Fujitsu Laboratories has revealed it is building a digital identity exchange to verify identities in online transactions.
Its new technology is based on decentralised identification leveraging blockchain to analyse the risk of falsification and trustworthiness of other party’s personal credentials when users conduct online payments. The platform achieves this via a mutual evaluation of the users when the transaction is initiated and by inferring the relationships between the users based upon historic transaction data.
The company hopes its technology will help consumers and businesses feel more safely when using online services. Its identity system will also be offering user-friendly features such as graphics to visualise the relationships between users and a unique trust score, to further this feeling of security.
Its system works by generating the trustworthy transaction data from establishing evaluations on consumers based on their reputation and rating. These are stored on the blockchain and can be used to generate insights on trustworthiness of users.
This trustworthy transaction data is converted by the system into a graph structure which depicts the relationships between users. A score is attached to all users and weighs in factors such as how many trusted users have rated them highly. The system can show if relationships are not as honest as others.
Only the users can have their credentials verified and only partial disclosure of relevant data is made to better safeguard personal details.
Moving forward, Fujitsu will continue to develop its digital identity exchange technology and will begin to conduct trials with the finance industry first for testing. The company is hoping to implement the technology during the 2019 fiscal year.
Identification/background checks has been one of the biggest spaces within the RegTech space. RegTech Analyst data shows that of the 164 RegTech deals to close last year, 19 per cent of these went to companies in this space.
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