Blockchain-Based Solutions Trigger the Wide-Reaching Progress of Identity Authentication Tools

The market for identity authentication management using blockchain and distributed ledger technology (DLT) is likely to grow to around $11.46 bln by the year 2026 – just six years from today.

In the report by a market analyst, Allied Market Research, a comprehensive analysis of the value chain and market dynamics connected to the BIMM, excellent success policies, major areas, and corporate performance, has been presented.

The report pointed to transparency improvement; quality, reliability, genuine, and product safety assurance demands soaring; skyrocketing investment in the retail sector for DLT-based solutions as a growth engine for the BIMM.

Additionally, the fast-changing retail space and the trading sector are expected to open up a wide range of prospects for main blockchain identity firms. The lack of technical experts was cited as a factor to limit market progression.

The sector is growing

As of now, there are 3 types of firms within the sector: apps, middleware, and infrastructure providers. The biggest type of enterprise is the infrastructure provider. In 2018, infrastructure providers occupied over half of the souk. The report anticipates that the infrastructure industry will remain dominant in the market by 2026. The CAGR for app providers within the expected period is 84.8%.

Many giant tech companies including Microsoft and IBM are exploring the potential of blockchain for identity authentication, as this problem has been a very sensitive one in all sectors of business. If a company works with clients, it needs some effective and secure tools to identify a client’s identity. For instance, if you are a cryptocurrency exchange, you should do your best in order not to give your client’s money to some impostor who has stolen the client’s personal data.

Data stealth is a pain in the neck of any business, as companies constantly search for reliable tools for storing personal data of both their customers and employees. Nevertheless, the stealth of personal data and credentials is not uncommon these days. Moreover, selling of such credentials occupies a significant market share in the darknet.

That is why reliable identity authentication solutions are critical for any company, and blockchain can possibly become such a solution. Due to its decentralized and immutable nature, no one can get access or change data except for its owner once the data is recorded on a blockchain. At the same time, solutions based on the technology offer various tools such as digital signatures, timestamps or smart contracts etc., that allow for unmistakable authentication of a client using one’s account within the network. 

That is probably the main reason for such a growth of interest in blockchain-based solutions for identity authentication. If such solutions turn out to be more secure and reliable than any other tools, we might see a further flourishing of the sector even beyond the forecast made by Allied Market Research.