In an age where cyber threats are becoming increasingly sophisticated, the management and verification of digital identities are at a critical juncture. As various sectors rapidly evolve, decentralised identity (DCI) systems emerge as a revolutionary approach to managing and verifying user identities. These autonomous systems promise to change how we access and use online services. However, many organisations need help with adopting this promising technology.
A recent survey by Ping Identity, which included responses from 700 IT decision-makers worldwide, highlights these challenges. In the UK, 82% of IT decision-makers see value in decentralised identities for their customers and employees, yet only about a third (34.5%) currently offer this option. A significant reason for this gap is the need for more clarity about the benefits, with 31% of respondents unsure what advantages decentralised IDs would bring.
Additionally, nearly half (46%) indicate that better training and education on DCI are needed to encourage wider adoption. These statistics reveal substantial gaps in the UK’s cybersecurity strategies and underscore the potential of DCI to enhance organisational defences.
This article explores the current use of DCI, the benefits and roadblocks to its adoption, and the steps organisations can take to mitigate associated risks. By examining these elements, we can better understand how DCI can play a critical role in future cybersecurity strategies.
The current state of DCI: adoption and benefits
Decentralised identity gives individuals control over their digital identities without relying on a central service provider. Though nascent, this concept is gaining traction. One notable example is the mobile driver’s license movement in the US, where a digital version of a traditional license is stored on a smartphone and can be updated in real-time. This approach exemplifies the potential of digital identity wallets to enhance user privacy and control.
The benefits of DCI are vast. It allows for improved privacy management, as users can control who has access to their personal information. Additionally, decentralised identities can open new marketplaces in data, potentially enhancing services such as emergency healthcare. Despite these advantages, adoption still needs to grow. The success of DCI though depends on identity providers’ willingness to shift towards a user-centric model and educate users about its accessibility, safety, and trustworthiness.
One significant roadblock is the perception that DCI is difficult to implement. Organisations often need clarification about the specific benefits and may require more training to adopt these systems effectively. For instance, 46% of UK businesses recognise the need for better training and resources to implement and leverage DCI. This lack of understanding is a critical barrier to broader adoption and must be addressed through comprehensive education and support.
Addressing the risks, opportunities and trends in DCI adoption
Adopting decentralised digital identities involves several risks which must be carefully managed. Ensuring a secure and seamless system requires a holistic approach to integrating identity management for governments with traditional identity access management (IAM) systems. Organisations must take a clean hygiene approach, ensuring data connections are robustly embedded within their IT infrastructure.
Furthermore, adopting DCI necessitates fundamentally rethinking how companies handle personal data. Getting buy-in across the business is crucial, as 44% of respondents feel increased demand for DCI from executive leadership, customers, and partners would drive greater adoption. This shift requires a concerted effort to communicate the value of DCI and align it with broader business goals.
Another critical aspect is regulation. The survey indicates consumers believe more apparent regulation is necessary to facilitate DCI adoption. Ensuring regulatory compliance can help build trust and confidence among users, making them more likely to embrace decentralised identities.
Globally, businesses recognise the importance of ramping up their cybersecurity budgets to combat AI-related threats and enhance identity security measures. Approximately two-thirds of organisations surveyed plan on increasing their investment in fraud protection over the next year. However, this trend is expected. For example, companies in the UK and Germany are less likely to prioritise budget increases in identity-based security than government organisations.
The future of decentralised identity
The potential of decentralised identity systems to enhance security, privacy, control, and usability is immense. However, realising this potential requires addressing significant roadblocks, including better education, more apparent regulation, and comprehensive integration strategies.
As we look to the future, DCI can play a pivotal role in mitigating AI cyber threats. By empowering individuals to control their digital identities and reducing reliance on centralised service providers, DCI offers a more secure and user-centric approach to identity management. Organisations must prioritise investment in education and infrastructure to overcome the current confidence crisis and previously mentioned strategic gaps.
With the proper support and resources, decentralised identity systems will become a cornerstone of modern cybersecurity strategies, ensuring robust protection in an increasingly digital world.
Alex Laurie
Alex Laurie is Senior Vice President at Ping Identity. With over twenty years of experience in security and identity technology, Alex has been involved with digital transformation on both the vendor and system integrator side, working alongside government departments, the military, multiple police forces and the banking sector.
