A case study Evaluation of Blockchain for digital identity verification and management in BFSI using Zero-Knowledge Proof

Abstract

The Banking, Financial Services, and Insurance (BFSI) sector represents a significant portion of any developing or developed economies of the world involving all banking, insurance, and non-banking financial institutions. This sector is the biggest buyer of identity management technology solutions and services. This accentuates the pivotal role of a robust identity authentication mechanism in the BFSI sector. The rapid proliferation of digitization in the different financial sectors, disruptive technological innovations around different services, and everchanging user behaviors are revolutionizing the way in which the institution of this sector interacts with their customers, employees, and other stakeholders. The definition of great consumer experience has widened in scope and includes facets like consumer trust, security, real-time, etc. The traditional identity verification system like passwords, pins, biometrics, facial recognition, etc. are prone to vulnerabilities. Blockchain addresses the lacunas in the present system by using a decentralized approach to transform digital identity. The purpose of this research paper is to study the use of blockchain in digital identity verification, the benefits it brings to identity management, and different techno-commercial use cases. This paper will also examine the zero-knowledge proof and the role of cryptography. For this study, a case study technique was used, in which different use cases of blockchain for digital identity management in the BFSI sector have been analyzed. Academics, practitioners, and government officials will benefit from the research article in investigating, implementing, and developing solutions for digital identity verification using blockchain.