How Liquid Avatar is Revolutionizing Digital Identity with Blockchain Technology
How Liquid Avatar is Revolutionizing Digital Identity with Blockchain Technology

The Australian government is planning to introduce the "Trust Exchange" ID system to improve identity verification efficiency for various services, such as checking into hotels and job applications.

Using QR codes and tap-to-pay methods, the ID system will securely communicate information from MyGov accounts, ABC reported.

Set to launch as a pilot next year, the optional system will enable seamless check-in to hotels and job applications without worrying about data leakage.

Under the proposed "TEx" system, individuals can check into a hotel by simply scanning a QR code to safely transmit their passport details via a unified database. Likewise, a QR code at a pub could verify a person's age without revealing the actual details. In other places, users will get a digital token -- otherwise known as a "digital thumbs up" -- that confirms their credentials while keeping their sensitive data private.

"It can all be done via the digital wallet on your phone – the TEx technology does the rest," the minister for government services, Bill Shorten, said at the National Press Club on Tuesday, The Conversation reported. "It can all be done via the digital wallet on your phone – the TEx technology does the rest."

"With TEx, instead of handing over those documents and having them taken to the back office to be photocopied, you will scan a QR code on the front desk – or use technology similar to tap-to-pay machine – which digitally shakes hands with your MyGov wallet," he added.

"You choose which information to share from your digital wallet and consent to its use. You will have a record in your MyGov wallet of what you shared and with whom you shared it," he said

"It could be date of birth, address, citizenship or visa status, or qualifications, occupational licences or working with children check. You control what details are exchanged."

However, experts are worried that centralizing such sensitive information could make it a "honey pot" for cybercriminals. The system could also lead to the government collecting more information than necessary.

Richard Buckland, a cybersecurity professor at the University of New South Wales, called the project "risky," saying, "Once we collect that data, sure, if we've got a system that protects it, that's great, but I've never seen a perfect system."

However, according to the government, the information will not be stored in a single database, as it aims to create a decentralized model, ABC reported.