National Identification Systems as Enablers of Online Identity

Abstract

This chapter examines the role of national identification systems (NIDS) as enablers of online identity in this digital age. With the rapid growth of digital services and platforms, online identity management has become increasingly crucial. NIDS are among the cornerstones shaping digital identities by providing secure authentication and access to various online services. The chapter explores the evolution of NIDS, their transition from physical to digital formats, and their integration with online identity management. It presents case studies from Estonia, India, Norway, Sweden, and Singapore to demonstrate the diverse approaches and best practices in implementing an effective integration of NIDS with online services. The chapter discusses the challenges of NIDS as enablers of online identity to highlight the areas that require attention and improvement. It also explores the impact of emerging technologies on the future of NIDS, emphasising the importance of continuous research, innovation, and international collaboration. In general, stakeholders can contribute to a more secure, connected, and inclusive digital society by understanding the significance and potential of NIDS in shaping online identities.

1. Introduction

In this digital era, where interactions, communications, and transactions are increasingly online, online identity has become a critical aspect of our daily lives. Online identity encompasses various attributes that define an individual or entity in the digital realm, such as usernames, email addresses, social media profiles, and digital footprints [1, 2, 3]. As digital services proliferate and the world becomes more interconnected, the importance of establishing and managing online identities has grown exponentially for individuals, businesses, and governments alike. Amid this digital transformation, national identification systems (NIDS) have emerged as indispensable enablers of online identity, providing a robust, secure, and verifiable means of linking an individual’s real-world identity to the virtual presence [4, 5]. NIDS are systems established by governments to issue a unique identification number to its citizens and residents. The purpose of NIDS varies from country to country but generally include identity verification, public services access, economic and social planning, election and governance, and immigration control. These systems can also serve as the foundation for online identity management because they offer various benefits that can contribute to the digital transformation of societies.

This chapter aims to explore and analyse the role of NIDS in shaping online identities, offering a comprehensive understanding of their benefits, challenges, and prospects. It presents the definition and purpose of NIDS, their evolution from physical to digital formats, and their integration with online identity management processes, setting the stage for a detailed examination of the interplay between these systems and online identity management. Through case studies of countries that have successfully integrated NIDS with online identity management, the chapter aims to provide valuable insights into best practices and lessons learnt. Furthermore, the chapter seeks to identify the challenges associated with NIDS as enablers of online identity and explores emerging technologies and trends shaping the future of NIDS and online identity. Lastly, the chapter synthesises the key points and findings, emphasising the importance of continued research and innovation in NIDS and online identity management. This chapter offers valuable insights to academics, policymakers, and practitioners involved in developing, implementing, and evaluating digital identification systems and online identity management strategies by comprehensively analysing the interplay between NIDS and online identity management.

The rest of this chapter is structured as follows. Section 2 provides an overview of NIDS, their purpose and evolution, and their integration with online identity management. Section 3 presents case studies of countries that have successfully integrated NIDS with online identity management, offering valuable insights into best practices and lessons learnt. Section 4 identifies the challenges associated with NIDS as enablers of online identity. Section 5 explores emerging technologies and trends shaping the future of NIDS and online identity. Section 6 summarises the key points and findings of the chapter, emphasising the importance of continued research and innovation in the field of NIDS and online identity management.

2. Background

This section presents the definition of NIDS and their purpose. It also discusses the evolution of NIDS, their transition from physical to digital formats, and their integration with online identity management.

2.1 Definition and purpose of NIDS

NIDS refer to systems established by governments to provide reliable and secure means of verifying the identities of their citizens and residents. They are authoritative sources of basic identity information and can also provide credentials that enable citizens and residents alike to authenticate their identities for a wide variety of purposes and sectors [6]. Thus, NIDS are a cornerstone in contemporary societies, underpinning various activities and services.

At their core, NIDS usually issue a unique identifier to each citizen or resident. This unique identifier often forms a national identification card linked with the individual’s data, including their name, birth date, and biometric data, thereby serving as a form of official identification [7]. These identity markers support the individual’s entitlements under the law and are thus an essential part of the citizenry.

Many countries have developed or are exploring NIDS initiatives. The function of NIDS varies across different countries, but common underlying themes manifest in their applications. The foremost of these is the facilitation of identity verification. NIDS offer a uniform and reliable method for confirming an individual’s identity, which proves crucial when citizens need to access various public and private services such as healthcare, education, and financial services [8]. Hence, NIDS can support the efficient administration of these services by ensuring a reliable identity confirmation process.

Moreover, NIDS are indispensable tools for public administration and service delivery [8]. These systems enable governments to target resources and services to the right individuals more accurately and efficiently by streamlining the identification and registration process. This efficient targeting of resources can result in significant savings for governments and more effective service delivery for citizens.

In the context of internal security and law enforcement, NIDS are highly beneficial. They can be used to prevent and combat criminal activities such as identity theft, fraud, and terrorism by providing accurate and current information on citizens and residents [9]. NIDS have also proven invaluable in economic transactions by offering a secure and verifiable method of identification [10], thus enabling individuals to open bank accounts, obtain credit facilities, and conduct other financial transactions domestically and internationally.

