Monday, October 20, 2014

Estonia's Identity Experiment


In the United States, verifying your identity can be a hassle.  Every document requires a physical signature and people have to carry multiple ID cards for things like driving, social security, and health insurance.  Some countries, like Estonia, offer a digital alternative.  Every citizen in Estonia has an electronic ID card.  These cards can be used to authenticate any information that citizens need, including birth certificate, health insurance, and other legal documents[1].  They offer two-factor authentication, which means that they can be used as legally binding signatures and face-to-face identification.  The digital identities are secure, too.  The Economist[2] has reported that “no security breaches have been reported,” in the ten years that the system has been active.  Because every resident is given one of these cards when they turn 15, the country has been able to improve their efficiency and significantly decrease their reliance on paper for standard documentation.
                The only thing holding the program back from being and complete success is that international businessmen doing work within Estonia don’t have access to these ID cards, meaning their signatures are still required for legal deals.  However, this is about to change.  Estonia recently announced a new e-residency program in which people who do business in Estonia frequently will be able to purchase one of these cards for use as a legal digital identification card. 
This news is very interesting.  Estonia is the first country to not only launch this broad of a digital identity program, but also to offer it to anyone doing business in the country.   Other governments have tried to implement digital ID cards like this in the past, but public hesitance and a lack of commitment to the costs associated have caused them to scrap their programs. 
                Things may change with the public announcement of this program, however.  With a proven ten year track record, and the ability to support millions of people from other countries, the European Union is pushing a law that will make other countries support other digital IDs.  Similarly, the prevalence of identity theft and the lack of security in a signature may spark a change in how much of the world handles identities. 
                The move to digital is an important one.  Being able to prove identity, sign documents, and confirm insurance information with a single card would simplify almost everything we do on a regular basis.  Not only that, but it would also help to keep sensitive information secure and protected, which is difficult when all of your information is kept on separate cards and documents.

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