Blockchain-powered global identity could transform finance, travel and digital access

The study proposes a Universal Digital Identity, or UDI, system based on a simple principle: a person should be verified once in their lifetime, with the resulting identity recognised instantly anywhere in the world. This requires a secure, immutable identity record anchored in a decentralised architecture rather than a national database.

New research states that legacy identity systems that include national ID cards, passports and even modern digital identity programs are fundamentally limited in a world where economic activity, mobility, health services, financial systems and online platforms all require fast, universal and secure verification. Without structural reform, the report warns, identity fragmentation will continue to create financial exclusion, regulatory bottlenecks and systemic security risks.

The study, titled Towards a Universal Digital Identity: A Blockchain-Based Framework for Borderless Verification and published in Frontiers in Blockchain, outlines a full blueprint for replacing fragmented identity systems with a universal, one-time biometric identity that is recognised worldwide. The author, Glad Akhison, argues that improvements in biometrics, blockchain architecture and decentralised verification standards now make such a universal system technologically feasible in a way that was not possible a decade ago.

Digital identity systems struggle as globalisation outpaces national verification models

Digital identity is now a permanent requirement of modern life, yet the systems that support it remain siloed, paper-based in large parts of the world and dependent on institutions that cannot easily interoperate. The rise of cross-border employment, digital banking, remittance platforms, telemedicine, online education and international migration has made identity verification a continuous and global requirement, not an occasional national formality.

Traditional documents such as passports or national ID cards remain vulnerable to fraud, duplication, document forgery and administrative delays. Many countries lack the infrastructure to issue secure identity documents at scale. The study notes that hundreds of millions of people still lack any formal identification at all, blocking access to essential services and creating systemic blind spots for regulators.

Even modern digital identity initiatives face structural limitations. Systems like Aadhaar in India or the European Union’s emerging identity wallet remain tied to national or regional frameworks. They cannot deliver global verification without complex bilateral agreements, shared databases or international treaties that remain years away from materialisation.

The author argues that these limitations have created an urgent need for a universal framework that can function above the level of individual states. The goal is not to replace national IDs but to provide a globally recognised identity backbone for cross-border verification, financial inclusion and digital governance. The paper identifies patterns of globalisation that mirror historical transitions in currency, telecommunications and trade, where localised systems eventually require standardisation to function at global scale.

In this context, a universal digital identity becomes not only a technological possibility but an economic and social necessity.

A universal digital identity built on biometrics, blockchain and selective disclosure

The study proposes a Universal Digital Identity, or UDI, system based on a simple principle: a person should be verified once in their lifetime, with the resulting identity recognised instantly anywhere in the world. This requires a secure, immutable identity record anchored in a decentralised architecture rather than a national database.

The proposed enrolment process takes place at age sixteen, using a combination of high-accuracy biometric markers such as facial vectors, fingerprints, voice samples and a secure selfie reference. These biometric signatures are hashed, encrypted and stored on a permissioned blockchain ledger. The study outlines how a consortium of trusted nodes, governments, regulated institutions and accredited digital identity providers, would maintain the ledger in a decentralised manner.

Once registered, individuals would authenticate themselves globally using either a Universal Digital Identity Number or direct biometric matching. Verification could occur in milliseconds, enabling cross-border services such as opening a bank account, signing a smart contract, passing through an airport checkpoint or accessing digital platforms without relying on physical documents.

The framework integrates multiple privacy safeguards. Instead of exposing raw biometric data, the system uses hashed vectors, selective disclosure protocols, pseudonymous credentials and zero-knowledge proofs. These measures allow individuals to verify eligibility, such as being over eighteen or being the identity owner, without revealing unrelated personal details.

A layered architecture enables interoperability with existing identity standards, including the W3C Decentralized Identifier (DID) model and Verifiable Credentials. The design also supports integration with regional initiatives such as the EU Digital Identity Wallet or Africa’s Smart ID programs. According to the study, such compatibility is essential for real-world adoption, ensuring that the universal system complements rather than displaces existing national and regional frameworks.

The paper argues that a blockchain-based UDI offers several distinctive advantages over current digital identity models: universal cross-border recognition, immutable record-keeping, resistance to tampering, increased transparency, and decentralised trust that does not depend on any single authority or government.

Opportunities and risks: A global identity system could reshape finance, security and human rights

The study outlines a wide range of benefits that could arise from adopting a universal digital identity framework. Financial institutions could conduct instant, reliable onboarding without waiting for document verification or facing inconsistent country-by-country compliance rules. Border authorities could reduce processing times and eliminate identity fraud. Digital platforms could verify users without relying on insecure email or phone-based methods, reducing impersonation and cybercrime.

For the unbanked and undocumented population, a universal identity could eliminate one of the biggest barriers to accessing essential services. Migrants and refugees could retain verified identity even when crossing borders or losing their physical documents. Public health systems could authenticate patients securely without exposing sensitive medical records. International commerce could accelerate as identity-related friction decreases across sectors.

However, the paper dedicates equal attention to potential risks. The author warns that without careful governance, a universal identity system could become a powerful tool for mass surveillance, overreach or political control. Biometrics carry inherent risks of misuse, especially in environments where civil liberties are weak. Digital exclusion remains a threat for communities with limited access to devices, connectivity or digital literacy.

Technical vulnerabilities also pose long-term risks. Blockchain scalability, key management, liveness detection accuracy and susceptibility to deepfakes or spoofing attacks are all areas that require continuous improvement. The study identifies quantum computing as a future threat to today’s cryptographic primitives, advising early work on quantum-resistant algorithms.

Legal and regulatory barriers further complicate global adoption. The study highlights tensions with privacy laws like the GDPR, jurisdictional conflicts and the challenge of assigning liability when identity failures occur in a decentralised system. Governance models would need to balance decentralisation with accountability, ensuring no single actor can manipulate or weaponise identity verification.

Pilot programs, regulatory sandboxes and international coordination will be required to test, refine and secure the system before wide-scale deployment. Ethical frameworks, consent standards, algorithmic fairness and equitable access must form the foundation of any operational rollout, the paper concludes.

Despite these challenges, the author is optimistic that a universal identity framework is likely to emerge as a natural evolution of global digital infrastructure.