The greatest obstacle for migrating many services online is the ability to secure the data and verify the identity of the users of that service. Currently, online authentication relies on a password or on rare occasions the use of dual-factor authentication.
The problem with these methods are that passwords are notoriously insecure and dual-factor authentication generally relies on sending a code over SMS or a third party service. The solution to this problem lies inside the blockchain.
Currently, the blockchain is used to handle the ledger for a $10 billion dollar currency. However, the same cryptographic principles could be applied to authentication.
By distributing a ledger among all members of the network, blockchain authentication eliminates someone from maliciously altering the ledger. Every time a ‘transaction’ or block of data is added to the chain a majority of the network must verify its validity. This guarantees the integrity of the ledger. Public key encryption is then used, such as the extremely secure RSA encryption, to securely send their credentials. The recipient verifies this against an entry in the immutable blockchain resulting in an incredibly secure and reliable way to handle verification of identity.