Brazilian banks are all set to implement a new uniform blockchain identity solution driven by the Hyperledger Fabric-platform. This identity solution is co-developed by the nation’s central bank named CIP and IBM. The new platform is supposedly to be incorporated into the Brazilian Payment System, an arrangement used by all financial institutions and banks in the nation. This platform will mark as the first multi-institution banking solution supported by blockchain.
All about the new system
The new structured blockchain platform has been advanced to authenticate and validate digital identities for customers’ bank accounts by using a person’s mobile device and SIM card information together with other smartphone derived personal information. As per the update from Cointelegraph Brazil, the combined information will be used to get a secure ID logged on a blockchain. The new developed secured system is expected to be introduced in the upcoming event CIAB Febraban in next week.
There is growing anticipation that blockchain-based offerings will play a massive role in securing personal data and digital ID in the coming period. However, since the firms to which they have to showcase their identities are expanding so quickly as to move into nearly every corner of users’ lives, it’s evident that there is still time before blockchain led ID systems to become prevalent. In addition, increased resistance will be offered by all those companies and platforms that gain from the existing system, in which users cannot restrict their data.
Digital ID and Blockchain platforms have seen considerable development in the last one year. This is seen in the number of reputed firms that have recently linked themselves in the segment. In January, the Authenteq reported that it had obtained $5 million in a Series ‘A’ funding round planned by Draper Associates. The same entity in the past had put funds in Baidu, Skype, and Tesla. During the same month, the CEO of the Canadian Bankers Association reported that they are favorably examining the notion of using a blockchain-based offering as part of their open-banking ID system that they were planning to advance.
