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EU’s Smart ID Wallet – Paving the Way for a Seamless Digital World

Richard Marley
July 12, 2021
5 minutes read
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A few days back, the European Union Commission published a draft for digital ID wallets for all the EU residents. As of today, only 60% of the residents can use a digital identity across member states. To ensure that every citizen has control over their data, the Commission has proposed a plan for EU digital ID wallets for every resident on June 3, 2021. According to the Vice President for a Europe Fit for the Digital Age, Margrethe Vestager,

“The European digital identity will enable us to do in any Member State as we do at home without any extra cost and fewer hurdles. Be that renting a flat or opening a bank account outside of our home country. And do this in a way that is secure and transparent. So that we will decide how much information we wish to share about ourselves, with whom and for what purpose. This is a unique opportunity to take us all further into experiencing what it means to live in Europe, and to be European.”

What is the EU's Digital ID Wallet Decision?

Also known as the EUid, the digital ID wallet will provide access to all digital services within the European Union. This identity will be verified once and can be used anywhere they want without undergoing the hassles of multiple verifications. The step is all set to revolutionise lives in the future.

Digital ID Wallets – Background

The EU Commission decided to make the European Union contactless. Also known as the 2030 Digital Compass, the proposal sets out various targets and milestones that can be achieved with European Digital ID. For instance, medical records will be available online.

For a digital future, the Commission has built on the existing eIDAS regulation. The law has built the foundation for cross-border electronic identification, website certification and authentication in the EU. Around 60% of the residents are already benefiting from the system.

Digital ID Wallet Framework

Member states will offer residents digital wallets that will link their national identity to proof like driving licenses and bank accounts. Europeans will have full control over their data and the liberty to share information. The Digital Identity Wallet will be available to anyone who wants to use it and anywhere to consume digital services within the EU.

Discover more about our proposal on a trusted and secure Digital Identity for all Europeans: https://t.co/Ik4HA9vDCq

Follow → @DigitalEU
#DigitalEU #EUdigitalidentity pic.twitter.com/rEwa7L6mmF

— European Commission 🇪🇺 (@EU_Commission) June 3, 2021

Digital ID Wallets – Discussing a Use Case

The Digital ID Wallet can be used for any of the following:

Opening a bank account
Applying for a bank loan
Filing tax returns
Requesting documents like birth certificates, marriage certificates, reporting a change of address, etc.
Applying to a university
Requesting medical records
Renting a car
Hotel check ins

Let’s take a look at how opening a bank account will get easier with Digital ID Wallet.

Generally, opening a bank account has several steps. First, the end-user has to register for the account. Then, the bank requires certain identity documents for verification. Next, is the verification process that takes a while if the financial institution is following conventional procedures. In case the end-user has submitted the wrong document or missed a detail, the hassles for repeating the entire process are unbearable.

On the contrary, the Digital ID Wallet can overcome such challenges. All the documents will be saved in the individual’s wallet. The individual has to do is register for the account opening process and select the required documents. Since the documents are verified, it is not necessary for the bank to verify them during customer onboarding. The bank securely receives these documents and carries out the rest of the account opening process.

A Sneak Peek into the Benefits of Digital ID Wallets

For both businesses and individuals, the benefits of Digital ID Wallets are infinite. Let’s take a look at some of them:

	Businesses	Citizens
eID	Customer base will expand with a reduction in costs. Building trust in cross-border transactions will be easier	Opening bank accounts in different countries will be seamless
eSeal	Streamlined procedures. Promote trust in the document origin	Guarantee that concert tickets bought online are legitimate
Web Authentication Certificate	Protect business reputation and prevent cyberattacks	Individuals will know that the website is trustworthy to share information
eSignature	Help innovate business procedures	No paperwork required

What’s Next?

The Commission will work with the EU member states along with the private sector regarding the technical aspects of the EUid parallel to the legislative process. The Commission will support European Digital ID framework implementation. Furthermore, many member states of the EU have started working on the implementation of e-government solutions, including the EU Digital ID Wallet.