NIDS can play a critical role in upholding the integrity of the electoral process [11]. They facilitate efficient voter registration, prevent fraud, and promote transparent and accountable governance. Using NIDS in electoral processes ensures that only eligible voters participate in the democratic process. They can streamline tracing each vote back to a verified identity, reducing the likelihood of electoral fraud. In addition, these systems can serve as the foundation for comprehensive data management and the generation of reliable demographic and socioeconomic statistics [8]. The data collected can enable informed policy-making and resource allocation, creating more effective and targeted policies.

NIDS have a significant role in modern societies by providing a standardised and reliable method for verifying and managing individuals’ identities. They can enhance societies’ efficiency, effectiveness, and transparency by contributing to various aspects of public administration, service delivery, security, governance, and economic activities.

2.2 Evolution of NIDS: from physical to digital

NIDS have undergone a substantial evolution, transitioning from physical identity documents to sophisticated digital identification systems. This metamorphosis has been largely fueled by technological advancements, a growing demand for more secure identification, and the need for seamless access to digital services. The following comprehensive analysis encapsulates the principal phases in the development of NIDS.

Initially, NIDS were rooted in the use of physical identity documents, which typically included paper-based birth certificates, identification cards, and passports. These rudimentary forms of identification contained basic personal information such as the individual’s name, date of birth, and a photograph [12]. These physical documents offered a tangible means of asserting an individual’s identity. However, they were susceptible to forgery, theft, and damage, which posed significant security risks and threatened the overall integrity of these identification systems.

In an attempt to circumvent these vulnerabilities, governments began incorporating biometric data into their NIDS. This integration of unique physical attributes, such as fingerprints, facial recognition, and iris scans, offered an elevated level of security as these biometric features are unique to each individual and are significantly harder to forge or manipulate [13]. Consequently, the use of biometrics has greatly improved the overall integrity and reliability of NIDS.

Parallel to this development, the advent of computer technology paved the way for the creation of centralised databases. These databases allowed for more efficient storage, management, and retrieval of identity information. The ability to process and share data more efficiently has significantly enhanced the role and effectiveness of NIDS in public administration and service delivery [14]. This is because NIDS are able to streamline access to public services and enable efficient delivery of services.

Following the breakthroughs in microprocessor and chip technology, governments embarked on issuing smart cards as national identification documents [15]. These cards were embedded with a microchip that could store and process data, including biometric information. Not only are smart cards more difficult to forge, but they also securely store large amounts of data, hence offering enhanced security and convenience.

Furthermore, the widespread adoption of the internet and digital technology heralded the advent of fully digital identification systems. These systems, which leverage advanced technology such as blockchain, biometrics, and mobile devices, facilitate the creation of secure, verifiable digital identities [16]. Digital identification systems offer numerous benefits, including real-time identity verification, seamless access to digital services, and improved data privacy and protection.

As digital identification systems continue to proliferate, efforts are being made to ensure their interoperability and recognition across borders. For example, there are ongoing efforts in the European Union (EU) to make different systems, including NIDS; communicate through the sharing of searchable data [17]. This harmonisation requires that identity attributes are collected, presented, and formatted in a way that can make them accessible across borders. Thus, by aligning with international standards and frameworks, NIDS can facilitate seamless and secure global interactions and transactions.

The evolution of NIDS from physical to digital has been steered by technological progress, security concerns, and a growing demand for seamless digital service access. This transformation has resulted in more secure, efficient, and user-friendly identification systems, which are increasingly being merged with online identity management to optimise the overall digital experience for individuals, businesses, and governments alike.

2.3 Examples of NIDS around the world

NIDS vary across countries, reflecting different historical, cultural, and technological contexts. The following are several examples of NIDS from around the world:

United States - social security number (SSN). The SSN is a nine-digit number issued to U.S. citizens, permanent residents, and temporary working residents by the Social Security Administration. Although originally intended for social security purposes, the SSN has become a de facto national identification number used for various purposes, including taxation, employment, and accessing government services.

India - Aadhaar. Aadhaar is a unique 12-digit identification number issued by the Unique Identification Authority of India (UIDAI) to all Indian residents. It is the world’s largest biometric identification system, linking demographic and biometric information, such as fingerprints and iris scans, to a centralised database. Aadhaar is used for various purposes, including accessing government services, opening bank accounts, and obtaining mobile phone connections.

United Kingdom - National Insurance Number (NINo). The NINo is a unique identifier used by the UK government to track individuals for social security and taxation purposes. It is issued to all citizens and residents eligible for work or benefits. While the UK does not have a national ID card system, the NINo serves as a de facto identifier in many contexts.

Germany - Personalausweis (national ID card). The Personalausweis is a biometric smart card issued to all German citizens aged 16 and above. It contains a microchip that stores personal information, a photograph, and two fingerprints. The card is used for various purposes, including identification, accessing government services, and as a travel document within the European Union.

Estonia - e-residency and ID-card. Estonia is a pioneer in digital identity and e-government services. All Estonian citizens and residents are issued a digital ID card that contains a microchip with biometric data, enabling secure authentication and digital signatures. Estonia also offers an e-Residency program, which allows non-residents to obtain a digital identity and access Estonian e-services, such as starting a business or opening a bank account.

Nigeria - National Identification Number (NIN). The NIN is a unique 11-digit number assigned to Nigerian citizens and legal residents by the National Identity Management Commission (NIMC). The NIN is linked to an individual’s demographic and biometric data and is used for various purposes, such as voter registration, banking, and accessing government services.

These examples demonstrate the diversity of NIDS around the world, reflecting different approaches to identity management, technological adoption, and service delivery. Despite these variations, the common thread among these systems is their role as essential enablers of efficient public administration, service delivery, and secure access to digital services.

