Passwords are the keys to our digital identity but having identical passwords - unlike signatures in the real world - can have various repercussions. This calls for a securer and easier method of authentication and technologists now favour the idea that blockchain could be a legit solution to the issue.
Public-key cryptography uses 2 encryption keys - 1 public and 1 private - and while public keys are stored on the decentralised network, private keys are protected under systems like wallets. These public keys which authenticate transactions at user end can be stored in their smartphones and used as an alternative to passwords.
Blockchain can help tech (and importantly, fintech) companies eliminate the compulsion of keeping a centralised database of information, believes Drummond Reed, Chief Trust Officer at blockchain startup Evernym.
But despite the advantage, blockchain is still alien to many people. In order to woo non-techies, blockchain companies must create a compelling user experience to have them "abandon their familiar usernames and passwords", says Meltem Demirors, head of development at blockchain investment firm Digital Currency Group.