Identity management with blockchain works by storing identity information securely on a decentralized ledger. Each individual's identity data is encrypted and stored as a unique digital record on the blockchain network. Through cryptographic techniques like hashing and digital signatures, users maintain control over their identity data while allowing authorized parties to verify its authenticity.
Additionally, smart contracts can automate identity verification processes, ensuring secure and efficient interactions between individuals and organizations while reducing the risk of identity theft and fraud. The immutable nature of blockchain for digital identity management ensures that once information is recorded, it cannot be altered or tampered with, enhancing trust and transparency in identity management systems.