Decentralizing Philippine Driver’s License Application and Identity Management for Transparency, Efficiency, and Security: A Design Proposal

Blockchain is a developing and promising field in transaction and identity management. Recent efforts have been underway to address issues of data insecurity and inefficiency presented by centralized systems. Philippine government agencies, like the Land Transportation Office (LTO), traditionally store information in centralized databases, which can be susceptible to unauthorized access. This study makes the case of decentralizing certain LTO online procedures, starting with driver’s license application, as well as identity management using blockchain technology. With an immutable, distributed ledger system, it aims to introduce security, transparency, and efficiency into the system through a proof-of-concept web application. It demonstrates that not only certain LTO procedures can be decentralized, but also the management of license ID, more specifically the selective disclosure of information to requesting parties. The design presented here lays the groundwork for developing a decentralized application through Hyperledger Fabric and Indy, leveraging features like consensus mechanisms, verifiable credentials (VCs), and self-sovereign identity (SSI). The initial evaluation of the design using Hyperledger Caliper sets the stage for further research on decentralization, scalability, and efficiency.