Online identification is becoming more and more critical. It enables us to access our various personal and professional accounts. It allows you to access it without remembering many passwords. It’s likewise necessary for our day-to-day moves.
From signing into our online banking to making purchases online, online identification technology has been widely used. Now, it is slowly crawling into the world of NFT as it grows.
In this article, we explore the future of online identification and discuss the growth of NFTs.
What is NFT?
“Non-fungible token” is referred to as NFT. A fundamentally simple definition of an NFT is a digital asset that links ownership to particular physical or digital assets. These assets like artwork, real estate, music, or videos. NFTs are collectibles of the present day.
What is Online Identification?
Online identification is the process of verifying the identity of a person online. It uses biometric data such as fingerprints, facial recognition, or iris scans.
Online identification systems can be used for authentication purposes in various settings. It includes online banking, e-commerce websites, and social media platforms. They are also frequently used for employee screening and fraud prevention.
One of the most common online identification systems is for secure user registration on websites. When someone registers with a website, they must typically enter their name, email address, age, birth date, and other personal information.
However, oftentimes, there’s a loophole. There is no definite way to determine if the user entered their correct date of birth and age. Unless of course, you ask for a personal identification card.
Since many websites and apps failed to ask for IDs when you sign up, minors end up creating an account in a website or application that they aren’t intended to be in. However, this issue was solved by online age verification software tools.
Online age verification software is a type of security software. It allows you to ensure that the given age range approves your user account on an online platform. Most use biometric data such as fingerprint scans and facial recognition technology to verify someone’s age.
There are several different online age verification software options. That you can use to ensure that your website is only accessible to those over the legal age.
Online Identification’s Future and the Development of NFT
Online identification is on the rise, and it has many benefits. In this writing, you will learn about the development of NFTs. Also, how they can help online identification become even more secure and user-friendly.
A digital identity develops naturally due to how personal information is used online. Also, the shadow data the user’s online activities produce. For instance, a pseudonymous profile connected to the device’s IP address.
The below data points can all be used to assist create a digital identity:
- Usernames and passwords
- Driver’s license numbers
- Online purchase history
- Date of birth
- Online search behavior
- Medical history, and others.
Three modalities—biometric, behavioral, and biological—combine to form a person’s identity.
What is a Decentralized Identity?
A trust architecture for identity management serves as the foundation for decentralized identification. It allows users to build and handle their online identity independently of a particular service provider.
For instance, digital identities are maintained in a digital wallet known as an “identity wallet.” It can receive clearance from many issuers, like a company, a government, or a university. The user can provide identification documentation to any third party using their identity wallet. The wallet makes identity information more available by enabling users to grant and revoke access from a single source.
According to Forrester, a decentralized digital title is not a stylish term in technology. It claims to restructure the physical and digital identity ecosystem completely. A decentralized and democratized architecture currently controls it.
Addressing the Identity Verification Issue
The actual game-changer is security on the blockchain. It is giving the issue of online identity verification a much-needed solution.
NFTs are perfect for identity verification since they use the same technology. That technology makes them suited for establishing ownership rights. Online impersonation is a constant threat to organizations and individuals as technology advances. It also identity ownership is becoming more and more crucial.
Cybercriminals today can steal passwords, forge passports, and even hack biometric data. Your digital identity will probably need to be even more secure in the future than currently recognized documents.
NFTs in the Metaverse
The Metaverse is a trendy issue, and Facebook’s name change only heightened interest in Meta in November 2021. Although frequently discussed, the term has not yet been sufficiently defined. The Metaverse is a virtual world that combines augmented and virtual reality. It is to produce an immersive three-dimensional experience.
On Decentraland and Sandbox, two of the largest metaverse platforms, the smallest slice of land you can purchase today costs almost $13,000. Due to the principles of supply and demand, virtual land has previously sold for as much as $4.3 million. The expenses increase as a result of absence.
The adoption of the Metaverse is still only modest. Prices are anticipated to rise as adoption rates continue to increase. It is because the virtual real estate market is just starting.
Thankfully, it is precisely what NFTs are made to achieve. NFTs are used to furnish and outfit virtual avatars and verify ownership of the virtual real estate.
NFTs Are Here to Sustain
The NFT market blasted in 2021 and is now valued at more than $15 billion. Investors profited from the boom, and NFTs alone was responsible for almost $5 billion in profit. Digital artwork NFTs have just sold for nearly $90 million.
The Netherlands’ historical boom and bust of “tulip mania” during the 17th century. Where increasingly exorbitant prices and market saturation rendered the product essentially worthless. The critics have compared the current bubble and how it will break. But, since the sale of digital art is only one application of NFT technology, that is not always how NFTs turn out.
Beyond digital art, NFTs are used in the real world. That has been evident since 2019 when guests at the NFT.NYC conference. A gathering devoted to advancing the NFT narrative was given entry through a ticketing system managed by the NFT.
NFTs in the Metaverse is a different matter. They have a specific function and are crucial to developing the new virtual world’s economy. They might promote adoption even outside the Metaverse.
The distinctive, unchangeable nature of NFTs is maintained via blockchain technology. NFTs are perfect for establishing ownership rights for digital concert tickets and other immaterial goods. It might assist in reducing the recent increase in online ticket fraud.
These are some of the important announcements about the future of online identification and NFT’s growth. What emerges as a clear trend is that there’s high potential for using blockchain technology to create more powerful and secure tools such as digital identities.