Blockchain, artificial intelligence, and biometrics will form the technological core of a rapidly growing digital identity market over the next decade, a new report predicts.
Driven by rising security threats and the ongoing digital transformation of commerce and government services, tokenized ID will redefine security and identity recognition by 2030, according to global consulting firm Frost & Sullivan.
Aravind Srimoolanathan, senior research analyst, ICT at Frost & Sullivan, said:
“National identification programs are gaining prominence as countries are striving to establish a unified database of robust, unique identity documents of citizens for ease of governance.”
“By 2030, advancements in blockchain technology will lead to its integration with biometrics, resulting in the establishment of a single-token digital identity for individuals.”
The cybersecurity required to protect digital identity databases will also be substantial, Frost & Sullivan said. “Partnering with blockchain technology companies can enhance digital identity solution offerings as well as overall security and efficiency.”
On the security side, threats ranging from civil unrest and illegal immigration to terrorism is one of the drivers of this move towards secure digital IDs, Frost & Sullivan said in a release. Another is the growing digital transformation of society as a whole, which is causing digital transactions to soar — along with sophisticated hacking and identity theft operations.
“As hackers adopt refined technologies to disrupt and bypass security systems,” the report said, advanced biometrics-powered ID systems “are expected to become crucial means to enhance security by 2030.”