Microsoft is using blockchain technology to develop decentralized digital identities

Microsoft plans to work on creating an identity management platform for users by using blockchain technology and its principles of decentralization. This would enable users to own and secure access to their online persona via an encrypted database hub. These decentralized ID schemes, owned and controlled by the users, can prevent the hacking of the complete information from a single data breach. Over the past year, Microsoft has been incubating ideas on how to use Blockchain and other distributed ledger technologies to create new types of digital identities designed to enhance personal privacy, security and control.

 “This new world needs a new model for digital identity, one that enhances individual privacy and security across the physical and digital world”, Ankur Patel, a principal product manager with Microsoft's Identity Division, wrote in a blog post. “Rather than grant broad consent to countless apps and services, and have their identity data spread across numerous providers, individuals need a secure encrypted digital hub where they can store their identity data and easily control access to it.” As a platform for the new open ledger ID technology, Microsoft plans to use its existing cloud-based Microsoft Authenticator application, which already enables multi-factor authentication for business and consumer customers.

There are millions of people who use the Microsoft Authenticator app to prove their identity, and with consent, the app can help in managing identity data and cryptographic keys. The actual identity data is encrypted and stored in an off-chain ID Hub, while the user’s hashed ID is rooted on a blockchain.