An IBM logo displayed at CES, the world’s largest annual consumer technology trade show, at The Venetian in Las Vegas, in January 2016. (Photo: Ethan Miller/Getty Images).

IBM and the Sovrin Foundation, a private-sector international non-profit organization, have announced IBM as a “founding Steward” of the Sovrin Network that utilizes the power of a “hybrid” distributed ledger – technology sometimes referred to as a Blockchain. It aims to address the current centralized identity system that costs individuals and businesses billions of dollars every year.

The news of IBM – aka ‘Big Blue’ – becoming a “Steward” with the Sovrin Foundation, which is based in Salt Lake City, Utah, comes against a backdrop of banks spending around $1 billion a year on identity management solutions to keep data safe. And, businesses are also spending close to $70 on every password reset. So the initiative should not be taken lightly.

In a digital economy, individuals and businesses clearly need to establish secure, private and trusted transactions. However, the current centralized identity system is described as being flawed.

And, evidencing this, more than 1,300 identity breaches have occurred since 2017 in the U.S., which have caused some 175 million identity records to be compromised according to the 2018 IBM X-Force Threat Index. A recent study conducted by a cybersecurity firm Preempt has also revealed that a whopping 1 in 5 enterprise professionals use passwords weak enough to be hacked easily. Read more from forbes.com…

thumbnail courtesy of forbes.com