Management of Digital Financial Assets Using Blockchain Technology

This chapter states that there is an immediate requirement to develop digital trust because there are increasing cases of fraud in education, financial, and social welfare services. The existing centralized verification management uses out-of-date information and experiences real-time authentication problems, subjecting the user to fraud and cyberattacks. It brings a next-generation Digital Legitimacy Verification proposal based on Blockchain, Decentralized Identifiers (DIDs), and AI-based verification. It facilitates the secure digital identities and provides constant assurance and real-time authentication to the service providers. The multi-tier DID endorsement model is more inclusive and secure as it gives the verified institutions the ability to endorse smaller or unregistered providers through the use of digital attestations and smart contracts. This is a powerful structure with a wide involvement, non-tamperable membership and greater transparency driven by integrating blockchain and AI-controlled reputation mechanism to avoid impersonation and fraud.