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Towards a universal digital identity: a technological and human challenge
The InCyber Forum Canada took place on October 29-30, 2024, in Montreal, opening with a captivating roundtable discussion on digital identity.
This inaugural debate brought together renowned experts, including Shurouq Hijazi, Director at KeyData Associates; Alagan Mahalingam, Founder and CEO of Rootcode; Candice Daisly, Founder and CEO of 3OC Three of Cups; Manuel Badel, CEO of Solidrights and Badel Media; and Claude Perreault, Partner at Levio. The discussion, moderated by Mélanie Benard-Crozat, Editor-in-Chief of S&D Magazine and Impact for the Future, set the tone for two days of intense exchanges on cybersecurity challenges.
Digital identity emerges as a vital and inevitable advancement in technology and the dynamics between individuals and institutions. Some countries, such as Estonia, are significantly ahead in this field. However, ensuring privacy and securing personal data remain top priorities in implementing digital identity systems.
Estonia: A European and global pioneer in digital identity
When exploring the potential of digital identity, Estonia stands as a prime example.
As Alagan Mahalingam noted, “Estonia is a country that has extensively digitized its administration.” The Estonian government has been a trailblazer in this domain, launching a digital identity system (E-ID) in the early 2000s. According to the e-Estonia website, “People use their electronic identity to pay bills, vote online, sign contracts, shop, access healthcare records, and much more.” This digital identity can be accessed through multiple platforms, such as identity cards and smartphone applications. Today, 99% of public administrative services are digital, and 99% of Estonians possess a digital identity card. Even more remarkably, marriages can be officiated online in Estonia. These advancements have significantly simplified administrative procedures, with half of Estonia’s population voting online.
Since 2014, Estonia has also offered a digital residency program (E-Residency), enabling non-citizens—including those outside the European Union—to establish legal and economic ties to Estonia without physical presence. This initiative appeals to global entrepreneurs, supporting Estonia’s economic growth in an era of remote work and digital nomadism.
As Mahalingam pointed out, Estonia’s culture encourages individuals to retain ownership of their data. However, this extensive reliance on digital systems exposes vulnerabilities. Estonia has faced significant cyberattacks on its infrastructure in 2007, 2020, and 2022, underlining the critical need to bolster cybersecurity defenses.
Countries like Canada are also pursuing digital identity initiatives. Shurouq Hijazi highlighted that provinces such as British Columbia and Alberta are leading these efforts, with Quebec aiming to adopt similar systems by 2028.
Meanwhile, the European Union enacted Regulation (EU) 2024/1183 on digital identity, published in the EU Official Journal on April 30, 2024, and effective since May 20, 2024. The regulation requires EU member states to develop at least one mobile application for citizens to store and use identity-related data. Furthermore, the EU aims to facilitate seamless cross-border access across the region. Inspired by Estonia’s system, the EU envisions digital identity as a tool for streamlining administrative processes.
Blockchain: A tool to build and secure digital identity
Candice Daisly emphasized the role of blockchain technology in supporting digital identity. Blockchain, a decentralized data-validation system, ensures the security and authenticity of information.
According to IBM, blockchain technology offers three key advantages for digital identity: speed, security, and flexibility. It fosters trust, limits fraud, and reduces identity theft risks. These features are particularly valuable given that digital identity systems aim to simplify procedures, accelerate service delivery, and combat fraud.
Moreover, blockchain reduces errors common in offline processes. For instance, stealing physical documents (e.g., passports) becomes significantly harder when dealing with blockchain-secured digital credentials.
Expanding usage in the business world
Manuel Badel stressed the potential of digital identity in managing intellectual property, particularly in the media and arts sectors, where it remains underutilized. In collaborative industries, identifying stakeholders is critical. Associating digital content with its creator’s digital identity can ensure proper attribution during online distribution, reducing plagiarism and theft risks.
For broader adoption in the business sector, building trust in these systems is essential. Claude Perreault highlighted that users are often concerned about data privacy. To drive widespread adoption, it is crucial to adopt an user-centric approach rather than focusing solely on the technology.
Digital identity represents a transformative technological development gaining momentum worldwide. While its practical benefits are undeniable, safeguarding privacy and data security is imperative. A successful digital identity system must allow individuals to maintain ownership of their data, fostering trust in the institutions managing this digitization.
In an era marked by declining trust in institutions, reestablishing this confidence is a prerequisite for large-scale digital identity implementation. Additionally, ensuring individuals are trained to use digital tools is critical. Populations less comfortable with technology, such as seniors, risk exclusion in the event of widespread adoption.