Distinguished code for the next market if fixing one problem: CEO of Blackrock

If the vision of Larry Fink – CEO of the company BlackrockThe largest money manager in the world – become a reality, all assets from stocks to bonds to real estate and more will be online online, on Blockchain.

Fink wrote in his speech, “Every origin – it can be symbolic.” Annual message For investors.

Unlike traditional paper certificates that refer to financial property, the distinctive symbols live in Blockchain, allowing immediate purchase, sale, transfers without papers or waiting – “very similar to the digital act.”

Fink says it will not be less than a “revolution” for investment. Think about 24 hours a day and a trading settlement process that can be pressed in seconds from a process that can still take days, while immediately investing billions of dollars to the economy.

But there is one big problem, one technical challenge stands on the way: the lack of a coordinated digital identity system.

While technology experts say the idea of ​​Fink is unlikely, they agree that there are challenges to cybersecurity in the future in making it work.

Check the owners of assets in the world of deep intelligence

Today, it is not easy to check that the person with whom you interact is the person because of the spread of Ai Deepfakes and advanced electronic confessions, according to Cristina Holka, Executive Director of the Safe Technology Alliance, focuses an organization on identity, access and payments. As a result, the presence of a unified verification system will be useful because there will be the verification of the authenticity of the encryption that people are the ones who say they are.

“The (financial services) industry focuses on how to build a zero framework to determine identity. You do not trust anything until it is verified,” said Holka. “The challenge is to make everyone together about the technology that must be used, which makes it simple and smooth for the consumer as possible,” she added.

It is difficult to say specifically how the digital verification system will work widely, but to support a fully symbolic financial structure, the system will need, at least, to meet the strict security requirements, especially those related to financial regulations such as knowing your customer’s base and money laundering rules, according to Zolvicar Ramzan, chief technology official in Point Wilde, which is Abraray.

At the same time, the system should be low and fast. Ramzan said that there is no shortage of technical tools today, especially from the field of encryption, which can effectively link the digital identity to the treatment. “Fifteen to 20 years ago, this conversation was independent,” he added.

There were some successes with programs like this all over the world, according to Ramzan. The Adhaar system in India is an example of a digital identity frame at the national level. It enables most of the population to authenticate transactions via mobile devices, and are combined through both public and private services. Estonia has an ED E-ID system that allows citizens to do everything from banking services to voting online. Singapore and the United Arab Emirates have also implemented strong national identity programs related to the infrastructure of mobile phones and digital services. Ramzan said: “While these systems differ in how to deal with issues such as privacy, they all participate in a major feature: the central government leadership that prompted measurement and adoption,” Ramzan said.

Central personal data is a great goal for electronic criminals

David Matti, a strategic advisor in fraud and AML in Datos Insights, who works with financial services, insurance and retail trade companies, a strategic advisor in fraud and AML in Datos Insights, who works with insurance and retail companies, strategic advisor in the field of fraud and AML in Datos Insights, which works with companies Financial services, insurance and retail technology, a strategic advisor in fraud and AML in Datos Insights, while the central system solves one of the challenges, storing personal identification data and biological measurements data represents security risks.

It is worth noting that there are reports on the data stolen from the Adhaar system in India. Last year, the El Salvador government had personal data of 80 % of its stolen citizens from the identity of a central citizen by the government. Matti said: “Many security experts do not defend the existence of a central security system because it is somewhat similar to the end of the rainbow that every fraud tries to try to.”

In the United States, there is a long -term preference for decentralized identity systems. On mobile devices, the face and fingerprint definition are not defined by the centrality of all these data in one spot in Apple or Google, but by storing data in a safe unit on each mobile device. Matti said: “This makes it more difficult, if not impossible, for fraudsters to steal these data collectively,” Matte said.

Digital driver licenses offer a warning story

It will take a great coordinated effort to reach a national identity system used to verify identity.

Ramadan said that the identity systems in the United States are fragmented, while giving an example of car departments in cars. “To move forward, we will either need either a coherent national strategy or a way to better coordinate identity throughout the state and the federal level,” he said.

This is not an easy task. Take, for example, the efforts made by many countries to adopt digital driver’s licenses. About a quarter of the states today, including Utah, Maryland, Virginia and New York, emit a mobile driver’s licenses, according to Mdlconnection, Online supplier From the Safe Technology Alliance. Other countries have valid experimental programs, enactment or studying the issue. But this pledge is very ambitious and has been ongoing for several years.

Matte said: To implement the national identity verification system, it will be “a huge pledge and every company operating on the Internet will require a government standard to verify identity and ratification.”

Competitive forces are another issue that deals with them. “There is an ecosystem for sellers who provide identity verification solutions and authentication that does not want a central system for fear of getting out of work,” Matte said.

There are also significant special obstacles to data to overcome them. The states and the federal government will need to coordinate to resolve governance issues, and this may cause “the older brother” concerns about the extent to which the federal government is able to monitor the activities of its citizens.

Ramzan said that many people “have a little allergic reaction” when anything looks like a national identity.

I pushed Find to SEC to consider the case

The idea is not a new one for Findk. In Davos earlier this year, Tell CNBC that he wants SEC “To expand the scope of the stock and bonds quickly.”

There is a Blackrock self -interest at work, potential costs for the company and many others, which FINK talked about. In recent years, Blackrock has been dragged into political battles and lawsuits, due to their voting with a huge amount of shares held in her money on ESG issues. “We no longer vote on an agent anymore,” Fink told CNBC in Davos, referring to the “Blackrock tax”.

“Every owner will be notified of the vote,” he said, adding that he will reduce the cost of ownership of stocks and bonds.

It is clear from the Fink’s decision to give this issue a prominent situation in his annual message – even if it comes in third place by arranging the issues that he covered behind both. Protectionism and The increasing role of private markets – He does not give up. It is claimed that what is required to make this reality is the new digital identity verification system. The message is short on the details, and Blackrock rejects clarification, but, at least on the surface, the Find Fink is clear. “If we are serious about building an effective and accessible financial system, the defense of the distinctive symbol will not be sufficient. We must also solve digital verification,” he wrote.

Blockchain continues to develop and people learn to understand it better. Accordingly, there are ongoing initiatives to think about how the United States achieves a wide range of identity verification. There are technical ways to do this, but finding the correct way to work for the country is a more challenge because it must be turned on. “The goal is to reach a point where there is one way to verify identity through multiple services,” she said.

In the end, there will be a turning point for the financial services industry as it becomes a need to work. “The question is when, of course.”