Optimizing the KYC Verification System using Ethereum Blockchain

Abstract

People utilise their personal identity documents on a regular basis with current increase in digitization, which are shared with third parties without their explicit authorization and kept in numerous random locations. Financial organizations that include government institutions, banks, credit agencies, etc. store such identification information in their own databases. Having such sensitive information at multiple locations increases the chances of vulnerabilities. The financial sector has been on a search for solutions for such problems for a long time and one viable solution to this is blockchain. By keeping a single safe database on blockchain, the Know Your Customer (KYC) verification procedure reduces the repetitive KYC checks that banks presently do. Because blockchain is immutable and unalterable by definition, illegal modifications to data are instantly invalidated. Blockchain’s decentralised design will enable the collection of data from different authoritative service providers into a single immutable, safe, and verified database. The Blockchain KYC system uses a secure, public digital ledger to provide rapid and fully secure identity verification.