Growing popularity of digital identity. Is it the end of cookies?

Technological progress causes digitization to penetrate more and more aspects of our lives even outside the online world. Numerous technologies and innovative gadgets accompany us in everyday matters, gathering a lot of information about our preferences and behavior.

With the growing problem of data security, the popularity of digital identity is increasing as well. It is a universal method of identity authentication that facilitates the user’s communication with other entities online, including companies and institutions. Digital identity protects the user’s personal data and provides access to websites without the need to set passwords. This not only makes it easier to navigate the web but also reduces the risk of accounts being hacked.

The role of blockchain in digital identity

Digital identity is one of the applications of blockchain technology that reduces the risk of data change or falsification due to the fact that the authenticity of the information in the blockchain network has to be "confirmed" by other users.

In addition, blockchain allows anonymity on the web. People who have several accounts even within one website want to hide some or all of the information about themselves. Creating an email address for registration takes a few minutes, and users don't even have to provide any documents to verify their identity. In addition, by creating an account on any website, the users set a login and password that authorizes them. However, there is no mechanism that could check if the one who logs in to the site is the same person who created the account. All that has to be done is enter the correct username and password combination to access the account and all data stored there.

While using a digital identity, users do not have to go through the registration process and can decide who has access to their data. Besides that, digital identity in blockchain technology allows access (or also blocks it) to websites or services depending on the user's rights. For example, a minor will not be able to enter the age-restricted website or the foreigner will not receive a travel authorization without having specific documents (visa or passport).

Digital identity thanks to blockchain combines into one all information related to the user's activity in the network together with important events and changes taking place in offline life.

The impact of digital identity on cookies

In 2019, Apple and Firefox limited the ability to collect data by tracking cookies used by companies to target ads. In addition, Google has made changes to its browser so that users have easier access to settings for tracking cookies, including what information they can collect.

Restrictions on cookies make it more difficult for companies to gather data on Internet activity for creating ads. In the case of Apple and Firefox, this may not be so noticeable, but Google Chrome covers 63.6% of the browser market, so limiting cookies may result in the lack of data of a large number of users.

On the other hand, digital identity is a better source of information for advertisers because it refers to the general activity of people, even related to offline behavior. In addition, each mobile device has its own ID number that helps mobile apps to communicate with servers. In the digital identity, the ID allows recognizing to whom the devices belong along with the data they collect. Thanks to this, advertisers have access to more expanded information to create more targeted messages.

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