Digital identity based on NFT – an online portal from the IT Department

In the real world, you can identify yourself with your ID card. In the online world, on the other hand, there is the digital identity. But this does not mean a digital ID.

A person’s digital identity contains data necessary to uniquely identify them. As digitization progresses, this technology is also advancing. A new type of digital identity is based on blockchain and NFTs. But what innovations and advantages can a new digital identity bring? What exactly is a digital identity anyway? And why do you need them?

for digital identity

In order to be able to identify yourself in the online world, you need a digital identity. This does not only include personal data such as address, phone number or place of birth. This also includes data such as passwords, usernames or email addresses. It serves the purpose of confirming his identity online. Through online banking or on social media platforms, for example, the same person can be authenticated – often several factors such as SMS or TAN generators are involved. This way, companies can be sure that it’s the exact person.

Digital identity based on NFT

When registering, you go through the same process every time: you are asked for your email address, then you receive a confirmation link and after that you have to type in all your details. With a digital identity based on NFT, all these steps are no longer necessary. All information can be transferred very quickly with just one click. You do not have to enter your email address and passwords again. You also get the opportunity to create a bank account with a single click. The technology is based on the fact that your data has already been verified by a trustworthy verification provider and that successful verification is stored on the blockchain like a fingerprint. Subsequent service providers can therefore rely on this verification. The new generation of the Internet, Web3.0, has the advantage of being able to connect your wallet to different websites. Usually you have to show your ID to create an account, but online it is enough to link to the wallet on which the digital ID is stored in the form of NFT. Since this non-fungible token cannot be transferred, neither can the identity.

Benefits of the blockchain

NFTs are based on blockchain technology. It provides a decentralized platform for trading, transactions and more. Due to the decentralization of the blockchain, no platform is required. It is available to everyone for free. In addition, blockchain technology brings security. By connecting data sets, any actions on the blockchain are more secure and transparent than on centralized platforms. If you design a digital identity based on the NFT – and therefore also on the basis of the blockchain – the data can be stored and transmitted securely. As a result, providers can be trusted and not have to subject data to verification.

Who has access?

With a blockchain-based digital identity, you can decide who to entrust your data to. As long as you don’t release it to a specific person and actively decrypt it using their private wallet, no one will be able to access personal data like address or phone number. You can also specify which data is disclosed to whom. When registering or creating a bank account, the provider only decrypts the data it needs for this. However, once the data is shared, it cannot be undone so quickly. So you should think carefully beforehand who you’re sending your data to. Each provider has the option to verify this data


Digital identity really makes life a lot easier. But storing it on a non-fungible token could mean more benefits. The NFT-based digital identity not only guarantees high security, but can also score points using a fast verification method. In addition, it works with data protection and anonymity. The new type of digital identity brings many advantages and will make traditional methods such as KYC (Know Your Customer) more user-friendly and faster. It’s one of the many steps that make life in Web3.0 easier. An NFT-based digital identity is just a small indication of what could come in terms of digitalization and technology in the future.

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