2.4 Integration of NIDS with online identity management

The integration of NIDS with online identity management involves the process of linking an individual offline identity (as represented by their national identification number or other forms of identification) to their online identity. This integration offers a reliable and secure means of authenticating and authorising an individual’s access to online services. It also represents a significant development in the area of online identity management, offering a comprehensive approach to managing and verifying identities in the digital realm.

One of the ways that can facilitate the integration of NIDS with online identity management is through the use of single sign-on (SSO) for seamless access to online services. SSO is an authentication scheme that enables a user to access multiple applications, platforms, or services using a single set of credentials [18]. This authentication method has transformed how users access and interact with online services. Thus, the integration of SSO with NIDS can enhance user experience, simplify identity management, and improve security, among other benefits [5, 19, 20, 21].

Secure authentication and verification of online identities is another approach to enable the integration of NIDS with online identity management. They involve processes or methods used to ensure that a person is who they claim to be. This is usually accomplished by comparing provided identity information with data from trusted and reliable sources, such as national identification databases. For instance, a bank could use NIDS to verify the identity of a new customer online, using the customer’s national identification information. Therefore, the integration of NIDS with online identity management can significantly bolsters the secure authentication of digital identities as the paper in [22] observes that NIDS can serve as secure authentication and verification approach that connect digital and physical identity, thereby creating trustworthy environments which will strengthen the confidence in online transactions.

Another attractive approach to integrating NIDS with online identity management is the use of electronic identification (eID) schemes. An eID scheme is a framework for electronic identification, authentication, and sometimes digital signatures [23]. It represents an innovative approach that merges NIDS with online processes, providing enhanced security, efficiency, and accessibility. A well-known example of a national eID scheme is Estonia’s e-Residency program, which allows anyone in the world to apply for a digital identity to start and manage an EU-based company online [24]. These national eID systems use various technologies such as smart cards, mobile applications, or other electronic media to facilitate online transactions or interactions that require identity verification.

Blockchain-based identity verification presents a promising approach to integrating NIDS with online management. It is made up of a decentralised, secure, and tamper-proof system, which can enable the creation of a digital identity, ensure that all transactions are recorded and can be audited, as well as enhance data security and privacy [25]. To integrate NIDS with a blockchain-based identity verification process, government agencies could digitise national identification data and store it on a secure permission blockchain [25]. When an individual needs to verify their identity online, they could use their private key, linked to their digital identity on the blockchain. The system would then verify the individual’s identity by checking the corresponding public key stored in the blockchain.

In addition, biometric verification, which leverages unique physical characteristics to authenticate individuals, is increasingly becoming a pivotal component in linking NIDS with online identity management. Given that these physical characteristics are extremely difficult to replicate or forge, biometric authentication, therefore, affords a superior level of security [13]. Many countries have already begun to collect and store citizens’ biometric data as part of their NIDS. This data can then be leveraged to verify an individual’s identity online. When an individual attempts to authenticate their identity, a system can match the provided biometric data against the stored data linked with their national identity. This process ensures that the person interacting with an online platform is indeed who they claim to be.

Governments can also provide application programming interfaces (APIs) that allow third-party online services to integrate NIDS into their platforms [26]. APIs are sets of rules and protocols that determine how different software applications should interact with each other. In the realm of identity verification, APIs can be used to facilitate the interaction between online platforms and national identification databases. These APIs can enable online services to request identity data stored in a national database and then receive this data for verification purposes. They offer an efficient, secure, and scalable way to perform real-time identity verification.

NIDS are increasingly being integrated with online identity management processes to facilitate a range of activities, from accessing online services to authorising digital transactions. The integration of these systems involves using innovative technological mechanisms described in the preceding paragraphs. Each of these methods has its unique benefits, including increased security, efficiency, and convenience. However, they also bring challenges, such as ensuring data privacy and security, managing technical complexity, achieving interoperability, and addressing potential inaccuracies in data. Despite these challenges, these technologies offer promising solutions to integrate NIDS with online identity management processes. As technology continues to evolve, so too will the methods for integrating these systems.

3. NIDS As enablers of online identity

This section explores several case studies of countries that have successfully integrated NIDS with online identity management. These case studies highlight the unique features and benefits of each system, as well as the lessons learnt and the potential implications for other countries looking to implement similar solutions.

3.1 Case studies

3.1.1 Estonia’s e-residency and digital identity program

Estonia has made significant strides in the digital governance arena, establishing itself as a global leader with the implementation of its groundbreaking e-Residency program and its highly sophisticated digital identity system. These initiatives illustrate a successful model of the integration of NIDS with online identity management, paving the way for other nations interested in digitising their governance and offering services remotely. The following paragraphs highlight the unique features and benefits of these initiatives.

The e-Residency program, launched in 2014, is a unique and innovative governmental initiative that provides digital identity to foreign nationals [27]. It offers a robust digital identity, backed by the Estonian government, that enables foreign nationals to access a plethora of online services, including setting up businesses, opening bank accounts, and digitally signing documents [28]. These services are part of Estonia’s digital public services infrastructure, and the e-Residency program was conceived with the objective of extending these services to a global audience.

