Goode Intelligence trend report predicts distribution of 3 billion digital identities by 2025
Goode Intelligence expects more than three billion digital identities to be distributed by 2025, according to ‘The Digital Identity Report – The Global Opportunity for Verified Citizen & Consumer ID’ which looks into top digital identity trends over the next years, the organization announced.
The report analyzes the global digital identity market based on Centralized, Federated and Self-sovereign identity models, and credentials issued and managed by governments such as Digital Driving License, Travel Digital Identity and Digital National ID, and commercial companies in Financial Services, Telecommunications Providers, Healthcare Providers, and Technology Providers.
Significant trends noted in the report are the high interest paid by governments in issuing digital identities not only as an addition to physical identity documents and cards, but as an identity credential in its own right, used in government services or to verify age and identity in commercial activities such as purchasing alcohol or access to adult content.
Two notable technologies used in digital identity services by both government and commercial operatives are mobile and Distributed Ledger Technology (DLT)/Blockchain.
According to Alan Goode, founder and CEO of Goode Intelligence and author of the report, the current landscape shows signs pointing to the growth of not only DLT/Blockchain digital identity, but also systems developed on Self-Sovereign Identity (SSI) principles. Goode forecasts that by 2025, DLT/Blockchain technology will stand behind 20 percent of digital IDs, up from 5 percent in 2020.
“Looking at the development of digital identity across the globe for verified and citizen and consumer ID, there will not be one identity to rule them all. Rather there will be networks of identity schemes, some connected, others not,” explained Goode. “There will also be collaboration between mutually interested parties such as banks, governments and telecommunications providers. Large technology and social media network providers are also developing digital identity systems that can be used to offer hyper-personalized services to their billions of users around the world.”
Goode further adds that a significant boost will be noticed in the deployment of identity networks across economic and political jurisdictions leveraging collaborative models, mostly banks and telecommunications.
“For the short-to-medium term, these schemes will mainly operate in single states or economic unions – as we have with the BankID schemes in the Nordics,” he says. “Longer-term, a combination of regulatory support and adoption of identity technology standards will enable these schemes to break-out of their silos to support greater levels of interoperability. This is dependent on the economic and political will of both commercial organizations and the state.”
The full 230-page report, including interviews with organizations providing technology and solutions for digital identity, can be reviewed here.