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Utilization of Decentralized ID Based On Blockchain and Humanitarian Assistance in Developing Countries

What is Blockchain? 

Blockchain is called distributed ledger system innovation. This technology has unique features that enables people to prevent any fraud and tampering of the data, and continuously record the fair transaction history on the chain consistently. Thus, it is possible to efficiently and swiftly deliver the reliable transaction across national borders. Lots of people may link blockchain and cryptocurrency straightaway, however, blockchain can be applied to other than cryptocurrency and is expected to use in various fields in the future. 

What is self-sovereign identity?

There is a movement to establish the system that blockchain based platform issues digital IDs and provides people with self-sovereign identity. The specific central authority holds the information of identity in the traditional system, therefore, there is no end to the incidents of personal information leakage. The self-sovereign identity is the concept that users themselves control their own data without depending on the specific central authority.

Importance of identity (ID)

You are yourself from birth, therefore, you do not need anyone to provide you with an identity. However, no valid identity means no existence. Moreover, if your identity is not confirmed, your existence is not proved and you are not entitled to any rights.

We take it for granted that we have a birth certificate, a proof of address registration and a passport is nothing special, and anyone can open a bank account and have credit cards by presenting these IDs.  

However, there are some 1.1 billion people including over 20 million refugees who do not have any formal ID and they are unable to access not only bank services but also basic services such as medical and education. This is a human rights issue. UN sets the goal of “providing Legal Identity including birth certificate for All by 2030 (ID2020 Alliance)” in the Sustainable Development Goals

In order to achieve “ID2020 Alliance”, UN organizations, NGOs, governments and companies are working together to investigate, develop, and introduce blockchain technology.

Microsofts commitment

One of the companies that collaborate with this project is Microsoft Corporation. Microsoft and Accenture are jointly working to establish the blockchain based digital ID system for ID2020 using a biometrics system and ID technology since 2016. The biometrics system that distinguishes individual by combing the biological information, such as finger prints and iris scans has been already used to register for 1.3 million refugees from 29 countries including Asia, Africa and around Caribbean. However, they believe that by improving this system, it is possible to eliminate duplicate application attempts.

If this system was successfully established, the refugees who do not have any documents currently will be able to whip out a phone or other device to quickly show who they are. For example, refugees can prove that they are from a refugee camp and eligible to receive the support when they are crossing a national border, and they can prove their academic history using the ID system when they are ready to receive education in a new country

Blockchain technology which provides crucial privacy and security features are implemented in this new ID system­­­.  Thus it reduces concerns about the system being abused by oppressive governments that the refugees are trying to escape from.

Microsoft says that it is necessary to create the system that enables users to keep and control their identity information (self-sovereign identity) to reduce the incidents of personal information leakage. Cryptography processes, encryption and decryption of data, ensure that organizations who gained an authorization from the user, such as hospitals and schools can access user’s personal information, and record and share the necessary information, however, they are unable to access other information.

Digital ID and self-sovereign identity will be not only used to support people who do not have any documents to prove who they are including refugees, but also can potentially become appealing to people who do not have any issues with their IDs.

Coca-Cola Company eliminates forced labor issues by using blockchain technology

According to the World Bank, there are 1.1 billion people who do not have public identity cards, and these people are vulnerable to human trafficking because they are beyond the government control. According to a survey by the International Labor Organization, in the year of 2016, more than 40 million people worldwide are victims of forced labor called “modern slave labor”. In addition, it is reported that about a quarter of them are children, and 47% of the total live in Southeast Asia.

Under these situations, experts in cryptocurrency technologies and social entrepreneurs are trying to apply blockchain technology in areas such as supporting socially vulnerable populations. 

According to the International Labor Organization, Coca-Cola Company, the world’s leading company introduced blockchain technology to create a secure worker register under the cooperation of the US State Department and the blockchain company Bitfury Group and Emercoin, and they will promote efforts to reduce 25 million forced laborers worldwide.

This time, Bitfury Group will build the blockchain platform for this project, and Emercoin will provide the blockchain service.

Bitfury Group, an American technology company, has developed Crystal software that will allow users to detect criminal activity that takes place on the blockchain this year, and it can avoid interacting with coins that related to illegal transactions, Bitfury Group explained.

Emercoin is a platform that provides decentralized authentication services for individuals and enterprises, which has high reliability and confidentiality, encrypts transmitted data. No one can steal the user’s identity or use impersonation by making it much more difficult for someone to get the root certificate key.

The Coca-Cola Company announced that by 2020, they will roll out the investigation in relation to forced labor, child labor and land rights in 28 countries, especially in the process of supplying sugar.

Forced labor in the beverages and food fields is frequent. There is a data that especially in Asia, the producer of sugarcane, accounts for approximately half of forced labor.

The environment of those forced to labor is bad, there is no contractual relationship with the labor supervisory authorities. Therefore, it is essential to secure the rights of workers. With the application of blockchain technology, it is possible to manage and protect the labor content of workers such as government and enterprises employees. This can prevent illegal activities of forced labor while securing the rights of workers.

In addition, by developing blockchain technology not only the Coca-Cola company but also as the one of national initiatives, other companies in the beverage or food field will be also expected to create similar movements, and a series of events promoting future compliance.

Conclusion

Our Wrappy project enables people whose existence are not recognized in the current era to establish their existence in this world by providing people worldwide with identities.

It is expected that Wrappy project creates a fair platform where everyone can connect equally, discover opportunities, and find work and business partners beyond the national boundary, and that leads to their success.

References

https://id2020.org/partnership/

http://fortune.com/2017/06/19/id2020-blockchain-microsoft/

https://www.fashionsnap.com/article/2018-02-19/microsoftid/

https://www.reuters.com/article/us-blockchain-coca-cola-labor/coca-cola-u-s-state-dept-to-use-blockchain-to-combat-forced-labor-idUSKCN1GS2PY

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