One of the significant advantages of the Estonian e-Residency program is its ease of access [24]. The e-Residency program has revolutionised the procedure of starting and managing a business in Estonia for foreign nationals by eliminating the need for physical presence. Foreign nationals can now access a host of services such as company registration, banking, and tax filing from anywhere in the world, thereby promoting a culture of entrepreneurship and facilitating business growth.

Another noteworthy feature of the e-Residency program is its broad global reach [24]. It offers individuals from all corners of the globe the opportunity to benefit from Estonia’s advanced digital infrastructure. This approach of sharing digital infrastructure globally fosters international collaboration and entrepreneurship, contributing to a digital economy that transcends geographical barriers.

The digital identity issued as part of the program facilitates the use of digital signatures [29]. The ability to use digital signatures eradicates the requirement for physical signatures, thereby streamlining numerous procedures and promoting efficiency. This propensity to legally sign documents online can also expedite transactions, enhancing business productivity.

Security is another integral part of Estonia’s digital identity system. The digital identity system incorporates stringent security measures, such as cryptographic encryption and two-factor authentication, to ensure the protection of user data and provide secure access to online services [30]. These features ensure that the digital transactions conducted are safe, secure, and reliable, which is crucial in maintaining public trust in the system.

Estonia’s digital identity system also demonstrates a high degree of interoperability [24]. It is designed to be compatible with various EU services and initiatives. This alignment with the EU’s digital initiatives facilitates cross-border transactions and fosters cooperation within the EU. It enables a seamless digital experience across the continent, embodying the spirit of a single digital market within the EU.

The e-Residency program and the digital identity system implemented by Estonia represent a significant advancement in the field of digital governance and a successful example of the integration of NIDS with online identity management. These initiatives illustrate how technology can be harnessed to facilitate business processes, enhance security, promote international collaboration, and provide a host of services remotely.

3.1.2 India’s Aadhaar system

India’s Aadhaar system, launched in 2009, is recognised as one of the largest biometric identification programs globally, boasting over 1.3 billion unique identification numbers allocated to Indian residents by 2022 [31]. This vast identification framework is spearheaded by the Unique Identification Authority of India (UIDAI) and has played a crucial role in revolutionising how Indian residents interact with an array of essential services, including government programs, banking, and telecommunications [32]. Moreover, it has presented solutions to long-standing issues tied to financial inclusion and identity fraud.

Aadhaar’s primary premise involves assigning a 12-digit unique identification number (UID) to every Indian resident. This UID is underpinned by the individual’s biometric data, such as fingerprints and iris scans, and demographic information, establishing a reliable and comprehensive database [33]. The robust nature of this system provides verifiable proof of identity and address, crucial for secure authentication across a myriad of services.

Financial inclusion represents one of the most significant strides achieved through the Aadhaar system. Historically, a considerable section of the Indian population, particularly those from marginalised communities, remained excluded from formal banking systems and various government welfare programs [34]. Aadhaar has extended these vital services to a broader demographic by ensuring every resident is assigned a UID, effectively reducing leakages in subsidy distribution.

Aadhaar has also simplified the often tedious Know Your Customer (KYC) process for banks, telecom providers, and other service providers. The system’s verifiable identity credentials have streamlined customer onboarding and verification processes, enhancing efficiency for these entities [35]. The Direct Benefit Transfer (DBT) scheme, another significant benefit stemming from Aadhaar, links each UID with a specific bank account [36]. This integration has facilitated the Indian government’s effort to directly transfer subsidies and other benefits to the eligible recipients, mitigating corruption and ensuring that funds are received by the intended beneficiaries.

Furthermore, Aadhaar has introduced heightened security measures through its storage of biometric data. This feature offers secure authentication, reducing instances of identity theft and fraud, thereby enhancing the security of digital transactions and engagements [37]. Aadhaar-based payment systems, notably the Aadhaar Enabled Payment System (AEPS) and Unified Payments Interface (UPI) [38], have introduced a new dimension to digital transactions, encouraging a shift towards a cashless economy.

The Aadhaar system embodies a transformative approach to governance in India, driving efficiency and inclusivity across both public and private service delivery mechanisms. The system’s unique blend of comprehensive biometric identification, financial inclusion, and digital transaction facilitation, underscores its role as an innovative and effective blueprint for large-scale NIDS and their integration with online identity management.

3.1.3 Norwegian National Identification Number (Fødselsnummer)

The Norwegian National Identification Number, known as Fødselsnummer, represents a powerful example of a comprehensive identification system that, although not explicitly created for the digital realm, has become a critical facilitator of digital services in Norway [39]. As a unique identifier, it empowers Norwegians to access a wide range of online services, including banking, healthcare, and governmental resources. Its efficacy demonstrates the significant potential that NIDS hold in enhancing access to, and the security of, digital services.

Introduced in 1964, the Fødselsnummer is a meticulously structured 11-digit number comprising the individual’s date of birth, a unique three-digit individual number, and a two-digit control number [39]. This structure ensures an unmatched level of uniqueness, making certain that no two individuals share the same identification number. Consequently, the structure prevents duplication or overlap of identification numbers, reducing opportunities for identity fraud and providing a robust mechanism to verify the identity of individuals.

Utilisation of Fødselsnummer has led to significantly simplified access to a host of services. Due to its universal recognition, it serves as a de facto digital key, unlocking a range of online services across diverse sectors [39]. This function results in a seamless and efficient digital experience for users while easing the process of identity verification for service providers. It is also a compelling illustration of how effectively NIDS can expedite digital processes and increase their accessibility.

