The benefits of blockchain technology are out of this world to the extent that a lot of sectors are seeing the importance of adopting it. It is a disruptive technology that has merely been scratched on the surface, and it can revolutionize business processes.
The only way that blockchain technology can face wide adoption is if there are innovative blockchain-based products churned out regularly. This is something that Algorand has been doing. It has been at the forefront of creating more use cases with the aim of improving blockchain adoption.
The basic truth is that the users of a technologic innovation are usually not interested in what goes on in the background. They are only interested in the benefits that the technology offers them. Algorand understands this, and that’s why the platform keeps creating new blockchain based products like FlexFinTx.
Algorand Foundation designed its blockchain network in such a way that it is open for developers to create innovative decentralized applications on the blockchain. Now that we are done analyzing what Algorand stands for, let’s look at FlexFinTx
FlexFinTx : What Is It?
There’s an issue that most people in underdeveloped countries face, and that’s the issue of citizenship identification. It’s not news that digital identification systems are little or nonexistent in many underdeveloped countries. A case study includes countries in Africa. This is why the FlexFinTx dapp was created.
It’s common to see citizens of these countries moving around with heterogenous identification forms, and many of these may not be accepted by organizations both within the country and outside the country. This can be appalling, especially when the citizens have to apply for something that a global organization is offering, and there’s no form of digitalized identification system that they can be used in proving to the international organization that they are who they say they are.
There’s another issue that plagues underdeveloped countries and that’s the issue of verifying the identity of people across the border. A serious limitation exists when the identity of a person in an underdeveloped country has to be verified by someone else in another country. The lack of trust could hinder it, as there’s no global or trustworthy format of doing this in most developing countries.
With the prevalence of fraud, many international bodies do not believe the sources of the information in these developing countries. This is why FlexFinTx was created.
FlexFinTx intends to tackle this issue by giving users a trustworthy form of identification, which is the FlexID. They can be used anywhere in the world.
The ID is designed with global standards created for Decentralized Identities in mind.
The creation of the FlexIDs makes it easy for people to easily be identified wherever they go, and it is a unique form of digital identification. To prevent fraud and ensure that the information is not changed by anyone, the identities are stored on the Algorand blockchain. This will go a long way to reduce the case of identity theft, as information regarding a person with the FlexID can’t be changed on the blockchain. FlexID boast of resilience and state of the art cryptographic security.
The information on users can be accessed publicly, making it easy for users’ identities to be verified. Users can use their FlexIDs to show international organizations who they really are. The information can’t be corrupted by anyone. This improves the trust of organizations and individuals on the accuracy of the information stored on the blockchain.
FlexFinTx’s On-Chain Layer
Developers create the on-chain layer on Algorand blockchain itself. Developers can use Algorand transactions to input text, as long as they use the noteField parameter. To ensure that the network is not faced with spamming issues, the transactions related to FlexFinTx transactions will form into batches. These batches are then placed as one transaction on the blockchain.
The FlexFinTx on-chain architecture acts as the building blocks for its decentralized identity platform. Once the identity of a user has been verified, he or she is given a public key. The key is then kept and controlled by the Algorand network. What this means is that the personal information of users is not stored, but only the public keys that are stored.
FlexFinTx Layer-2 Architecture
This decentralized application, FlexFinTx, possesses an extra layer, the layer-2 system. It is that aspect that ensures that ensures the creation and verification processes of the digital ID are done.
This second layer was created with the SideTree Protocol, as it is perfect for creating scalable dApps designed for solving digital identification issues. It works on any blockchain, making it perfect for the Algorand blockchain.
Utilizing the SideTree protocol has made it easy for FlexFinTx to create and verify digital IDs that follow the international guidelines stringently, while being hosted on the Algorand blockchain. The identity of users will easily be verified by a trusted issuing authority. To prevent it from being corrupted, it uses cryptographic security.
From what is on ground, it seems like FlexFinTx wants to partner more with government organizations NGO, FinOrgs and the likes. This is a smarter way of getting the general public, especially those in the remote areas to have access to FlexIDs.
The aim of FlexID is to be used by those in even the most remote parts of the world, and what better way can that be achieved than by using organizations that have contact with those in the grassroots.