"When you already have a wheel, you can make a wheelbarrow, or a car. People are discovering any number of ways" to use blockchain, says Suresh Ramamurthi, the chairman and chief technology officer of CBW Bank. The Future of Digital Identity Is Up to Banks Could blockchain be the backbone of a universal digital identity system?
Innovative banks are increasingly seeing their future as the stewards of identity — they would serve as the authenticators. Such a system would allow consumers to use a digital token to verify their age when ordering a beer or to log onto an e-commerce site.
But several blockchain companies are looking to play a vital role in the future of identity. In theory, blockchain technology enables entities independent of each other to rely on the same shared, secure and auditable source of information in a way that fits well with a system of widespread digital identity.
Gem, a startup in Venice, Calif., is focused on getting companies within the same industry to share information via blockchain technology. For banks, one possible solution would be in Know Your Customer compliance — bank users would be able to vet a customer by relying on the work another bank has already done. Another is London-based Credits.Vision, which is looking to create a blockchain of blockchains, connecting various permissioned and public systems so that a digital identity could be truly universal.
As banks plot their future in identity, many may look to partner with blockchain companies also eyeing the space. Suresh Ramamurthi , the chairman and chief technology officer of CBW Bank of Weir, Kan., sees digital identity as a practical use for blockchain. His bank, like many others, has been seriously investigating the possibilities of the blockchain. For instance, it has partnered with distributed-ledger firm Ripple for instantaneous cross-border transactions.
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