The application of unique identification number, Aadhaar, is not just limited to cleaning the public service delivery system and preventing fraud and fixing leakages. It could install "trust" and authenticate an individual as "real person" in cyber space too.

According to a white paper yet to be formally released by the unique identification authority of India (UIDAI), Aadhaar may "spur growth of existing online businesses or create new online opportunities which critically depend upon the need to authenticate real identity of the individual". The country has close to 10 million online shoppers and is growing at an estimated 30 percent compound annual growth rate vis-a-vis a global growth rate of 8-10 percent, the white paper, titled 'Aadhaar Impact on Public Service Delivery' notes.

"As it is seen today, depending purely on virtual identities create a challenge for certain online businesses where ascertaining the real identity of the user is very important for building customer confidence and business growth," the white paper says.

The report says that  'Aadhaar verified' seller and buyer accounts can "add trust in the market place" and result in accelerating growth. It also proposes that Aadhaar could be leveraged by the social networking, micro-blogging sites and other portals to verify individual's identity, as "currently there is no mechanism to verify the real identity other than manual verification which is not scalable".

The online verifiable identity could also come handy for employers during online recruitment. Using Aadhaar authentication to verify user name, address, age and mobile as given in the candidate profile can be of great value, says the authority.  

Aadhhar will also make it easy for the government to deliver services through mobile phones. "Aadhaar provides a common authentication system making it easier for government and residents to interact over mobiles or the internet."

The paper also sheds light on four key Aadhaar applications. Firstly, the unique identification number can help in verifying KYC (know your customer) and cleaning up the database.  Secondly, it can help boos financial inclusion and inter-banking transactions. Thirdly, it can help authorities in monitoring the attendance of government workers, doctors, teachers, fair price shop owners, among others. Fourthly, it can facilitate linking of databases for example, medical records, customised credit rates and insurance premiums.

The draft report states that Aadhaar platform is expected to become the country's "central identity management system". The mass adoption of Aadhaar and Aadhaar enabled bank account along with mobile will empower the residents and will facilitate direct government to resident interaction in a transparent manner, the report concludes.