Paul Mampilly wrote in one of his recent financial newsletter articles that he thinks blockchain technology can be critical to stopping identity theft. He started out the article sharing his experience at the Department of Motor Vehicles. He had to renew his driver’s license and ended up spending hours sitting in a little plastic chair while waiting his turn.
He relayed how even if you get to the DMV before it opens you are going to be spending your day there. Getting any government document is a lengthy process. Whether it’s a replacement social security card, a birth certificate, or renewing a passport one of the biggest costs is your time. Paul Mampilly thinks there’s a better way that will eliminate paper identification altogether.
In order to prove you are who you say you are, it is necessary to provide the government with information such as proof of where you live, an ID card, and other information that you need to collect. Paul Mampilly says blockchain can be used to have all of this information readily available in digital format. People won’t have to carry around driver’s licenses, passports, and other forms of ID.
The invention of blockchain is credited to Satoshi Nakamoto. This is a pseudonym and no one knows who this is. He created this technology in order to revolutionize online payments through the use of digital currencies. This technology is now being used in many ways that don’t have anything to do with currency. Paul Mampilly says that blockchain will probably last longer than digital currencies do due to its versatility. Follow Paul Mampilly on his twitter account.
Paul Mampilly says that blockchain allows people to spread information while at the same time keeping it secure. He explains it by writing that you should imagine a code that is protecting your PC. You can hide it well but if a hacker gets access to your pc they will quickly be able to see all of your data. However, if the code is instead spread out on thousands of other PC’s the hacker won’t be able to get at it. This is why blockchain could put an end to identify theft.