The Reconstruction of Gaza and the Role of Blockchain-Based Digital Identities

The reconstruction of Gaza faces two urgent financial problems. The first is the enormous cost, estimated by the United Nations at over seventy billion dollars. The solution to this problem is clear, though challenging: nearly all the funds for reconstruction will need to come from international donors, many of whom have already begun to contribute. The second problem, equally important, is ensuring that the funds reach the right people.

In this context, a digital identification system in Gaza that incorporates distributed ledger technology—the same type of technology used in blockchain currencies—could be transformative. Most of the financial aid to Gaza will necessarily have to go through digital channels. The question is whether the people of Gaza will be active participants in this system or merely recipients; whether they will have digital wallets and autonomy, or whether they will have to wait at distribution points for cash that takes weeks to arrive and disappears into informal economies.

The Problem of Identity in Gaza

The problem of identity in Gaza predates the October 7, 2023 attacks and the subsequent war. In 2021, for example, about five thousand residents of Gaza still had open and unresolved cases without recognized identity documents, out of an estimated total of 55,000 cases accumulated over decades. The situation is further complicated by the 2007 split between the Palestinian Authority (PA) and Hamas. Each entity has maintained separate civil registries. While some Gazans possess identity documents issued by the PA, others are registered only through Hamas's internal system. A significant portion of people are not counted in either system. Moreover, it is unclear how much of Hamas's internal documentation has survived the war, or how many hospitals have managed to keep birth records during the fighting. Reconstruction planners, therefore, start from a fragmented situation.

iDplus: A Step Forward in Digital Identity

However, they are not starting from scratch. In September 2025, for example, the Palestinian Monetary Authority (PMA) launched iDplus, a digital financial identity platform. This is a mobile app that allows users to verify their identity and access financial services. The system uses biometric data, such as fingerprints and facial recognition, to authenticate users. The proposed system builds on iDplus by integrating it with a distributed ledger to ensure transparency and security.

Technological Approach

The proposed system uses a distributed ledger instead of a centralized ledger, meaning that transactions are recorded on a decentralized network. This approach not only ensures the resilience of the system but also reduces the risk of manipulation or disruption by a single actor. Additionally, the credential-based verification model allows transactions to be authenticated even in the absence of immediate internet connectivity, syncing the data with the central ledger as soon as connectivity permits.

Implications for Digital Sovereignty

The adoption of a digital identity system in Gaza raises important questions about digital sovereignty. The management of biometric data and personal information must be transparent and subject to independent oversight to ensure it is not used for surveillance or repression. International organizations and donors must collaborate with local authorities to establish a regulatory framework that protects the rights of Gazan citizens.

Implementation Strategies

To address the challenges of trust and privacy, the proposed system incorporates advanced security measures such as end-to-end encryption and the use of standard protocols like RFC 4120. Additionally, the adoption of the Web of Things (WoT) framework ensures that IoT devices used for identity verification are protected from vulnerabilities and abuse. These devices must comply with the highest security standards to prevent unauthorized access or manipulation.

Role of International Organizations

International organizations, such as the World Bank and the U.S. Treasury, have a crucial role in facilitating the adoption of these technologies. They must provide not only financial support but also technical and regulatory assistance to ensure that the implemented systems are robust, secure, and respectful of human rights. This includes promoting open and interoperable standards that can be adopted by all parties involved.

Conclusions

The adoption of a digital identity system in Gaza represents a significant opportunity to improve the efficiency and transparency of humanitarian aid. However, to be effective, this system must be designed with the specific needs and concerns of the local population in mind. Only through a collaborative and inclusive approach will it be possible to ensure that the technology serves to strengthen the resilience and digital sovereignty of Gaza.