Identity theft has seen consumers lose more than $16 billion dollars annually. Even though most financial solutions will alert users of fraudulent transactions, it has never stopped fraudsters in the past. As such, organizations are demanding more data from the clients in order to reduce the cases of identity theft. This move has not been helpful because clients prefer to withhold their personal information. According to Paul Mampilly, blockchain can eradicate this problem.
Paul Mampilly wrote an article on Banyan Hill Publishing. In his opinion, blockchain security would protect internet users and investors in general from identity theft and fraud. Mampilly tells the story in the line of motor vehicles when he was just renewing a driver’s license. He spent his day in the office waiting for the renewal to be done. In his story, he highlights how saddening it is for people to always wait for their renewals especially when the office is still closed.
With the need to support his sentiments on blockchain and its benefits to online investors, Mampilly says that getting a driver’s license takes ages because one has to produce a passport, an identity card, and a birth certificate. In essence, this is complicated because people need to come up with approved identity cards including a proof of address. Other people might have lost these documents. Therefore, renewing their driver’s license is impossible in such instances. Also, the process can be quite expensive because there are fees involved. Mampilly proposes the possibility of time saving by proving a person’s identity in a different way. That is where blockchain security comes in.
Blockchain is a record of data that uses electronic devices. Every collection of this data is appended to a block. Many blocks become a chain. But, for data to be included to the chain, it must be relevant and valid for use. This explains why blockchain is secure. The information is also copied to different locations. Therefore, if someone was to add erroneous information, the alteration would be detected.
Even though Paul Mampilly covered a few details of the entire content, he is convinced that the blockchain technology is the next big thing when it comes to ending identity theft. Paul Mampilly is an investment expert and a portfolio manager. He works at Banyan Hill and is well versed with technology and its benefits to the world.