Blockchain Technology Network considers distributed identity management

Published 2017-12-15 at 12:43

At the start of November, the Blockchain Technology Network gathered in Helsinki to study blockchain-powered distributed identity management solutions.

To start off the meeting, members of the blockchain technology network listened to a presentation on the principles, core concepts and technical solutions of the open identity network Sovrin, presented by Harri Honko, a Project Manager at Tampere University of Technology. Sovrin Identity Network (SIDN) as an open identity network which is implemented as a distributed, public and bounded transaction register. 

Cash replaced by blockchain

Jouko Salonen from the Finnish Immigration Service presented on work carried out using the Inland Studio experimental platform, which harnesses blockchain-based solutions.

Salonen explained how the Finnish Immigration Service uses Prepaid cards and Mobile First accounting services for dealing with money and payment transactions. This solution, which uses the Ethereum blockchain for its privacy-protecting blocking and sanction list functions, replaced the Ministry’s cash-based reception centre money procedures.

The goal of the immigration service is to publish an experimental claim-based ID solution which utilises the Ethereum-based uPort system.

As for longer term development work, a solution based on multi-party dialogue has been considered. In this solution, identity owners, identity issuers and those relying on the identities’ authenticity could all check and confirm identities digitally and automatically.

News from the Financial Supervisory Authority

The update given by the Financial Supervisory Authority at the Blockchain Technology Network meeting related to the European Commission’s Fifth Anti-Money Laundering Directive (AML 5) and to the Financial Technology Action Plan. The European Securities and Markets Authority (ESMA) published its own position on the use of blockchain already at the start of the year.

In addition, the Finnish Parliament’s Legal Affairs Committee has considered the reforms to the directive on means-of-payment offences, which would include broadening the definition of means-of-payment offence to also include virtual currencies.

To round off the meeting, the Ministry of Finance presented on reforms to personal identity numbers, the current state of the investigation into the management of state-guaranteed identities, and possible connections with the work of the Blockchain Technology Network.

Network brings experts together

The goal of the network is to develop the public administration's knowledge of blockchain technologies, help understand the possibilities offered by blockchain technologies and to bring together the experts who work in the field.

Blockchain is a technology which makes possible the world’s first distributed and transparent database. This database can be securely maintained and updated by anyone at all and by parties which are completely unknown to each other. The most well-known application which uses blockchain technology is the virtual currency Bitcoin.

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Further information:

Chief Enterprise Architect Janne Pulkkinen, janne.pulkkinen (at) valtiokonttori.fi
Development Manager Kimmo Makinen, kimmo.makinen (at) vm.fi