Furthermore, the Fødselsnummer is instrumental in managing tax and social security. Serving as a vital cog in the machinery of social benefits administration, the Fødselsnummer helps track income, administer benefits, and monitor compliance with tax regulations [39]. Such use of an identification system underlines the significance of having a secure and reliable NIDS for the efficient and fair administration of social services.

The Norwegian Fødselsnummer exemplifies an effective application of NIDS that, while not initially conceived as a digital identity solution, plays a significant role in enhancing online service delivery. By providing a unique identifier that simplifies access to various services and supports tax and social security administration, the Fødselsnummer underscores the potential benefits of integrating NIDS with online identity management.

3.1.4 Sweden’s BankID

Sweden’s BankID serves as a stellar example of a national digital identity system that is successful in delivering a comprehensive solution for online identification, authentication, and signing transactions digitally [40]. Its launch in 2003 marked a significant milestone in the country’s digital governance initiative and the identification system’s impact and success span various sectors including banking, governmental services, and other private organisations.

BankID is a joint venture involving several major Swedish banks and enjoys regulatory oversight by the Swedish Financial Supervisory Authority [41]. The role of trusted third-party banks is crucial in issuing and managing digital identities. Users can conveniently acquire BankID through their own bank and utilise it in various formats, either as a file on a computer, a smart card, or a mobile app (Mobile BankID), thus catering to a diverse user base with differing preferences.

A critical facet of BankID is its robust and secure authentication process, ensuring a protective barrier for sensitive personal and financial information during online interactions [42]. The system’s rigorous authentication mechanism ensures the integrity and privacy of users’ information, thereby fortifying digital transactions and online service access against potential security threats. The BankID also allows users to sign contracts, documents, and transactions digitally, obviating the necessity for physical signatures [42]. This feature significantly expedites various processes, thereby enhancing efficiency and productivity across multiple sectors.

BankID streamlines access to a wide range of online services. Tasks such as tax filing, applications for government benefits, online shopping, and utility registration can be performed with ease using a singular digital identity [43]. This fosters a user-friendly and convenient digital environment, mitigating potential friction and complexities involved in the digital access of varied services.

The widespread acceptance and adoption of BankID in Sweden, with over 8 million users, underscores its effectiveness and reliability as a digital identification solution [42]. This high level of adoption and trust by users further corroborates the system’s success and impact on a national level. In addition, BankID’s user-centric design ethos, evident in its intuitive interface, enhances the overall user experience [43]. It facilitates seamless authentication and digital signing of transactions, further reinforcing its value and utility in the contemporary digital age.

The remarkable success of BankID serves as a template for countries seeking to implement effective digital identity solutions. The system’s comprehensive solution for online identification, authentication, and signing transactions digitally demonstrates the potential benefits of integrating NIDS with online identity management and is a successful example of such integration.

3.1.5 Singapore’s National Digital Identity (NDI) initiative

The National Digital Identity (NDI) initiative of Singapore represents a significant landmark in the nation’s digital governance landscape. This initiative signifies a commitment to leveraging cutting-edge technology to streamline citizens’ access to myriad online services, thereby facilitating an integrated and secure digital ecosystem. It is also another successful model of the integration of NIDS with online identity management.

Overseen by the Government Technology Agency (GovTech) of Singapore, the NDI is anchored by three crucial components [44] - SingPass, a digital identity platform for Singaporean citizens and residents; Myinfo, a personal data platform that allows citizens and permanent residents to pre-fill digital forms with their personal data without having to repeatedly key in the same information over multiple transactions; and Singapore Financial Data Exchange (SGFinDex), acclaimed to be the first public digital infrastructure globally to utilise NDI and a centrally managed online consent system to enable users to access their financial information on a single platform even if it is held across different government agencies and financial institutions.

Secure authentication is a central feature of the NDI, underpinning its efforts to provide safe and streamlined access to online services. By incorporating sophisticated biometric technology and two-factor authentication, the NDI system offers robust security measures that protect user data from potential security breaches, thereby maintaining the integrity of the system and the trust of its users [44]. Also, the NDI’s ability to grant access to a plethora of online services - spanning from government e-services and healthcare to banking and e-commerce - exemplifies the initiative’s commitment to a user-centric design [44]. With a single digital identity, users are afforded a seamless experience, resulting in enhanced user convenience and the streamlining of service delivery.

An important facet of the NDI is its capacity to facilitate interoperability among diverse service providers [44]. This feature is instrumental in achieving a coherent digital ecosystem, wherein seamless data sharing and transactions occur while prioritising user privacy and security. Interoperability is key to meeting the evolving needs of users effectively, and the NDI’s promotion of this principle strengthens its position as an advanced digital identity system. In addition, the design philosophy of the NDI is centered on the user, valuing ease of use, convenience, and seamless service across various platforms [44]. This user-centric approach informs the design and development of the NDI, ensuring its alignment with user needs and preferences, which is integral to its successful adoption and usability.

The NDI also marks a significant step forward in the integration of advanced technologies into digital identity strategies [44]. By harnessing the potential of biometrics, blockchain, and artificial intelligence, the initiative enhances security, privacy measures, and user experience. This forward-looking approach enables the NDI to respond effectively to the dynamic landscape of digital technology, setting a benchmark for future digital identity solutions.

