial services, but also increases trust and security in online transactions.
The Evolution of Identity Verification
Digital identity verification is evolving beyond traditional Know Your Customer (KYC) methods. Maclang mentioned how India’s Aadhaar system has simplified identity verification using limited filters and biometrics, setting a precedent for other countries. He suggested the Philippines could adopt a similar model, leveraging technology to create a digital locker where individuals control their data and grant access as needed.
The Tower added that self-sovereign identitya blockchain-based concept, allows individuals to own and manage their own credentials. This approach ensures that users can selectively disclose information, while maintaining privacy and satisfying verification requirements. Blockchain technology thus enables a shift from centralized identity control to user-owned data, promoting greater transparency and security.
Inclusivity and Accessibility in the Digital Age
Chai and Ferrer emphasized the need for inclusivity in digital identity solutions. Chai described how SumSub’s customizable platform can meet the diverse needs of users, from urban centers to rural areas. Ferrer highlighted Bayad’s efforts to integrate the unbanked and underbanked populations into the digital economy, using transaction data to build trust and offer personalized financial services.
The discussion highlighted the transformative potential of digital identities to drive economic inclusion and improve security. As technology continues to evolve, the focus remains on creating systems that are not only secure and reliable, but also accessible and empowering for all users.
Experts agreed that blockchain technology plays a critical role in building trust in digital identities. By supporting data ownership, leveraging blockchain for secure and transparent verification, and ensuring inclusivity, industry leaders are paving the way for a more equitable and efficient digital economy.
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