THE ROLE OF BLOCKCHAIN TECHNOLOGY IN DIGITAL IDENTITY MANAGEMENT: CHALLENGES, OPPORTUNITIES, AND FUTURE DIRECTIONS

This paper explores the transformative potential of blockchain technology in digital identity management systems. As digital services expand globally, secure, privacy-preserving, and user-centric identity solutions have become critical. Traditional centralized identity systems are vulnerable to data breaches, identity theft, and unauthorized access. Blockchain-based identity frameworks offer decentralized architectures, cryptographic security, immutability, and enhanced user control over personal data. This study examines the integration of distributed ledger technology (DLT), smart contracts, zero-knowledge proofs, and decentralized identifiers (DIDs) into identity management ecosystems. It analyzes applications in financial services, e-government, healthcare, education, and cross-border authentication. The research also discusses key challenges including scalability, interoperability, regulatory compliance, privacy concerns, and governance models. Findings indicate that blockchain-enabled identity systems significantly reduce fraud risks, improve transparency, and empower users with self-sovereign identity control, although successful implementation requires technical standardization, legal clarity, and robust infrastructure development