In a nutshell, the Digital ID Wallet will have all the verified documents in one place, making it easier for not just individuals but businesses as well. Apart from convenience, cost reduction and streamlined procedures are some other benefits of EU’s Digital ID Wallet.

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Disclaimer: No warranty is herein provided that the information contained in this document is accurate, up-to-date, and/or complete. In no circumstance(s), does such information constitute legal or any other advice. Any person who intends to use, rely, pass-on, or re-publish the information contained herein in any way is solely responsible for the same. We suggest to verify the information and/or obtain expert advice independently if required.

Latest News

News
Blockchain and NFTs - Setting New Standards for Cybersecurity and Identity Management
What is the EU’s Digital ID Wallet Decision?
Digital ID Wallets – Background
Digital ID Wallet Framework
Digital ID Wallets – Discussing a Use Case
A Sneak Peek into the Benefits of Digital ID Wallets
What’s Next?
Non-fungible tokens (NFTs) are an evolution over the emerging concept of cryptocurrencies. As finance systems are getting modernized, consisting of innovative trading and loan systems for different types of assets, ranging from lending contracts to real estate and artwork. However, by making digital representations of physical assets like painting, NFTs are the most advanced form right now to re-invention the finance infrastructure. Thus, the idea of representing physical assets in digitized form is not new, however, these concepts are combined with the significance of tamper-resistant blockchain of smart contracts.

Contrarily, blockchain and NFTs are also playing a crucial role in making the digital ecosystem secure, as fraudsters are becoming more sophisticated and are capable of exploiting cybersecurity systems. Thus, by utilizing the potential of blockchain technology and NFTs, an entirely new level of security can be attained.

Blockchain Technology – Revolutionizing Cybersecurity and Identity Management In Digital Ecosystem

Primarily, blockchain technology is the key driving force behind the success and emergence of cryptocurrencies. This technology is completely transforming the concept of payment gateways along with enhancing cybersecurity concerns. Blockchain technology utilizes cryptography to make transactional records that are unchangeable and can’t be tampered with. NFTs are also backed by this technology and are uniquely categorized through a cryptographic token that provides an extra layer of security by ensuring that each digital asset and transaction records are well- managed, easily being tracked and verified. In addition to this, NFTs are also designed to digitally represent physical assets, which has brought significant opportunities for businesses as well as individuals.

NFTs are now also being used to virtual depict something scarce, for example, in-game add-on features and other collectibles. Due to the unique identity of NFTs, they are providing more improving identification measures while enhancing cybersecurity. In addition to this, NFTs and blockchain technology are also empowering digital businesses to develop virtual ledgers to store cryptocurrencies and digital assets while maximizing security levels. However, the combination of blockchain and NFTs is considered the most advanced way of securing sensitive information and holds the necessary power to completely transform the use of the internet and cybersecurity.

Despite the fact, blockchain is the backbone of the digitization of payment gateways, it is setting new standards in the cybersecurity domain as well. By providing financial institutions and other businesses a decentralized platform to secure data, they tend to protect the companies through various cyber-attacks and financial losses. It also allows businesses to gather and maintain track of customers’ identities. Blockchain technology is signifying security innovations through the following aspects;

Security through Blocks: Blockchain basically works as a distributed ledger that stores and maintains a continuously growing list of client data records called blocks. Each respective block placed in the database is accompanied by a cryptographic hash of the previous block, a timestamp, and transaction data. The immutability feature of blockchain technology allows it to provide businesses and individuals with a sound sense of security and data protection. Other than this, it also backs businesses to determine and authenticate their identities before getting them on board and ensures data is not compromised.

Private and Public Blockchains: The concept of private and public blockchain is growing concerned nowadays. A private blockchain allows companies to communicate information without a designated central authority. On the other hand, the public blockchain databases are easily accessible to any individual in the digital ecosystem. However, both types of blockchain databases are highly secure and can not be exploited, as they deliver the maximum level of transparency. As a result, blockchain ledgers are becoming an ideal place to store digital data or assets.