The NDI initiative in Singapore presents a model for other nations seeking to incorporate advanced technologies into their own digital identity strategies. The successful integration of NIDS with online identity management as seen in the initiative also has several implications for online identity management. As we delve further into the era of digital governance, initiatives like Singapore’s NDI will continue to be instrumental in paving the way forward.

3.2 Lessons learnt and best practices from the case studies

Lessons learnt and best practices from the case studies of Estonia’s e-Residency and digital identity program, India’s Aadhaar system, Norway’s Fødselsnummer, Sweden’s BankID, and Singapore’s NDI initiative, provide valuable frameworks for developing and implementing NIDS. These case studies, spread across different geopolitical contexts, offer a rich repertoire of strategies that have been effectively utilised to facilitate online identity management.

Collaboration among stakeholders. The success of NIDS is often rooted in collaborative efforts among multiple stakeholders, including government entities, private sector organisations, and financial institutions. A prime example of this collaborative spirit can be seen in the creation of Sweden’s BankID, where several major Swedish banks worked together to establish a digital identity framework that has gained widespread trust and acceptance [41]. Such collaborative initiatives are instrumental in building a unified identity management infrastructure, enhancing trust, and promoting broad-based adoption.

Balancing security, privacy, and user experience. One of the critical aspects of NIDS is the delicate balance between security, privacy, and user experience. These systems must incorporate robust security protocols such as encryption and multi-factor authentication, while also ensuring that they offer a user-friendly experience. Integrating privacy-by-design principles in the development and implementation of NIDS can also help address privacy concerns and build public trust [7, 45].

Financial inclusion and accessibility. NIDS can play a significant role in fostering financial inclusion. India’s Aadhaar system, for example, has enabled millions of underprivileged individuals to access formal banking services and government welfare programs [34]. Ensuring that all citizens can access and benefit from online services, especially those from marginalised communities, should be a central aim of these systems.

Interoperability and integration. Successful identification systems exhibit a high degree of interoperability with various service providers and international systems. The case of Estonia’s e-Residency program [24] demonstrates the benefits of such interoperability, particularly in facilitating cross-border transactions and cooperation within the EU.

Continuous innovation and adaptability. NIDS should exhibit flexibility and adaptability in the face of emerging technologies and threats. As exemplified by Singapore’s NDI initiative [44], proactive integration of advanced technologies like biometrics, blockchain, and artificial intelligence can enhance security, privacy, and user experience.

Legal and regulatory compliance. Adherence to legal and regulatory frameworks is fundamental to fostering trust and ensuring the smooth operation of NIDS. Regulatory concerns, especially those related to privacy and data protection, must be promptly and adequately addressed to ensure long-term success [7, 46].

Public trust and adoption. Gaining public trust and promoting widespread adoption of NIDS are vital [45]. Transparency, education, and effective communication strategies can cultivate understanding and acceptance of digital identity initiatives among the public.

Addressing the digital divide. An ongoing challenge for NIDS is ensuring that all citizens, including those in remote areas or those without necessary technological access, can enrol and benefit from these systems. Investment in digital infrastructure and education can help bridge this digital divide and ensure wider participation in the digital society [47].

Incorporating these lessons and best practices into the development and implementation of NIDS can promote secure, seamless, and inclusive online identity management. Nevertheless, continuous research, monitoring, and evaluation are necessary to stay relevant in the ever-evolving digital landscape.

4. Challenges of NIDS As enablers of online identity

This section examines the various challenges associated with NIDS as enablers of online identity. It explores the complexities of striking a balance between convenience, security, and privacy while ensuring that all citizens can benefit from these systems. Policymakers and stakeholders can work together to create robust and effective NIDS that empower citizens and promote a more inclusive digital society by understanding and addressing these challenges.

4.1 Privacy and data security concerns

In this contemporary era of digital services, NIDS stand as a pivotal interface, often handling substantial amounts of sensitive personal data. As such, the concerns around privacy and data security play a vital role in their development and implementation. It is essential to address these concerns proactively, ensuring the protection of user data while facilitating efficient online transactions.

A prime concern that looms over the NIDS is the risk of unauthorised access, hacking, and data breaches [7]. A robust, multi-layered security system is crucial in mitigating these risks. This includes the incorporation of advanced encryption algorithms to protect data in transit and at rest, as well as comprehensive access control mechanisms to ensure that only authorised entities have access to the data. Furthermore, regular security audits are needed to monitor the system continuously, enabling the identification and rectification of any potential vulnerabilities.

Centralisation of sensitive data is also a significant privacy and data security concern. This is because centralised storage of sensitive personal information presents creates a single point of failure that escalates the potential for extensive data breaches or misuse. To alleviate these risks, decentralised and federated identity solutions are suggested [48]. These solutions distribute the stored data across multiple locations, reducing the risk associated with a single point of failure. Also, adhering to data minimisation principles, where only the essential data is collected and stored, further reduces the potential impact of a data breach.

Moreover, respecting individual privacy necessitates ensuring that users are comprehensively informed about how their data is being used, stored, and shared [45]. Providing users with control over their data, including the ability to review, correct, or remove their data, reinforces their trust in the system. Implementing user consent mechanisms and adhering to privacy-by-design principles, where privacy is considered at every stage of system development, further helps in addressing these concerns.

Compliance with pertinent data protection regulations, like the EU’s General Data Protection Regulation (GDPR), is crucial [7]. Adherence to these regulations provides a legal foundation for data processing and sharing, fostering trust in the system. It also helps in ensuring that data is processed lawfully, transparently, and for a specific purpose, which is one of the core principles of data protection regulations.

