Fujitsu Laboratories, of Japan, has come up with a new “digital identity exchange technology” for making the process of online transactions much more secure.
This is a blockchain-based solution that is meant to allow individuals and businesses conduct online transactions that help them confirm whether the identities of the other parties are legitimate or not. Moreover, the tool also helps users make sure whether the credentials provided are credible.
Explaining the tool in a press release, the company wrote:
“A trustworthiness score is attached to each user by weighting factors including how many trusted users evaluate them highly. Even if a user colludes with a third party to improperly raise their evaluation, the graph-structured relationships will reveal information such as the weakness of their relationships with other users, giving the system the potential to identify misrepresentations.”
The technology will evaluate the credentials of both the parties involved in a transaction and will also look at data of past transactions to find linkages. It will also examine their transactional relationships with other parties. Basically, it will develop a rating system that assigns a score to each party based on a thorough evaluation.
These ratings will then be listed on a distributed ledger. This will supposedly help to make sure that more online services can be rendered and payments made, with more secure transactions in place. The tool will also have several user-friendly elements like graphics which help you understand user relationships visually.
Fujitsu clarified why such a solution was necessary in the first place. It wrote:
“With reports of fraud and instances of people falsifying personal credentials like work history and professional qualifications growing increasingly prevalent, ensuring the circulation of high-quality, reliable identification data poses an urgent challenge to users and businesses alike.”
This tool will hopefully help create more transparent and secure online transaction systems and eliminate the risk of crypto scams as far as possible.