Blockchain digital ID breaks through digital transformation barriers
4 min readNov 9, 2020


Explore three challenges of current Identity systems. How digital transformation can be disrupted by blockchain digital ID?

What today’s ID management systems have in common is that they encounter wholesome skepticism and concern from the Government and identity owners’ privacy advocates. The topic of digital ID is becoming more sensitive than ever.

A 2019 Deloitte research has revealed many challenges of existing digital ID management systems. However, these challenges create an opportunity for the blockchain Digital ID to accomplish unprecedented things.

  • Three challenges of current Digital ID management system
  • More pressing security concerns are taking over for companies’ CIOs:

It’s not that leaders are indifferent to digital identities, but they need to fulfill more urgent goals of return on investment or focus on cybersecurity measures. Today’s digital identity and systems management projects, on the other hand, require a lot of time and dedication to implement.

Deloitte’s survey data show that current executives are spending only 10–20% of their budgets on digital ID solutions even though they know this is a critical goal in their long-term development goals.

  • Outsourcing identity management is causing inescapable concern for companies:

Cybersecurity leaders understand that they need to be extremely cautious when using an outside organization service to manage their corporate identity system. Although cloud-based identification and outsourcing of identities through third-party access like Google or Facebook shows convenience, the number of people choosing these two options is still relatively modest. According to Deloitte data in 2019, only 24% of the companies participating in the survey chose IDaaS, and 32% prefer to outsource an identity.

These companies are still concerned about integrating their systems with external systems. What these companies need are solutions that satisfy both requirements of security and the ease to integrate online solutions. Otherwise, they usually prefer on-premise solutions.

  • Challenges and compliance with global privacy and data privacy regulations are putting pressure on companies:

Because of persistent data scandals for identity management services around the globe, governments are exploring and implementing more regulations to protect user’s privacy, personal data, and digital identity. Deloitte’s report also points out many rules related to identity management that force operators to pay attention, such as the EU’s General Data Protection Regulation (GDPR), the Consumer Privacy Act applied in California (CCPA) or Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA).

These laws require executives to pay special attention to data security issues. They need to take a more holistic view of consumers and what has to do with these identities to comply with laws and audits.

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  • It’s time to navigate your resource on blockchain digital ID

Blockchain technology can solve the difficulties of CIOs to develop effective digital ID systems while ensuring technical integration and data security and privacy requirements.

Blockchain digital ID solutions use the hash algorithm and consensus protocol to ensure that the data stored on the blockchain is immutable and nearly invulnerable. Control of identity data is given back to the user so that they control and decide on the sharing of their data. To ensure security, storing data on the blockchain also has specific changes to the data that will be maintained on the blockchain.

To provide customers with a full-featured digital ID solution while improving integration with the company’s existing systems, blockchain platform akaChain chooses to develop blockchain towards BaaS (Blockchain-as-a-Service). Our service solution offers built-in SDKs that can run on any Cloud or work on-premise if the company prefers this way.

Thus, akaChain’s blockchain digital ID solutions help businesses access identity management systems with more optimal features.

The potentials of blockchain for digital ID management cannot be ignored. In the current phase of digital transformation, CIOs need to focus more than ever on new technologies that have the potential to make disruption for their businesses.

As one of the government’s trusted platforms for national digital transformation, akaChain set our sight on popularizing further the benefits and applications of blockchain technology in the digital world.

We are welcome to initiatives aimed at building better management and business solutions from you. Contact us or leave us your information, and we will reach you as soon as possible.

About akaChain

akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since Establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit

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