Decentralized Technology: Blockchain technology allows both businesses as well as individuals to store cryptocurrency and private information in decentralized databases with a high level of encryption. With the decentralization feature, blockchain assures that hackers can get access to one’s identity. However, hacking attempts are impossible, as cybercriminals need to penetrate 51% of the blockchain system at once.

Smart Contracts: The emerging concept of the smart contract is getting global attention, as they are powered with blockchain technology that automatically handles the customer’s transactions and other dealings. They have attained customer trust by enforcing high-end security standards by being transparent and tamper-proof. Other than this, the financial firms are also using smart contracts to manage customer identities and PII. This also enables businesses to curb identity fraud.

Influence of NFTs on Cybersecurity and Identity Management

As businesses are going digital, keeping sensitive information secure and tamper-proof is becoming more difficult than ever. However, Non-Fungible Tokens (NFTs) are one of the crucial ways to make cybersecurity and identity management systems secure and unhackable. Many global firms are adopting NFTs to secure their client data.

The following are a few examples of how NFTs can be used to promote cybersecurity:

Integrated Security Features

NFTs aren’t directly used but are combined with other security measures to increase the productivity of cyber security systems. This includes, encrypting the messaging services, and generating digital ownership signatures on transactions. Other than this, NFTs also interact with identity verification services through authentication, to assure the customers are onboarding with legit identities. Despite all benefits, NFTs are also being used to uplift security measures as they are hard to replicate and link to other virtual assets. The cryptographs also improve data protection. Furthermore, NFTs can also provide an extra level of security for businesses and individuals, aiming to secure their transactions or operations.

Smart Encryption and Validation

NFTs come up with a “smart encryption and validation” method that enhances the effectiveness of security systems, making them secure. This system is particularly designed for the businesses that are providing trading services. NFTs smart encryption and validation uplift the identification and security of public as well as private blockchain databases.

Thus, the encryption and validation technology of NFTs is inevitable. It imprints digital signatures to each asset or transaction making it impossible for criminals to replicate it. This is how NFTs are preventing stealing of assets in the digital ecosystem.

How Shufti Pro Can Help

NFTs and blockchain technology are considered as the optimum ways to overcome identity fraud and financial crimes. Proof of ownership and digital signatures ensure that the data remains unbreachable. This concept will allow SaaS providers to enhance online identity verification solutions and cyber security protocols.

Shufti Pro’s state-of-the-art online identity verification services are an ideal solution for every type of business providing digital services. AI-backed ID verification services enable companies to determine the identities of customers before getting them onboard with 98.67% accuracy in less than a second.

Want to know more about the identity verification solution?

Talk to experts

EU’s Smart ID Wallet – Paving the Way for a Seamless Digital World

What is the EU's Digital ID Wallet Decision?

Digital ID Wallets – Background

Digital ID Wallet Framework

Digital ID Wallets – Discussing a Use Case

A Sneak Peek into the Benefits of Digital ID Wallets

What’s Next?

Blockchain Technology – Revolutionizing Cybersecurity and Identity Management In Digital Ecosystem

Influence of NFTs on Cybersecurity and Identity Management

Integrated Security Features

Smart Encryption and Validation

How Shufti Pro Can Help

Top 10 Technology Trends That Will Reshape the Travel Industry

1. Augmented Reality and Virtual Reality

2. Video KYC

3. AI-Powered Identity Verification Solutions

4. Automating Actions with Voice & Robotics

5. Contactless Payments and Self-Check-In

6. AI Chatbot

7. Big Data

8. Hassle-free Experience Recognition Technology Systems

9. Personalizing Passenger Journeys with Wearables & IoT

10. Making Security Seamless with Artificial Intelligence

Final Thoughts

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customer’s identity

with Shuftipro.

Let’s prove your customer’s

identity with Shuftipro.