Digital Identity: Its Definition and Uses in Business

Digital Identity: Its Definition and Uses in Business

The plan to inaugurate digital identity as a form of official identity is a breath of fresh air for the people of Indonesia. This instrument is expected to be a solution to administrative problems which are often convoluted. Indonesians also have other expectations with the presence of this identity, such as a digital administration system that is simpler, more practical, and can be done flexibly.

Although relatively new in Indonesia, this online identity has actually been implemented by a number of developed countries in the world. They have benefited greatly from the presence of this practical identity.

Actually, what is this identity? Will this technology stay safe from cybercrime? Find out the full explanation in this article.

What is Digital Identity?

Digital Identity, Digital Identity: Its Definition and Uses in Business, Advance Innovations

Digital identity is information about a person’s identity in digital form and can be accessed on any device, be it a smartphone, computer, or tablet. In Indonesia, this identity is now available in the form of a QR code. The information contained in it includes digital identities, ranging from e-mail addresses, social media accounts, and even their activities in cyberspace.

There are two types of information in this identity, namely static identity and dynamic identity. Static identity means any kind of information that will never change. Examples are full name, date of birth, blood type. These three types of identity remain attached to a person throughout his life.

On the other hand, dynamic identity will change according to the situation and conditions experienced. Examples of dynamic identities are occupation, place of residence, or marital status. This type of identity is not absolute and does not necessarily describe a person during his lifetime.

Although different, static and dynamic information complement each other in creating a person’s identity. All of this information is accommodated into one instrument known as a digital identity.

Read also: What is OCR and How Does it Work?

Categories of Information in Digital Identity

Digital identity stores a number of information or a person’s demographic background. All of this information is classified into two categories, namely digital attributes and digital activities.

1. Digital Attributes

This category consists of a number of identifying information that can be accessed online. Digital attributes are very useful for completing administrative processes. Therefore, this type of data can be accessed by governments, institutions, or public and private organizations.

2. Digital Activities

The second category includes some information about the patterns or activities of the population while using the internet. The type of information can be in the form of search history, type of cellphone used, login location, activity on the internet, and so on. The information is synchronized from the device used so that it can enter into a digital identity.

To understand better, see the table of examples of types of digital attribute information and digital activities below.

Digital Attributes Digital Activity
Email address Uploads with likes and comments
Full name Online reviews
KTP Number or Other Identity Supported online petitions
Place and date of birth Geotagging
Medical history Search history
Biometrics Downloaded apps
Bank account number Payment transaction
Log-in credentials, such as username Purchase

Benefits of Digital Identity

Some people still doubt the presence of digital identity because it does not bring significant benefits for them. For them, a digital identity will be the same as an ordinary identity card. In fact, there are many advantages of this instrument for your life.

1. Ease of Access to Various Services

Some services or facilities do require identity verification in order to be accessed. Digital identity makes it easy for residents so that they can take advantage of various services or facilities provided by the state or private sector. The digital form will speed up the service process provided to the community.

Read also: What is Digital Technology and Its Benefits in the Business World?

2. Decrease of Social Inequality

Digital identity is predicted to reduce social inequality even though it cannot completely disappear. Every community has the right to have access to services and facilities regardless of social status or amount of wealth. This condition is easier to fulfill with the presence of digital identity.

3. The Chance to Enjoy Financial Services

Before digital technology became easily accessible, not everyone had a bank account to store money. In addition to the remote location of the bank, the difficulty of the registration process and bank administration is also the reason behind the difficulty. Now, this problem can be solved easily thanks to digital identity. Thanks to this identity, almost all Indonesians can use digital banking services and enjoy the benefits.

Read also: Definition of Authentication, how it Works and Its Importance for Your Life

How Can We Protect Our Digital Identities?

Digital Identity, Digital Identity: Its Definition and Uses in Business, Advance Innovations

Digital identity is sophisticated, but you should not be careless with the risk of cybercrime that is always lurking. That’s why it’s important to protect your digital identity to keep it safe from hackers. There are three tips that can be done, such as:

1. Avoid Suspicious E-mails

Never receive an email that looks suspicious as it is a phishing tool. Avoid clicking on the link contained in the e-mail, because there could be malware that spreads and damages the computer in the suspicious link.

2. Use Password Combinations

Passwords and Personal Identification Numbers (PIN) should be made in complex combinations. Make sure your password has a combination of uppercase and lowercase letters, numbers, and symbols. Never give your username and password to anyone.

3. Always Monitor Your Account’s Security

There are many ways that can be done to increase the security of digital identity. You can use a computer network that is more secure and free from virus attacks. Also find out important information and tips related to increasing the security of your account.

Examples of the Best Digital Identity Applications

Are you ready to welcome the extensive presence of digital identity in this country? Start by using the reliable digital signature application, which is AdIns Digital Signature. Feel the ease of signing a contract or cooperation agreement with a client remotely with just this application. The approval and dealing process for cooperation is also faster and more accurate. Contact AdIns team immediately to try the demo version of this application!

Author :

Ad Ins

Published date :

04 March 2023