Blockchain for IAM

Blockchain for Identity and Access Management

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“Blockchain Identity Management offers a secured solution via a distributed trust model”

After the pandemic, society is turning to digitization, which is driving the digitization of identity. The need for identity information is growing rapidly in value, from health information to professional certifications. Before, identity information was monitored and verified by third parties – be it the government or the private sector. But the trust and new tools raise questions about this structure.

The paper-based form of identity is becoming rapidly inadequate in this digital world as the volume of personal data, frequency of digital interactions, and risk of security threats continue to rise. However, it is not clear how emerging technologies will reshape identity.

The blockchain is considered one of the most significant developments in technology and has the potential to remake the world economy from the ground up by transforming and re-imagining the way business is done today.

You must be wondering what Blockchain is. How does Blockchain work? What is Identity and Access Management? How Blockchain bring privacy and security to Identity Management? What are the benefits of Blockchain Identity Management? This blog has answers to all your questions.

Let’s proceed!

What is Blockchain?

Blockchain is a system of securing critical data or information in such a way that makes it difficult or impossible for hackers to hack it or find it.

A blockchain is usually a ledger of transactions that is digital and is duplicated and distributed across the whole network of computer systems on the blockchain. A number of transactions are contained in each block in the chain, and whenever a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.

How does Blockchain work?

A Blockchain is made up of three important parts: blocks, nodes, and miners.


Every chain is made of various blocks, and each block has three general objects:

  • The data in the block
  • A 32-bit whole number is called a nonce. The nonce is randomly generated when a block is created, which then generates a block header hash.
  • The hash is a 256-bit number wedded to the nonce. It must start with a huge number of zeroes (i.e., be extremely small).


Through a process called mining, miners build new blocks on the chain.

Each block has its own nonce and hash in a blockchain, but mining a block is not easy, especially on large chains. Creating a change to any block previously in the chain requires re-mining not just the block with the change, but all of the blocks that come after. Because of this, it is extremely difficult to manipulate blockchain technology.

The change is accepted on the network by all of the nodes, and the miner is rewarded financially only when a block is successfully mined.


Decentralization is one of the most important concepts in blockchain technology. The chain is not owned by one computer or organization. But, it is a distributed ledger via the nodes connected to the chain. A node is a kind of electronic device that maintains copies of the blockchain as well as keeps the network functioning.

Each node has its own copy of the blockchain, and the network must algorithmically approve any newly mined block for the chain to be updated, trusted, and verified. As blockchains are transparent, every action in the ledger can be easily checked and viewed. Each participant has a unique alphanumeric identification number that shows their transactions.

Combining public information with a system of checks and balances helps the blockchain maintain its integrity and creates trust among users. Essentially, blockchains can be thought of as the scalability of trust via technology.

What is IAM?

Identity and Access Management (IAM) is an important part of the overall IT security that manages digital identities and user access to systems, resources, and data across the company. IAM is the security management system. Being a security management tool lowers the identity-related access risks within a business.

Nowadays, for both on-premises and cloud implementation, leading IAM solutions are available.

To diminish risks, improve compliance, and improve efficiency across the enterprise, you need to choose the best IAM security partner for your organization. Click here to learn more about what IAM is and how to get started with IAM.

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Benefits of Blockchain Identity Management

Relief from Cumbersome Paper-based Identity Management

The first and foremost important benefit of blockchain for identity management is relief from paper-based identity management. By obtaining duplicate ID proof, Blockchain identity management solutions can help when users lose their original documents. Users who lose or misplace their original ID proof documents can get back their ID proof documents, but they have to go through certain processes with Blockchain Identity Management.

Blockchain identity management helps organizations to ensure that records are permanent and tamper-proof to solve issues. ID proof of individuals can be stored on a blockchain by the government authorities with the assurance of safety and reliability. Apart from this, the security of blockchain guarantees that the ID proof record is permanent.

Easier ID Verification

Due to multiple silos and pre-existing manual processes, identity management solutions could experience the burden of complexity. To resolve this, blockchain technology adds power to identity management solutions to overcome these limitations. The instances of identity management solutions such as Blockpass are the clear, visible benefits of blockchain identity management for identity verification. It features a blockchain-based KYC, or Know Your Customer, portal to serve as an ID verification portal.

Self-Sovereign Identity (SSI)

Over the course of time, the digital world has settled various challenges and opened up many opportunities. But, it also has multiple gloomy corners which come to public light from time to time. The darker side of tech giants is clearly shown in the Facebook/Cambridge Analytics data scandal: how can they control and manage the digital identity of users. These incidents call for further emphasis on understanding the risks of digital identity management.

As we already know, conventional identity management has few complexities and difficulties for users in the management of their own digital identity. The concept of Self Sovereign Identity, or SSI, can serve as a promising answer in this case, with blockchain identity management benefits. With this, users get complete ownership and control over their digital identity.

Improved Safeguards for Critical Infrastructure

The importance of better security in identity management is not limited only to logging into social media accounts. Many critical infrastructures, such as power grids and power plants, are still password protected. Authentication systems powered by blockchain could offer more advantages than just security and personal convenience. Employees of the infrastructure can only access the important control systems, thereby ensuring the limited potential for attacks on critical infrastructure.

Summing Up

On a final note, it is clearly visible that blockchain identity management benefits can completely transform the digital landscape. Blockchain identity management benefits organisations in various ways, like improving security, transparency, and control over data. Improvements to existing identity management systems were unavoidable in the long run.

Looking to opt for Blockchain Identity and Access Management but don’t know where to start? Sennovate is just a phone call away to guide you thoroughly.

Having any doubts or want to have a call with us to know more about IAM solutions for your organization?

Contact us right now by clicking here, Sennovate’s Experts will explain everything on call in detail.

You can also write a mail to us at [email protected] or call us on +1 (925) 918-6618.

About Sennovate

Sennovate delivers custom identity and access management (IAM) and managed security operations center (SOC) solutions to businesses around the world. With global partners and a library of 2000+ integrations, 10M+ identities managed, we implement world-class cybersecurity solutions that save your company time and money. We offer a seamless experience with integration across all cloud applications, and a single price for product, implementation, and support. Have questions? The consultation is always free. Email [email protected] or call us at: +1 (925) 918-6618.