The role and possibilities of using blockchain technologies in the sphere of digital identification in Ukrainian banks

Abstract

The purpose of the paper is to study the role and possibility of using blockchain technology in the field of digital identification in Ukrainian banks. To achieve the goal, the following tasks were performed in the research process: concepts, advantages and disadvantages of blockchain technology were considered; the possibilities of its use in the field of digital identification in Ukrainian banks were investigated. It is noted that information technologies have dramatically affected various spheres of social life in recent decades. Ukrainian banks are also, step by step, revealing the enormous potential and advantages of the latest technologies, which already today enable them to improve the efficiency of financial operations, ensure security and reduce customer service costs. It was also noted that blockchain in banking has a huge potential to improve efficiency, security, autonomy and control, but at the same time needs to overcome numerous technical and organizational challenges. It is noted that digital identification is a relatively new direction that has great potential in the modern world of digital technologies. It enables individuals and legal entities to verify and confirm their identity or status online without the need for physical presence or presentation of paper documents. However, the issue of privacy, security and standardization is acute here. The implementation of blockchain technology can be one way to solve some of these issues, providing a reliable and secure digital identity system that will allow users to control their data and provide a high level of protection against cybercriminals. The conclusion noted that the use of blockchain technologies in the field of digital identification has the potential to improve the quality of service and ensure a high level of protection of personal data of Ukrainian banks and their customers.