NIDS can provide a secure and trusted foundation for digital identity management by proactively addressing the privacy and data security concerns described in the preceding paragraphs. Through the implementation of rigorous security measures, user-centric privacy controls, and transparent governance, these systems can strike a delicate balance between protecting individual privacy and enabling seamless access to online services.

4.2 Potential misuse and abuse of NIDS

The potential for misuse of NIDS in unauthorised surveillance and tracking remains a contentious issue. Governments and various actors could utilise the vast pool of personal data held by NIDS to monitor citizens’ activities and movements [49]. While proponents might argue this can help maintain social order and national security, it could also lead to substantial infringements on individual privacy. Moreover, there’s a risk of such surveillance tools being deployed to quell dissent or discriminate against certain groups, consequently threatening civil liberties.

NIDS face the risk of “function creep,” a phenomenon where the systems, initially intended for specific uses, are gradually applied to unrelated contexts [50]. The possible ramifications include the erosion of privacy and the creation of a pervasive surveillance state. This reality underlines the necessity for well-defined regulatory boundaries, backed by stringent oversight mechanisms, to control the scope of NIDS applications and protect citizens’ privacy rights.

Weakly secured NIDS are vulnerable to sophisticated cyber-attacks, leading to identity theft and fraud [51]. The consequences of such activities can be severe, ranging from financial losses for individuals and businesses to potential threats to national security. Therefore, robust security measures, including advanced encryption techniques, anomaly detection, and regular security audits, are essential to safeguard NIDS from such threats.

There is also a risk of NIDS misuse by private entities seeking to gather data on individuals without their explicit consent [52]. Infringement of privacy can occur when businesses or employers exploit NIDS for purposes that go beyond their original intent. As such, there must be comprehensive regulations and robust oversight to ensure that private sector engagement with NIDS respects individual privacy rights and aligns with the system’s established objectives.

Mitigating the potential misuse and abuse of NIDS requires a user-centric approach to their development, emphasising privacy and security. This approach includes implementing privacy-by-design principles, secure encryption, and decentralising identity solutions to minimise the potential for misuse. Additionally, the importance of transparency in governance, solid legal frameworks, and rigorous oversight mechanisms cannot be overstated.

4.3 Interoperability and standardisation of identification systems across Borders

In this era of global digitalisation, the interoperability and standardisation of NIDS across borders have emerged as crucial elements for facilitating secure international transactions and cooperation. Interoperability allows diverse systems and organisations to work together, while standardisation ensures uniformity of protocols and procedures. The following discussion presents the key aspects and strategies for fostering interoperability and standardisation of NIDS to support their integration with online identity management.

Creating a universally adopted standard is integral to ensuring the interoperability of digital identity systems across national borders [53]. Such standards can facilitate a seamless and secure data exchange, strengthening cooperation between countries. For example, in 2018, the Secure Identity Alliance (SIA) launched the Open Standard Identity APIs (OSIA) initiative [54], an interoperability framework as a public good. International organisations such as the International Organisation for Standardisation (ISO) and the International Telecommunication Union (ITU) can also catalyse this process by developing and promoting these standards on a global scale.

Divergent legal and regulatory frameworks across jurisdictions can present formidable challenges in cross-border data sharing. Aligning these frameworks or establishing bilateral or multilateral agreements like Mutual Legal Assistance Treaties (MLATs) or data protection adequacy decisions can navigate these differences, ensuring secure data exchange while maintaining legal compliance [55]. Also, federated identity management systems, which permit users to use a single digital identity across various services and systems in different countries, offer a pathway to enhanced interoperability [56]. These systems can expedite access to international services by unifying the user experience across borders.

International cooperation can foster the exchange of technical expertise, resources, and best practices that are integral to the development of interoperable NIDS [53]. Bilateral or multilateral agreements can lay the groundwork for effective collaboration and data sharing. For example, involvement in international initiatives, such as the EU’s eIDAS (Electronic Identification, Authentication, and Trust Services) regulation or the United Nations’ International Civil Aviation Organisation (ICAO) standards for electronic passports, can be instrumental in advancing the standardisation and interoperability of NIDS.

Countries can create NIDS integrated with online identity management that underpins secure cross-border transactions and cooperation by focusing on building a universally adopted standard, harmonising legal frameworks across jurisdictions, and promoting international cooperation. The adoption of interoperable and standardised identification systems can enable the realisation of a more inclusive, connected, and empowered digital society.

4.4 Inclusivity and access to digital identification for marginalised populations

NIDS function as a key conduit for digital societies, promoting financial inclusion, providing access to public services, and facilitating economic development. However, there is an essential need to ensure these systems are inclusive, catering to all citizens, especially marginalised populations. Inclusive systems contribute to a holistic society, enabling everyone to leverage the benefits of digital services and preventing the exacerbation of societal inequalities. In the context of this discussion, it is vital to take into account various strategies to promote inclusivity and access to digital identification for marginalised populations.

A significant concern for marginalised communities is the”digital divide,” a term describing the disparity in access to technology due to socio-economic, geographical, or educational constraints [47]. This divide poses a substantial barrier to marginalised populations, limiting their capacity to participate in a digital society. To bridge this divide, it is critical to make targeted investments in digital infrastructure, particularly in underprivileged areas, coupled with initiatives to make internet access and digital devices more affordable. Digital inclusion policies must also be interwoven with broader social and economic strategies, providing comprehensive solutions to address these disparities.

