With the increasing reliance on technology and the proliferation of cyberattacks, corporate security has become a major concern for organizations worldwide. Traditional multifactor authentication (MFA) has been the go-to solution for improving security, but it has its limitations. Decentralized identity (DID) is an emerging technology that promises to improve security in a more efficient and cost-effective way than traditional MFA. This eliminates the need for centralized authorities to manage and verify user identities, reducing the risk of data breaches caused by compromised credentials or centralized points of failure. DID uses cryptographic techniques, such as digital signatures and zero-knowledge proofs, to ensure that user identities are secure. These techniques are well-established and have been used in other secure systems, such as online banking and digital currencies. Decentralized identities have been successfully implemented in several real-world applications, such as healthcare, finance, and supply chain management. These implementations have demonstrated the security and effectiveness of the technology in practical use cases.
In this blog post, we will discuss the top 5 breaches in corporate security that DID could have prevented while being cheaper and easier to implement than traditional MFA.
Marriott International
In 2018, Marriott International suffered a massive data breach that compromised the personal information of approximately 500 million customers. The breach was caused by a cyberattack that had been ongoing since 2014. One of the main reasons why the attack was successful was that the hackers were able to gain access to Marriott’s network by using compromised credentials. Traditional MFA could have prevented this breach, but it is often expensive and difficult to implement.
DID, on the other hand, provides a more cost-effective and easier-to-implement solution. DID allows users to authenticate themselves without having to rely on a centralized authority. Instead, users can create their own digital identity that is stored on a decentralized ledger, such as a blockchain. This makes it much harder for hackers to gain access to a user’s credentials, as they would need to compromise the entire decentralized network.
Equifax
In 2017, Equifax suffered a data breach that exposed the personal information of approximately 147 million people. The breach was caused by a vulnerability in the company’s web application framework, which allowed hackers to gain access to sensitive data. Traditional MFA could have prevented this breach, but it is often difficult to implement on web applications.
DID, on the other hand, can be easily integrated into web applications. DID provides a more secure way of authenticating users, as it eliminates the need for usernames and passwords. Instead, users can authenticate themselves using a decentralized digital identity that is stored on a public or private blockchain. This makes it much harder for hackers to gain access to a user’s sensitive data.
https://www.ftc.gov/enforcement/refunds/equifax-data-breach-settlement
Target
In 2013, Target suffered a data breach that exposed the personal information of approximately 110 million customers. The breach was caused by a cyberattack that exploited a vulnerability in the company’s payment system. Traditional MFA could have prevented this breach, but it is often difficult to implement on payment systems.
DID provides a more secure and cost-effective solution for authenticating users on payment systems. DID allows users to authenticate themselves without having to rely on a centralized authority. This makes it much harder for hackers to gain access to a user’s payment information.
https://redriver.com/security/target-data-breach
Yahoo
In 2013 and 2014, Yahoo suffered two data breaches that exposed the personal information of approximately 3 billion users. The breaches were caused by a cyberattack that exploited vulnerabilities in the company’s security systems. Traditional MFA could have prevented these breaches, but it is often difficult to implement on legacy systems.
DID provides a more cost-effective and easier-to-implement solution for securing legacy systems. DID allows users to authenticate themselves using a decentralized digital identity which makes it much harder for hackers to gain access to a user’s credentials, even if the legacy system has vulnerabilities.
https://www.nytimes.com/2017/10/03/technology/yahoo-hack-3-billion-users.html
Capital One
In 2019, Capital One suffered a data breach that exposed the personal information of approximately 100 million customers. The breach was caused by a cyberattack that exploited a vulnerability in the company’s cloud infrastructure. Traditional MFA could have prevented this breach, but it is often difficult to implement on cloud systems.
DID provides a more secure and efficient solution for authenticating users on cloud systems as well.
Now you can see, with some real-world breaches, how decentralized identity (DID) could improve corporate security better than traditional multifactor authentication (MFA). DID eliminates the need for centralized authorities and allows users to create their own digital identities that are stored on a decentralized ledger, such as a public or private blockchain. This makes it much harder for hackers to gain access to a user’s credentials, even if there are vulnerabilities in the security systems. As the threat of cyberattacks continues to increase, it is essential for organizations to adopt new and innovative solutions, such as DID, to improve their security posture.