Digital Identity: Why Is It Necessary? The world is digitalizing at an ever-increasing pace. Our daily lives are deeply connected online, with banking, shopping, public services, and more being conducted through digital spaces. Consequently, the importance of digital identity is growing daily, but existing identity verification systems have failed to adapt to these changes. Current methods, primarily relying on centralized systems, have led to vast amounts of personal information being exposed to risk. While companies and government agencies store and manage user identity information in extensive databases, this often results in large-scale hacking incidents and data breaches. In such a situation, there is an urgent need for a new alternative to manage digital identities safely and efficiently. The necessity of digital identity is clearly demonstrated by cases of personal information leaks. In recent years, large-scale data breaches have occurred frequently worldwide, creating an environment where every individual using the internet can be a potential victim. Moreover, users experience the inconvenience of having to set different login information for each service, which sometimes leads to security vulnerabilities such as choosing easily memorable passwords or using the same password across multiple services. Centralized databases have a structural vulnerability where a single breach can expose millions of individuals' personal information simultaneously. However, the problem is not merely one of convenience. Online identity theft cases related to digital crime are continuously increasing, and there is a growing consensus across the industry that centralized systems alone can no longer solve these issues. Meanwhile, new identity verification methods utilizing blockchain technology are gaining attention as an alternative that can reduce the risk of data breaches and return control of personal information to users. Based on Distributed Ledger Technology (DLT), blockchain stores data across multiple nodes instead of a single centralized repository, significantly increasing the difficulty of hacking and making data tampering virtually impossible. VeriFy's Innovation and Investment Attraction VeriFy, a blockchain identity verification startup headquartered in London, UK, is a prime example demonstrating the potential to innovatively solve these problems. VeriFy has implemented the concept of 'Self-Sovereign Identity (SSI),' enabling users to directly control their identity information. SSI is an identity management method where individuals manage their identity information without relying on a central authority and can selectively disclose it only when necessary. VeriFy's platform stores identity information in an encrypted state on the blockchain, providing a secure environment where users can control it. VeriFy recently attracted attention by securing £10 million (approximately 17 billion KRW) in Series A funding. This funding round saw participation from leading FinTech investors in Europe and global security companies. VeriFy is developing solutions that leverage Distributed Ledger Technology (DLT) to securely manage individuals' digital identities and help businesses verify user identities quickly and efficiently. Existing centralized identity verification systems carried a high risk of data breaches and the inconvenience of users having to manage multiple accounts. VeriFy's solution addresses these issues by storing encrypted personal information on the blockchain, allowing users to directly control their identity information and provide only the minimum necessary information to third parties when required. This approach focuses on enhancing personal data protection and security, giving users complete sovereignty over their data. For example, when accessing a service that requires age verification, instead of providing a full date of birth, one can simply prove that they are 'over 19 years old,' minimizing unnecessary exposure of personal information. Emily Clark, CEO of VeriFy, stated, "This investment demonstrates the importance of reliable identity verification in the digital age," adding, "Through blockchain technology, we will return control over identity information to individuals and provide businesses with secure and efficient authentication methods." VeriFy's Innovation and Global Trends The secured funds will be used to accelerate product development, recruit talent, and expand beyond the UK into the European market. Based on this investment, VeriFy plans to expand its business from the UK across Europe. Especially in the European market, where strong data protection regulations such as the EU's General Data Protection Regulation (GDPR) are in effect, blockchain-based identity verification solutions are considered an ideal solution that can simultaneously satisfy regulatory compliance and user convenience. Trends in the Global Identity Verification Market In the global identity verification marke
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