5 Signs The Digital Identification Economy Is About ToExplode 

There's a lot of noise out thereabout blockchain and its potential for growth. That's why what I'm about to tell you is so exciting. You see, the market for digital ID is predicted to reach $2.3 Billion by 2023 which is lower than predicted but isn't that cool?


What defines digital identification? It can take many forms: electronic passports and identity documents, virtual ID cards and passwords, hardware-based devices including USB tokens, smartcards and biometric data such as facial images and fingerprints, smart phones and tablets, software applications such as smart contracts to facilitate identification. These everyday interactions over the coming years will mean an increased role for digital ID that promises transformation of both the market and daily life. 

The UK is trailing other countries on the subject of digital identification. The Department for
Digital, Culture, Media, and Sport (DCMS) released its updated digital identity trust framework in September 2021. The framework, which consists of standards, guidelines, and best practices, aims to clarify the creation of an ecosystem of digital ID systems that may be used in both the public and private sectors. 

For digital ID to be a success, public-private cooperation must be successful. A successful relationship
between the sectors will be essential to fast deploying a UK solution and igniting the economic recovery because McKinsey reported that digital ID could unlock economic value in the UK equal to 3% of GDP. 

5 Signs that Digital ID Will Take Off By 2023 

1. Latest Privacy and Security Measures Will BoostGrowth of Digital Identification 

The main task facing publicauthorities over the next two years will be establishing harmonious digital
linkages that safeguard the interaction between new mobile identities and the larger society. Only a broad foundation of trust based on assurances of data security and privacy can create this link. 

The steps taken to combat fraudand strengthen security were generally highly received by citizens between 2018 and 2021. Of course, these are supremely sovereign affairs, and the growing
need for trust in all interactions between public authorities and citizens will be met by robust security measures. 

Businesses will likely strengthentheir current technology and security infrastructures in 2023 to better handle the security issues posed by remote worker personnel. As a result, you will notice the drastic implementation of a digital identification system in 2023. 

2. Economic Value Plays Major Role in theImplementation of Digital Identification  

We discover that assuming highlevels of adoption, a digital ID can provide economic value in 2030 that is equal to 6% of the GDP in rising economies on a nation-by-nation basis and 3% in mature economies. Even with a simple digital ID with the bare minimum of features, a significant amount of value might be collected in emerging economies.  

It is necessary to havesophisticated digital ID programs with data-sharing features in mature economies because many procedures are already digital, and there is less room for improvement. We calculate that of the potential value, individuals may receive around 65 per cent in emerging nations and about 40 per cent in developed economies. 

The UK government has unveiled a comprehensivedigital strategy to coordinate and concentrate efforts on the £150billion UK digital economy

The UK’s Digital Strategyoutlines goals and the steps necessary to make digital identification a
reality. According to estimates commissioned by the government, our strategy for promoting and bolstering the digital economy may increase the gross value added (GVA) of the UK IT sector by an additional £41.5 billion by 2025 and generate an additional 678,000 jobs. 

3. Payment Wallets Increases the Shift to PaperlessTransactions 

Covid-19 had a significant rolein introducing hybrid work environments where people work from home throughout the globe, contactless payments, and remote business models. Since then, the web and e-commerce industries have prospered, and online payments are becoming more popular. Based on experts’ calculations using the data, payment wallets have grown to be the market's most valuable category, with a CAGR of 15.4% and a value of about $101.67 billion. Hundreds of entrepreneurs are inventing in this market, but Google and Apple compete to be significant players. 

For offline transactions, littleover one-thirdof UK consumers utilise digital wallets. Digital wallets can be used practically anywhere now that contactless payment is accepted in most stores, eateries, vending machines, transportation systems, etc. 

By 2023, according to Accenture,11.6 billion UK transactions would switch from cash to cards and digitally. In the UK alone, this may be worth up to £155 billion. If customers switch to online shopping and mobile wallets instead of making in-person purchases, this could have increased to more than 50 billion transactions valuing more than £484 billion by 2030. 

4. Access to Fast Internet will Streamline theImplementation of Digital Identification 

ID is swiftly going digital andwill continue to move around more. (What is the clear sign/data showing this?)Of course, everybody can see that we have entered a time when mobile usage and connectivity predominate. But it's important to emphasise that the tendency is still going strong. And there are significant ramifications for the digital ID.
Global Internet access has becomemuch simpler due to government initiatives, significant expenditures made by telecom companies, and declining subscription and phone pricing. The adoption
of smartphones is skyrocketing globally simultaneously, creating the ideal conditions for the practical introduction of mobile-based digital identities. 

The infrastructure required to supportthe service fully has yet to be deployed, despite networks continuing to roll out 5G throughout the UK. As a result, a real 5G experience will not be available for some time. Wi-fi6 and 6E will be quickly adopted as SMBs and consumers attempt to close the connectivity gap as the need for faster speeds and lower latencies rises. 

5. Advancements in Biometric Systems will Secure Digital Identification Data 

Customers will enjoy a betteruser experience while also having their credentials more securely protected thanks to technology, which enables them to do away with passwords. The value of biometrics, in general, is increased by the growth and popularity of passwordless authentication. 

Expect to see a rise in the useof biometrics in the authentication process as more businesses adopt passwordless authentication. Companies can benefit from utilising contemporary hardware to replace passwords and usernames when combined with public-key technologies. 

Facial recognition for mobilepayments will become much more feasible and widespread in the UK as consumer electronics become more readily available. JuniperResearch has discovered that between now and 2025, there will likely be atwo fold increase in the use of facial recognition for safe payments. 

Conclusion 

Since so many businesses areonline today, digital identity technologies are expected to be prevalent in most large enterprises. While this topic doesn't require a fully-fledged digital transformation strategy as of yet, it does indicate that certain aspects of your business will need to change. Be sure to start small and understand your options before committing any time or money to a new solution. 

 

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