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Indonesia Harnessing Blockchain to Decentralise Data

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Karina Mayasita Handoyo, a researcher at the National Research and Innovation Agency (BRIN), believes that many people in Indonesia are still sceptical about using Blockchain technology because it is often associated with Bitcoin. Through the Ministry of Communication and Informatics, the Indonesian government acknowledged its support for implementing Blockchain technology, especially for enhancing a digital identity.

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Digital identity is a crucial aspect of data as it plays a significant role in securing information and managing access to various online services. Digital identity is the electronic representation of an individual’s physical identity in the digital world.

BRIN is researching blockchain technology’s potential to secure digital identities. This research aims to protect digital data in the systems utilised every day from theft and leaks.

Karina explained that traditional digital identity systems are usually controlled by central authorities or organisations that store and manage individual identity data. This poses several risks, including data leaks and privacy violations. Dependence on a single authority, inflexibility, and the potential for a single point of failure are also significant concerns.

Blockchain emerges as a solution to simplify and streamline these challenges. Blockchain is a technology used to store and transfer data decentralised. Blockchain technology enables data storage in cryptographically linked blocks, authorised through consensus mechanisms, ensuring the validity of each transaction. Blockchain also allows for secure, transparent, and efficient data transfer through immutability, transparency, decentralisation, and automation via smart contracts.

Karina outlined that blockchain technology offers concepts like Decentralised Identity and Self-Sovereign Identity, providing individuals greater control over their identity data. Additionally, blockchain technology can create Verifiable Credentials, digital credentials equipped with digital signatures and secured through cryptography.

In various industries, such as supply chain management or clinical research, Blockchain provides a shared and immutable platform for data transfer. Organisations can securely share data, track changes, and maintain consistent transaction records, leading to better coordination, reduced disputes, and increased efficiency.

In the business world, Blockchain is also utilised for transferring documents, whether in digital files or digital data records. Blockchain technology can meet the requirements of document transfer, such as content authenticity and ownership while ensuring document and data transparency and confidentiality.

“Blockchain technology can create a more secure and reliable digital identity system,” addressed Karina.

Steve Suhadi, Co-Founder of a Blockchain company, further explained that blockchain technology provides a unique and practical approach when combating hoaxes. He says news can be identified as true or false by computer data consensus. Involving many computers distributed across the network, Blockchain creates a scenario where information must obtain approval from most computer nodes before being deemed valid. This creates a robust authentication mechanism, ensuring that information conveyed via Blockchain has undergone a stringent verification process.

The importance of data consensus in blockchain technology indicates that only some entities can manipulate or disseminate false information by obtaining majority approval. Thus, Blockchain is about decentralised data storage and building a foundation of trust through robust consensus methods.

Furthermore, Steve highlighted that in the startup world, Blockchain can serve as a strategic tool to help companies enter international markets. With its ability to provide transparency, security, and efficiency, Blockchain can address several challenges faced by companies looking to expand their footprint in the global market. Securely recorded data on the Blockchain can instil confidence in stakeholders, including consumers and business partners, strengthening the position of startup companies in the face of global market uncertainties and complexities.

Given these aspects, Blockchain technology can be further developed as a revolutionary and secure data integration platform. The fundamental concept of Blockchain, decentralised and transparent data storage, can potentially address significant challenges in traditional digital identity management.

In data integration, Blockchain can function as a distributed ledger that securely records transactions and data changes. Every piece of information added to the Blockchain requires consensus approval from most nodes in the network, creating a tamper-proof digital trail.


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