Blockchain for Migrants: Promoting Self-Sovereign Identity and Financial Inclusion

Abstract

This article explores the potential of Distributed Ledger Technology (DLT), with a focus on blockchain, to address key challenges related to the security, ownership, and management of personal data. We trace the foundational work of Haber and Stornetta, who introduced the core principles of blockchain to secure digital records within the real economy. Building on this, Nakamoto’s innovations in blockchain technology introduced a native crypto-asset, which not only aligns and concentrates the interests of network participants but also resolves the previously unsolved “double-spending problem.” This breakthrough decentralizes the verification and control of recorded information, enhancing security in monetary transactions.

Migrants often face challenges related to rights protection, identity management, and limited access to financial services. Blockchain applications, with their strengths in secure data storage, transparent transactions, and reliable identity verification, offer promising solutions. In this article, we examine real-world blockchain applications that enhance identity management and foster financial inclusion for migrants. Blockchain provides an infrastructure that empowers individuals with greater control over their financial and personal data, particularly through self-sovereign identity (SSI) and the use of stablecoins as global currencies. These innovations are becoming foundational components of a new digital ecosystem for information and finance.