Blockchain helps to streamline the KYC process

Today, the news of blockchain technology is no stranger to many around the globe. While some may not fully comprehend the technology, it is commonly associated with cryptocurrencies especially Bitcoin. The disruptive tech development provides a decentralized framework that completely transforms business operations in various sectors and the mode of online transactions.

Since the advent of blockchain, several organizations, existing or new have explored different ways to incorporate the technology for efficient business operations. The technology also paved the way for exchanges that facilitate the trade of cryptocurrencies – another offshoot of blockchain technology.

Most, if not all of these organizations have to operate on one blockchain platform or the other whether private, public or alliance chains. Popular blockchain platforms today include Ethereum, Neo, Ontology and several others.

The internet is still centralised

Currently, most of the internet is centralized and third-party platforms such as Amazon, Facebook, Equifax are leading frontiers in controlling massive amounts of data. The majority of these centralized platforms require a constant update of personal information, sign up details, which consists of users’ personal details.

However, on the flip side, as a result of this current centralized system, most, if not all of the user’s personal information provided is susceptible to hacks and unauthorized usage as they are controlled and stored on centralized servers.

This majorly contributes to the increasing demand for data control by users and the call for a guarantee of identity security and data privacy. As it stands today, from recent data scandals like that of Cambridge Analytica, Google+, Equifax and many others, it is highly doubtful that the traditional centralized system can provide a lasting solution.

Also Read: How blockchain is going to impact search marketing

In addition, as many more organizations continue to offer their online services including blockchain organizations compliance and regulatory tools become necessary to ensure seamless business operations. One of such compliance tools is the Know Your Customer (KYC) procedure – a procedure that aims to verify the identities of users who intend to onboard the different services’ platforms. Hence, organizations have to ensure their clients are authentic.

The downside of this procedure is that, considering the current traditional framework, clients have to wait several days or weeks before the KYC procedure is completed. Organizations also have to incur financial and personnel costs to ensure the KYC procedure is completed. What this implies is, for every service platform a user onboards the user has to go through the KYC procedure. As in the case of blockchain platforms also, for every platform the user onboards, they’d have to fulfil the same repeatedly.

The overarching challenge here also is, the data collected are centrally stored and still vulnerable to unauthorized usage.

Digital identities can bridge the gap

Blockchain technology offers a whole lot more beyond cryptocurrencies, it offers a platform for security and protection of data, zero to no risk of tampering or fear of hacking, and also puts an end to the bane of third-party influence that has always been one of the major problems with the centralized framework.

To address the issues of identity data security and tedious KYC procedures, Blockpass is one of the blockchain organizations leveraging blockchain in creating a decentralized self-sovereign identity solution. Blockpass identity application platform allows the user to verify, store and manage identities whilst they maintain full autonomy over the information.

The user control extends beyond the security of their information but also in determining where that information is used. Blockpass Identity application does not store data collected on any central server, it instead passes this data to the verifier who can view the information as long as it takes to create the Identity.

By creating Digital Identities, users will only verify their personal information once and have it stored on their mobile to be used across the various platforms that have incorporated the Blockpass protocol. Blockpass creates user-focused identities, by using the KYC process. This procedure involves data deletion at each level of user verification, which ensures that data is only stored on the user’s personal device.

Also Read: How blockchain can change the way we think of identification systems

The implication of this is that users need not got through KYC procedures repeatedly and organizations can save costs in onboarding new clients.

Users are also guaranteed data control, security and freedom of choice as to how their data are used.

A number of blockchain platforms like Waves, Ethfinex, GoSecurity and Korporatio have already incorporated the Blockpass identity framework for convenient user onboarding.

In today’s world where data is increasingly becoming a most prized asset, it is important that the safety and privacy of these data especially users’ personal data are completely guaranteed. Blockchain technology, appears to be the only tech providing a decentralized solution by fostering a decentralized identity framework which gives users control over their own data and eliminates centralized third-party control.

As many more organizations continue to embrace this Digital Identity framework and ecosystem increases the easier, cheaper and smoother it becomes to conduct online transactions even as the world gradually going purely digital.

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