How decentralized identity technology can make access to government services more equitable

Governments debate how much they should spend on public services, as witnessed by the recent debt-ceiling standoff, and by the annual budget process that plays out in every city and county. But everyone can probably agree that access to public services should be simple and equitable.

Too often, though, services are difficult to consume. As a result, service delivery can be inequitable, with the individuals and families in greatest need facing the biggest roadblocks.

One of the toughest challenges is managing personal data. Virtually every interaction between residents and agencies—renewing a driver’s license, applying for a building permit, qualifying for financial assistance, paying taxes—requires the submission and validation of personal data. Typically, that data is onerous for residents to gather and time-consuming for agencies to verify.

The solution is digital identity technology known as decentralized identity, sometimes called self-sovereign identity (SSI). With decentralized identity, a resident’s personal data—date of birth, employment history, bank accounts, health records—is validated once, stored in their smartphone’s digital wallet, and verified in a public ledger. There’s no need for every city and county agency to redundantly validate the data for every transaction—and then store and protect the data in perpetuity.

Decentralized identity gives residents control over their personal information. It relieves agencies of the burden of repeatedly collecting and verifying data. Just as important, it improves the equitable delivery of government services.

Easier, safer data management
Here’s how decentralized identity works. Let’s say Sally validates her date of birth, Social Security number and mailing address with the Department of Revenue (DOR). The DOR issues a valid credential for each piece of data.

But the data isn’t stored in the DOR’s database. Instead, each credential is stored in Sally’s secure digital wallet. Each credential is also assigned a decentralized identifier—a string of numbers and letters that verifies the validity of the data in a distributed ledger such as blockchain.

Because the credentials are verified in a distributed ledger, there’s no need for other agencies to re-validate and store the data. If Sally later applies to the state for a driver’s license, to the city for a building permit, and to the county for a library card, the relevant agencies can trust the credentials already issued by the DOR. They only need to gather and validate any additional data specific to that transaction.

As Sally interacts across agencies, the number of validated credentials in her digital wallet grows, and each transaction becomes more efficient. The same is true if she applies for public assistance such as Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), or Women, Infants, and Children (WIC) benefits. In effect, those programs “share” Sally’s data, but without actually storing or exchanging it.

At the same time, Sally retains control over her data. She only needs to provide the credentials required for each transaction. She no longer needs to worry that organizations have access to personal data they don’t require or that they might share data without her knowledge.

Equitable access, equitable services
Decentralized identity can make access to services more equitable, because it makes proving identity and applying for benefits easier. That would be a welcome change for millions of city and county residents who face financial, educational, housing, or other disparities. Decentralized identity is more effective than traditional centralized identity management because it’s:

1. Easier to validate About 29 million adult U.S. citizens (11 percent) lack a valid driver’s license, and 7 million have no current form of government-issued photo ID. For these people, decentralized identity removes a hurdle in proving who they are.
2. Mobile-enabled At least 85 percent of U.S. adults have a smartphone, including 76 percent of residents making less than $30,000 a year. In fact, 27 percent of people with incomes under $30,000 lack broadband at home and access the internet with their smartphone. For these individuals, a mobile-first experience is essential.
3. More accessible For many benefits programs, more residents are eligible than apply. Enabling residents to submit credentials on their smartphone, rather than take time off work and travel to a government office, would expand access. If decentralized identity enabled mobile access for 85 percent of residents, the 15 percent who accessed services in person would receive more focused attention while requiring fewer resources.

Getting started with decentralized identity
Decentralized identity offers many use cases. At the city and county level these include voter registration, property tax, permits, licensing, housing, child care, meal programs, after-school programs and many more.

Decentralized identity isn’t just for proving who someone is. Any credential required for access to a public service—financial, employment, education, certification, health, and other records—can be validated using a decentralized approach.

The more agencies that implement decentralized identity, the greater the gains. For that reason, deployment works best with a top-down model. But it needn’t begin in the governor’s office. Advocacy could start at the top of a city health and human services department, a county criminal justice department, a large school district—any organization with multiple agencies and programs that could multiply use cases.

Decentralized identity delivers advantages to government, enabling agencies to quickly and confidently verify personal information without the need to store, manage, and protect that data. It provides many conveniences to residents, enabling them to more easily access services while maintaining control of their own information. Ultimately, by digitizing and streamlining interactions with residents, decentralized identity improves equitable access to government services.

Piyush Bhatnagar is vice president security products and solutions at GCOM, which delivers outcome-driven technology solutions to state and local government that improve population wellbeing, create safer and more equitable communities, and foster a thriving economy. Bhatnagar is a seasoned technology executive and entrepreneur with extensive experience managing global software teams. He holds multiple patents in the areas of security, authentication and decentralized identity.