Digital identification systems’ enrollment processes should be designed with user-friendliness at the core, taking into account the unique needs of marginalised populations [8]. Those with limited literacy, language barriers, or disabilities must find these systems equally accessible. Strategies might involve multilingual support, accessible enrollment centers located within marginalised communities, and special provisions for individuals with disabilities. Simplifying processes and making them more inclusive could drastically increase the adoption rates of these systems among marginalised groups.

The costs associated with obtaining and using digital identification systems, such as enrollment fees, device purchases, or internet access costs, may disproportionately affect marginalised communities [57]. Consequently, policy measures that alleviate these financial burdens are crucial. Initiatives could include free or low-cost enrollment options, financial assistance programs for technology procurement, and strategies to promote the development and access to low-cost devices.

Marginalised communities often have limited awareness of the benefits and opportunities provided by NIDS, potentially leading to lower adoption rates [57]. Engaging these communities through targeted outreach programs, educational initiatives, and community-level engagement can build trust and create a deeper understanding of these systems [58]. Efforts need to be sensitive to the socio-cultural context of these populations and communicated in a manner that is relatable and clear.

Legal barriers, such as the lack of traditional identification documents, can prevent marginalised populations from accessing digital identification systems [59]. Systems should be designed to account for these situations, offering alternatives for those who lack traditional identification and implementing policies that prohibit discrimination.

Developing inclusive NIDS is a multifaceted challenge that requires concerted efforts from all stakeholders. Prioritising inclusivity and access for marginalised populations can not only promote social and economic inclusion but also foster a more inclusive digital society.

5. Future of NIDS and online identity

Emerging technologies are shaping the evolution of NIDS and the way they interact with online identities. These advanced technologies present innovative solutions to prevailing challenges and open new avenues of opportunity. This section explores these emerging technologies and trends shaping the future of NIDS and online identity.

Blockchain technology. The adoption of blockchain technology into NIDS is a revolutionary step forward in the realm of identity management. It offers a decentralised approach to identity management, which obviates the need for a centralised authority while ensuring secure storage, authentication, and verification of digital identities [25]. Blockchain can also bolsters the security and transparency of NIDS, significantly reducing the risk of data breaches and unauthorised access. Therefore, adopting blockchain technology could redefine the trust dynamics inherent to NIDS.

Artificial intelligence (AI) and machine learning (ML). AI and ML have the potential to significantly improve various aspects of NIDS, including data analysis, pattern recognition, and fraud detection [60]. The infusion of these technologies could enhance the accuracy and efficiency of identity verification and authentication processes, leading to more robust NIDS that are capable of proactive fraud prevention.

Biometric technology. The incorporation of biometric technology, including facial recognition, fingerprint scanning, and iris recognition, can significantly enhance the security and user experience of NIDS [8]. These technologies offer a more reliable and secure method of authentication, potentially replacing or augmenting traditional methods, such as passwords and personal identification numbers.

Internet of things (IoT). IoT devices have the potential to revolutionise the way users interact with NIDS. This technology can enable users to access services and authenticate their identities through various connected devices, facilitating a more seamless and convenient user experience [61]. The interaction between IoT and NIDS could yield broader implications for digital identity usage and management, including the possibility of creating a more interconnected digital ecosystem.

Decentralised and self-sovereign identity (SSI). SSI models offer a promising solution for individual control over digital identities. These models allow individuals to securely and privately store, manage, and share their personal information [62]. Incorporating such models into NIDS could contribute to a paradigm shift in digital identity management, empowering users, and enhancing privacy.

5G and other advanced communication technologies.

The introduction of 5G and other advanced communication technologies has the potential to transform the performance of NIDS by improving the speed, reliability, and security of data transmission [63]. The integration of these technologies could unlock new use cases and applications, driving innovation in NIDS and online identity management.

The incorporation of these emerging technologies can make NIDS more secure, efficient, and user-centric, which will enhance their abilities as enablers of online identity. As these technologies continue to mature, it is vital for NIDS stakeholders to remain at the forefront of technological advancements, ensuring the relevance and efficacy of NIDS in a rapidly evolving digital world.

6. Conclusion

This chapter has examined the pivotal role of NIDS in shaping online identities in the digital age. By exploring the evolution of these systems, their integration with online services, case studies from around the world, and the challenges and opportunities they present, the chapter has provided valuable insights into their significance and potential for fostering a secure and inclusive digital society. As technology continues to advance at a rapid pace, it is crucial for stakeholders to stay informed and engage in continuous research and innovation. This will ensure the development and implementation of secure, user-centric, and adaptable NIDS that can meet the ever-evolving demands of the digital landscape.

The case studies highlighted in this chapter demonstrate the diverse ways in which NIDS can enable online identity and offer valuable lessons and best practices. Countries can develop their own unique approaches to implementing effective identification systems that cater to the specific needs of their citizens by learning from these examples. Moreover, addressing the challenges of NIDS as enablers of online identity is essential for building trust and ensuring the long-term success of these systems. And embracing emerging technologies and fostering international collaboration and harmonisation of digital identity standards will play a critical role in driving the future of NIDS and online identity management. Therefore, stakeholders can contribute to the development of a more secure, connected, and inclusive global digital ecosystem for all by working together and embracing innovation.