Siloed and centralized identity
Traditional, “siloed” identity is the simplest of the three. In this model, an organization issues (or allows you to create) a digital credential in order access its services.
The trust relationship is established through the use of shared secrets. These are usually things like a username and password, along with additional private information, such as your birthday, mother’s maiden name, a PIN and so on.
The siloed identity model delivers the worst customer experience of the three models. The tedious set-up-a-username-and-password-plus-more scenario repeats for every app or website your member logs into.
As a result, your member has to create and manage usernames and passwords for each relationship. According to some estimates, this means most people can easily accumulate 100 or more of these username/password combinations to manage and remember.
Plus, the silo organizations own the member data and store it in massive central databases. This elevates the risk for data breach and fraud. The vast databases are extremely tempting targets for hackers.